When I am evaluating a domain name to purchase, one of the most important questions I ask myself is this: Can I imagine a business using this domain name? It seems like a pretty elementary question, but I think it is important to ask. When I deploy capital on a domain investment, I want to be sure the domain name will be desired by someone and that it will then become a matter of price for a prospective buyer.
From my perspective, if a domain name needs to be explained (in my head or to someone else), there is probably a lower chance of selling it. Industry specific (ie technical) domain names may be an exception. I don’t think I have ever sold a domain name that has a meaning that wouldn’t be understood by the majority of people who might see it.
Some might argue that there are plenty of terrible domain names that don’t make much sense being used by companies of all sizes. I would imagine that if a company is using a bad domain name, it is probably using the domain name because of convenience rather than preference. It is likely they chose the name because it was cheap and available. Essentially, they don’t value the domain name as much as they should – or as much as a domain investor thinks they should value it.
The first question I ask myself – and maybe the most important thing I consider – is whether I could envision seeing a business use a particular domain name. If the answer is yes and I think the price is reasonable enough that I could sell it for a profit, I will pursue the opportunity. It’s not easy to sell domain names that don’t really make much sense 🙂