Valuing a Domain Name

There is much more that goes into determining the value of a domain name than a simple revenue multiple or traffic report. The value of a domain name lies in the name itself. The reason we have domain names is because the IP address system would be too complicated for consumers to remember. It’s much easier to remember ElliotsBlog.com than a string of ten random numbers. Because we use domain names as memory recall devices, the most descriptive, and easiest to remember domain names are best.

When I look to buy a domain name, the most important thing I evaluate is whether I believe a business can be built on that particular name. It doesn;t matter if it is a service or product based company, when a person hears a domain name, they should know what they will find when they navigate there. Nearly all of the domain names I purchase have this attribute, and I think it is important for domain investors to consider this when they are buying their next domain name.

Traffic and currrent/expected revenue are important, but the actual name is the most important valuation factor for me.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Recent Posts

FedEx Buys Its 3 Letter .com Ticker Symbol

0
It looks like FedEx has acquired a valuable 3 letter .com domain name. Whois records show FedEx is now the owner of FDX.com. The...

Squadhelp Rebrands as Atom with Atom.com

7
Squadhelp announced a complete rebrand this morning. The company is now known as Atom, and it acquired the Atom.com domain name in advance of...

Nissan Going after Nissan.ai

3
Nissan is an automaker that uses NissanUSA.com for its website here in the US. The reason it uses an off-brand domain name is because...

Using AI For Background Image

9
I acquired a domain name last week, and once it transferred to GoDaddy, I set up a custom landing page using Carrd. Instead of...

It’s All About the Time You Put into It

2
A few years ago, my wife jokingly described my daily work lifestyle as leisurely. In some ways, I thought of that as a badge...