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Domain Names - Determining Monetary Value


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One of the great things about the Internet is that it has opened up a vast amount of opportunities that simply were not available in the past. One of these is that goods and services can be sold instantly and worldwide through various websites, this includes domain names. The value of a domain name can vary greatly depending on a number of factors. These factors are as follows:

Character length
Amount of popular keywords
Amount of monthly traffic
Age of the domain name
Whether the domain is associated with a large business, i.e. Facebook
How memorable the name itself is to users.

Although domain names that are around 4 characters or less are often worth more than those containing more characters, the content is also a key aspect. For example, BBC.com would be worth a lot more than XYZ.com because the BBC is a very well known organisation and XYZ is just the last three letters of the alphabet.

How old the domain name is can often affect its value, due to the fact that domains with history seem to be more trusted by search engines as having legitimate content, and are therefore easier to get listed on search engine results pages (SERPs).

The two primary aspects for valuing domain names, out of the five listed above, are the amount of traffic a website receives and whether the domain contains or is associated with a well known and usually large business. There are a number of resources for valuing them, many of them being free resources that all give different and often confusing valuation results.

This means that the best way to find out the true value of a domain name is to use a professional domain valuation service that can give you an objective and unbiased valuation of it.

Also, it is worth noting that sites do not necessarily have a fixed value due to the fact that their value changes constantly depending partially on website traffic.

There are also other factors, such as Google PR and Alexa Rank, that are sometimes considered as reflecting the value of a domain. However, due to the fact that both of these aspects are not always accurate, they should only be used as an estimate of a domain's traffic and value, rather than taken as verifiable fact.

The best website names, and also some of the most valuable, are those that are memorable and can be easily recalled by users. When choosing a memorable domain name, it should only contain one or two keywords.

For example, a site with a name such as cheapcarinsurance.com would be more memorable and therefore a lot more valuable than a domain with a name such as cciacmv.com (cheap car insurance and cheap motor vehicles)

Such domains should never contain more than 3 keywords as this is not only confusing to users, it can also be considered keyword stuffing by search engines, which would greatly harm the potential amount of traffic a website might receive, and would therefore have a detrimental effect on its overall value.