Value of a domain name

Value of a domain name

The value of a domain depends on a variety of factors, some of which correspond to measurable parameters.

These factors include the following:

  • Used TLD (Top Level Domain)

The TLD is the portion displayed to the right of the dot. The most valuable domains use the TLD .com and for good reason. It is a general tendency for everyone to search for a website by adding .com after the company name. In addition, .com is the oldest TLD and is considered a global domain extension. There are, of course, plenty of other TLDs, such as .in, .net, .org, etc., but none of them are as valuable as .com.

  • Memorability

Simple domain names have great appeal and generally have a higher value. This also applies to the length. Domain names with fewer letters generally have a higher value (such as Flipkart). This is most likely due to the fact that shorter domain names are easier to remember, faster to enter and less prone to typos.

  • The radio test

Domain names are often spoken, such as when one friend tells another friend about a favorite website. So a domain with a simple and easy to understand spelling when this name is spoken is often more valuable than one that doesn’t. For example: and will pass the radio test.

  • Web traffic

Web traffic comes from input (typing directly into a browser’s URL bar), links/bookmarks, and search queries. If you can estimate how much each unique visitor is worth, you can use a simple formula that calculates how much revenue or value the domain generates. Domain names based on popular topics have a higher value than domain names that refer to narrower topics (such as ShopClues vs. Ayush). This is due to the simple fact that more people are searching for these topics on the web. More traffic equals higher website value.