Domain name trading – also known as domaining – is a lucrative business. But how do you determine the value of a domain name? The answer to this is not simple.
In this article I will tell you why a good domain name is important for your business. I will also provide practical tools so that you know what to do if the domain name you want is already registered.
Virtual real estate
A domain name is perhaps best compared to real estate. A shop in the busy Amsterdam Kalverstraat is obviously many times more expensive than the same shop in the centre of Sneek. A-locations are becoming scarcer and more valuable, also on the internet.
To immediately dispel a misconception: a domain malaysia phone number list name that is 'not in use' can, comparable to a vacant lot, still represent a certain value. In many cases, these domain names can be acquired at a market-conform rate.
But what is a market-conform rate? Just like with real estate, there are also factors in the case of domaining that determine the (economic) value of a domain name. Think of the generic name, length, extension or age of the domain name. Historical transactions or activity on the internet also play a role in determining the value.
332.4 million domain names
To understand the market we are operating in, it is good to know some figures. According to Verisign, manager of .com and .net, among others, there are approximately 332.4 million domain names registered worldwide. Of these, almost 40 percent (131.9 million) end in .com.