What Factors Make a Domain Name Valuable?

Knowing whether you have a valuable domain on your hands doesn’t require a ton of work, but it does require that you understand the factors that lead to a domain being valuable.

Often, the value that a domain holds will be determined by how desirable the domain name is. The list of factors below can help to illuminate whether or not your domain is valuable, but it’s not a science or always right.

There’s always the chance that your strange and unique domain could align with a phrase from another country, or be the ideal name for a new startup.

Overall, the conditions below will be a good indicator of how valuable a domain actually is.

  1. The Associated Top-Level Domain
    Having a domain name with a trustworthy top-level domain (TLD) will go a long way towards making a domain name desirable. For example, the domain “cnyco.com” will have much more value than the domain “cnyco.xyz.” Typically, more standard and popular TLDs will always be a better bet.

For the new startup,Some of the most popular TLDs include .com, .ltd, .net, and .group. However, other combinations could hold value, providing they make sense. For instance, the domain “aiauto.tech” could be valuable to some businesses.

  1. Any Keywords Present
    If your domain name has a popular keyword in it, this could also help to improve its value. For example, “aicarinc.com” would be a valuable domain for the Artificial intelligence car Inc. Exact match domain names don’t hold as much value as they used to, but having the right keywords in a domain can increase how desirable your domain name is.
  2. The Length of the Domain
    Generally, the shorter a domain name, the more valuable it will be. Now, this won’t always be true. For example, the domain “r4dxf3.com” won’t be very valuable. But, taken as a whole, domains with few words or short phrases will hold more value. Shorter domains are much easier to remember and more straightforward to market overall. You can easily build a business around a shorter domain, while it may be more difficult with a longer domain.

But there are exceptions, “websitedesigner.top” perfectly matches your job and business.

  1. The Overall Brandability of the Domain
    The brandability of a domain can be hard to define. But, it’s still a significant factor when people are choosing a domain name. Essentially, good brand names are memorable, unique, and catchy. Think of brands and domains like instagram.com, twitter.com, grammarly.com.
  2. Existing Site and Traffic
    If you’re selling a domain name and the site is already getting traffic, or has an existing backlink profile, then you can typically get much more for the domain.

An interested buyer could be purchasing the domain for the name and the SEO power alone. They could be interested in taking over your website. Or, they could be using it for the sheer SEO power alone and forwarding your domain to their existing site.

Older domains also tend to be more valuable than a brand new domain. So, if you have an old domain, even if you haven’t done anything with the domain, it can still be more valuable than a domain you registered a few months ago.