The question is: What is the value of a domain name?

So how come a domain has any value at all?

Simple answer: a domain can help an individual or a company to reach their goals better as they could do without that domain name. How can a domain name help? What determines a “good”domain?


a domain can be self explaining

  • sells automobile tires.
  • does the same.

Both domain names are good domain names, beiing much better and more valuable as the search queries for keyword “tires” are much higher then “car tires”. is the shorter domain, you’ll lose less visitors misstyping the domain name, it’s easier to memorise and if you talk on the phone, hear it spoken on radio or tv commercial it’s easier to understand. obviously is a very valuable “Premium Domain".

But has additional advantages. That domain has “Build In Traffic". People will visit that domain without you spending any advertising dollar. It will definetely save you money right from the start, as you don’t need to buy those laser targeted visitors. For the keyword “tires” you would have to pay at least $1.50 USD per click at google!!
Aquiring that so called “expensive domain name” can literally save you a lot of money.


additional advantages

Imagine a “tires” advertisement. A Google adwords ad having a display URL of will scream “tires” and every searcher will immediately understand that “” is a specialised internet sender of tires. Your chance of getting a lot of clicks on that ad is heavily increased by the domain name. Resulting in another big advantage of that domain name:
Your Adword Ads Get Cheaper, as a lot of searchers click on that ad the google intern so called CTR% (Clickthrough Rate PerCent) rises, Google Robots understand that you are showing relavant ads to their visitors.
Google wants the searcher to be happy. Your Ad will show at a better (higher) position and that again increases your CTR%.

Your higher Clickthrough Rate, will get you more buyers, your money rises, the domain is earning you money, more money then other less valuable and eventually cheaper domains would have done for you.

That money will stay for a long time period. You pay only once – when you buy that domain.




unique domains can monetise a website better and are – initially meaningless – unique, short domain names, that perfectly fit for “Branding“. Such domain names are best to promote a new company or a new offer on the net in order to increase popularity faster.

That name should be short, it should be easy to be understood at Phone or R adio / TV spot. Think of how you spell an email adresse on the phone.

generic domains get you targeted visitors

The value of a domain having a generic meaning, is resulting from the amount of visitors that will come automated to your site.

A generic domain is a domain consisting of one or two terms, that could be searched by a visitor. Thats why they are called Keyword Domains.

“Brandbuilding” is an expensive business

To achive brandawareness you always need deep pockets. If your “Branding” is done for the wrong domain, you waste your assets. A short, easily memorisable domain with little or no missspelling options that sounds nice – thats what you want. But supply is limited, so rises value. And in case that domain has a meaning on top it is getting expensive.

each domain exists only once

The more competition, the more your competitors understand the advantage of a certain domain name, the higher the price gets.

The more money that industry earns, the more that market will be willing to spend for a great domain name.

The higher the Keyword Clickprice at Google Adwords gets, the higher the price for the relating domain name will be. The more searches the keyword has on a monthly basis – the more competative the domain name gets.

how to avoid mistakes

Most frequent mistakes, you can easily avoid:

Advertise only on domain names that you own all variants and register the available missspellings as well.

Of course you need the “.com“. You want to register .net and .org as well and get the country TLDs if you do business internationally (.de .at .ch .nl).

If you promote a longer domain name, get all the missspellings.

(There are many ways to (miss)spell “” – few of them belong to “facebook inc”.)

If you are in the process to be the founder of a new company, take care to register all possible variations of your domain name, before registering the company and even before you talk in public about your plans.

Personally register the domain in your own name don’t let an employee do it, he may register himself as the owner. You wont get the domain, if the Ex-Employee refuses to transfer the domain.

If you register the domain(s) in the name of your company a transfer of the domain names maybe easier in case your sell the company later on.