Domain name appraisals

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Domain name appraisals

A domain name is worth what someone will pay for it. A domain that looks valuable on paper is worth what it appears to be worth only if someone is willing to pay that amount for it. On the other hand, a domain that doesn't look valuable at all may be valuable to someone who is willing to pay a lot for that domain. The value of a domain is what it's worth to someone else, and that value is often dependent on the revenue that the domain can help generate.
While no one can assign an exact value to a domain until someone has paid for it, the following criteria are commonly used to determine a domain's general worth. Having a combination of positive factors usually increases a domain's value.

Contents 1 Domain length 2 Memorability 3 TLD 4 Domain age 5 Domain keywords 6 Hyphens and numbers 7 Domain history 8 Backlinks 9 Brandability

Domain length

Shorter is better, and shorter domains almost certainly cost more than longer domains. Short domains are easier to type, remember, and fit on business cards and other promotional materials.

Memorability

Short or longer domains have increased value if they're easy to remember. One-word domains, for example, can be very valuable. A domain that can be easily pronounced is easier to remember than one that can't be easily pronounced, so being pronounceable is a related factor.

TLD

A dot com (.com) TLD or extension is generally considered to be the most valuable extension. If your domain is a dot net (.net) extension, for example, you risk losing traffic to the dot com extension variation of that domain if it points to a different website.
Domains with country-specific domain extensions are valuable for websites catering to traffic from the specific country. Because they're country-specific, however, their value is generally limited to what they're worth within that country.

Domain age

Search engines tend to give more weight to older domains, and people who know how to check when a domain was registered often consider a website more credible if it's been in existence for a few years. For this reason, some domain buyers look for already-registered domains that can be purchased and transferred to them.

Domain keywords

While one-word domains are extremely popular, domains with two words, possibly even three words, can still be valuable if those words together have commercial value. Keywords relevant to an emerging product or trend give the domain increased value.

Hyphens and numbers

Hyphens in domains reduce their value. The hyphen is often forgotten and people go to the non-hyphenated version of the domain instead. Also, anyone can take a two-word domain, insert a hyphen between the words, and register it as a new domain. That doesn't make it a valuable domain.
Domains with numbers are generally less valuable too. As above, anyone can take an existing domain, add a number or two to it, and register it as a new domain. It can look like a cheaper version of the original domain. Also, when hearing a domain with a number in it, listeners don't know whether to write the domain as a number (e.g. "2") or as a word ("two" or "to"). In cases where the numbers add meaning to the domain, such as a relevant year, they're less likely to detract from the domain's value.

Domain history

Was the domain previously used for a popular, reputable site? The domain value goes up. Was it used for a site with questionable content, or was it used to send spam? The value goes considerably down.

Backlinks

Quality backlinks that are relevant to what the new domain owner wants the site to be about add value. If the backlinks aren't relevant to the intended purpose of the site, or if they're of poor quality, they don't add value to a domain.

Brandability

Can a domain name be a marketable name for a company or product? If so, its potential value increases.

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Article Source : http://www.webhostingtalk.com/ permitted republishing here.