Valuing Domain Names
How do you put a price on a domain? Appraisals aren't an exact science - they're subjective by nature. The reality is that, as in any market, you can only sell a domain for a price a buyer is willing to pay. However, there are a few factors that increase or decrease the value of any domain.
1. Is it a .com?
There are a number of TLDs available but .com is still considered the best, particularly in the global market. This is less true however in regional markets, with Germans often preferring .de domains and Britons .co.uk. It's also not the case that every .com is more valuable than every non-.com. The other factors described below are just as important in determining a final value.
2. Short and Sweet
Names that are short and memorable are valued for their marketing potential and popularity with internet users. Expect to pay more for these. Single-word domains are particularly sought-after. For example, blue.com sold recently at Sedo for half a million dollars.
On the other hand, not all single words have potential as domain names. There are many excellent two- and three-word phrases that are much more valuable. If you're buying a domain to promote your products, then it's more important that the domain describes what you sell, than that it is a single word.