How Domain Name Length Affects Value

This is a continuation post of The Different Types of Valuation Models for Websites.

Number of Words & Length

The numbers of words and length of a domain is important because of the way in which it associates the site itself with a set of keywords, and the way in which the consumer engages the brand that the URL creates. If the name is excessively long, it will generally be worth less than a particularly concise alternative. In the most extreme cases, the value of a single-word domain can extend into the millions of dollars simply because of its effectiveness (ie., one of the most expensive domains ever sold).

Within this section there is also room for related domains to acquire value through plurality. Specifically, a plural domain may take on a greater significance in its ability to attract consumers searching through a syntax that includes a verb, whereas a singular domain might attract a broader range of visitors in the way that the word itself will also be included in the plural search results. Lastly, the addition of numbers after a domain name will decrease the value of the asset, because consumers do not search for keywords as “keyword123”. 2011 Q4 Domain Market Study

So what kind of value does the market actually place based on the length of a domain name? According to Sedo, a popular domain auction website, enough to create a statistically significant curve. This means that the market most favors domains between 3-13 characters long, and then quickly depreciates the value of those assets afterwards in accordance to a long-tailed distribution.

So how do we take advantage of this trend?

By watching the pros of course! By looking over the top 10 Public Sales of the same report, we can immediately see how it is the domains with only a few words, a reasonable length, and no unnecessary numbering have managed to pull in massive returns over the last year.

View the full Sedo report here.

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