I've found throughout my years of investing that value is subjective. And most, if not all appraisal tools throw out random prices based on keywords and other up in the air analytics.The lack of transparency is what gets me.
When I first started investing, I bought so many different domain names. Those domain names lacked branding ability, no purpose, no NOTHING.
Then I figured maybe I need to step outside the box, consolidate my portfolio by doing a little market research; reverse engineering is what I would like to call it.
I began building my portfolio off of what people were actually building, trends, viral niches etc.
Reverse engineering allowed me to figure out what was deemed as valuable. Because what we may think is good, more times than not is probably trash to someone else.
You have to let the market tell you what they want and give it to them, that goes for any business you're growing.
We don't invest in domains to keep them. We invest, hoping that they gain value over time so that we can sell them for a profit later.
I'll tell you this-
- Single-word domains are always great
- Two word domains are also great
- Three-word domains are questionable, not impossible though
Stay away from silly domain names with unnecessary numbers and symbols (whos going to remember that?
There are different ways to approach the investing process. And your approach ultimately depends on what type of domains you are investing in.
Are you focused on expired domain names?
Are you focused on hand registered domain names?
Always invest with purpose. Investing in domain names is just like investing in the stock market. You aren't going to put your money with a company that doesn't have the potential to give you an ROI (return on investment) So don't do it with domain names.
Think Brands. Most domains start out invaluable. It's up to you to make them worth something.
Goodluck