Andrew Rosener wrote an article on Media Options, highlighting the key factors behind the rising values of short domain names.
Here is an excerpt from the article:
"The value of short domain names continue to rise, seemingly without end or limit. This leaves many asking if this is a temporary bubble that will burst or a more intrinsic shift in value."
Here are the 5 five factors according to Andrew that drives the rising value of .COMs :
1) Growing Economies - The sheer size of the economy in China, India, Brazil and other growing markets is driving exponential consumption online.
2) Relative values - Increased ROI from any advertising, increased social shares, etc.
3) Mobile Value including Google’s new mobile SEO & mCommerce - Mobile is a significant driver in relative values of premium domains. Google just made another change, and it’s all about how well your site performs on mobile. Short domains are proven again and again to be the most visited, best performers for traffic as well as mCommerce.
4) Current market for liquid assets - There is a premium placed on all relatively liquid assets worldwide right now. Domains included. Premium domain names are no exception, especially one word, numerical (NN.com – NNNNN.com) or 2-4 character .COM domain names, are highly liquid and desirable.
5) Supply & Demand - The ever-increasing scarcity, especially in the 2 and 3 character .com market (LL.com, LLL.com, NN.com & NNN.com), continues to drive up premium domain prices and I believe this will happen even faster than ever going forward as scarcity increases exponentially, not in a straight line.
You may read the complete article on Media Options
I think the main reason behind the rising value of short domain names is because of their scarcity and increase in demand!
What do you think, is driving the price of short domain names?
Here is an excerpt from the article:
"The value of short domain names continue to rise, seemingly without end or limit. This leaves many asking if this is a temporary bubble that will burst or a more intrinsic shift in value."
Here are the 5 five factors according to Andrew that drives the rising value of .COMs :
1) Growing Economies - The sheer size of the economy in China, India, Brazil and other growing markets is driving exponential consumption online.
2) Relative values - Increased ROI from any advertising, increased social shares, etc.
3) Mobile Value including Google’s new mobile SEO & mCommerce - Mobile is a significant driver in relative values of premium domains. Google just made another change, and it’s all about how well your site performs on mobile. Short domains are proven again and again to be the most visited, best performers for traffic as well as mCommerce.
4) Current market for liquid assets - There is a premium placed on all relatively liquid assets worldwide right now. Domains included. Premium domain names are no exception, especially one word, numerical (NN.com – NNNNN.com) or 2-4 character .COM domain names, are highly liquid and desirable.
5) Supply & Demand - The ever-increasing scarcity, especially in the 2 and 3 character .com market (LL.com, LLL.com, NN.com & NNN.com), continues to drive up premium domain prices and I believe this will happen even faster than ever going forward as scarcity increases exponentially, not in a straight line.
You may read the complete article on Media Options
I think the main reason behind the rising value of short domain names is because of their scarcity and increase in demand!
What do you think, is driving the price of short domain names?
