Why Domains are worth so much.

[Big HEAD]

I feel like a born again christian, having had my account suspended, for trying to find out what perpetual naysayers feel positive about (either domains or another market). I am going to try again but in a different manner after being re educated.

Why Domains are worth so much.

1. SEO.; Google weights heavily a domain name, if it contains exactly the search term a user enters. The commercial value of this is huge to a business, this is reflected by my own experience.

A domain we brought for $900 ChinaMould.com had the search term China Mould, which I suspected by the sponsored Ads are businesses trying to outsource their plastic products cheaply in China (mould is the term for the tool to press out the plastic product). With no back links and only 3 months of history of a web site, ChinaMould.com, is now ranked by Google, number 2 or 3 for the term China Mould and Yahoo 1.
No doubt content is king, but for a start up company it gives you a huge advantage over the establish players to own the search term dot com. And for the establish players it cements your position. Remember 70% of people ignore the sponsored results and go for the search rankings.
We could of only achieved this in such a short space of time because of the domain name.

There are many other reasons why domains are so commercially valuable and online Brand comes a close second.
Like to hear other reasons which underpin the values, useful when negotiating with end users. But no hype please back it up with examples. :blink:

 

[dbtbandit67]

it is beneficial when the type of business is self-evident in the domain name itself. you don't have to repeat yourself by saying, "xxxx.com/xxxx" caters to this and that. the domain name itself becomes a brand, and it becomes easy to promote.

when you talk about esurance or autotrader, it is self-evident in both of those names, the function of both of those web sites. and they are short, memorable, and brandable.