I was recently reading a news item which stated a few domain names which were purchased at exorbitantly high rates. The domains that were in this list included diamond.com for $7.5 million, business.com for $ 7.5 million and beer.com for $7 million. What it shows to me is that domain names can command immense value for many reasons. No company would ever dish out vast sums of money for a domain name, if there wasn't a large economic benefit for doing this.
What is the benefit for business to purchase a domain at seemingly unbelievable rates?
- Domain name exact match - a company may purchase a domain because it matches the company name exactly and the fee to purchase the domain makes economic sense. Ever heard of the Nissan case? (that is a whole different story!)
- Brand recognition - the domain is simple, descriptive and offers the company a broad domain which describes their brand
- Search engine reasons - generic domains and domains with relevant keywords in the name can be an important factor in ranking well on search engines.
Here are a few tips for those that are looking to acquire or register domains for their own website;
Domain Names – A Reflection of Your Online Brand
Domain names are a reflection of your online brand and should reflect the type of business the website seeks to promote. To ensure a better chance at ranking well in search engines, domain names should contain keywords related to your line of business as it is assumed that keywords appearing in domain names figure prominently in search engine algorithms. If the keywords used are appropriate, there is a likelihood of the website being displayed prominently for searches made using these same keywords.
If you have a well established brand that commands value in the market it would be advisable to include that name in the domain URL. You could also choose keywords pertaining to the industry and choose a domain name that is reflective of the products and services being offered by the industry you are in.
If you were a company that sold "Steel Buildings" for example you may want to register the domain name www.steelbuildingsinc.com.
Hyphens can also be included in your domain name, however, if a domain name can be registered without then we recommend doing it that way.
Extensions & Geo Targeting
Consideration also needs to be given in selecting the proper extension for your domain name; “.com” is recommended for sites the conduct business on a global basis. We also recommend '.com' extensions over every other domain extension if it is available. .NET extensions are a much less favourable alternative to .COM but there is no evidence that these extensions rank any worse. If your domain is taken and you do not service an international niche you may want to consider a localized domain. Some examples of GEO targeted domains include: .ca for Canada, .uk for United Kingdom, .au for Australia.
If your company is for charitable reasons you may want to consider a .ORG address. Be warned though that these domains are usually associated with sites that do not conduct regular online business.
In most cases, we also suggest to keep your domain as short as possible. Your domain name should remain under eight characters and should always be easy to read, write, hear , remember and spell. In short, your domain name should be user friendly.
Good Domain Name = Increased Traffic
A well thought out domain name is a 'sine qua non' for a successful website .
A good domain name in conjunction with other SEO elements will guarantee a steady flow of traffic to a website. A good domain name alone, however, will not guarantee great web traffic. It should combine as part and parcel with other SEO processes that include using original content, links, conversion friendly website design, directory submissions, blogs, press releases, article submissions and good navigation among other important website elements.
As your domain name represents who you are online, choosing an appropriate domain name is a crucial part of your online business success. Your business growth will be accompanied by increased recognition and acceptability of your domain name among the business community.
If you want to begin looking for a domain quickly here is one of our favorite tools that we use to search for domain quickly and easily!
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Hi, this is handy reminder to everyone.
Choosing a domain name can be a major step for your business. If you choose a really bad one you can actually harm your business. While that’s not likely, choosing a good domain name can be a great way to improve your brand name and bag more customers.
on
Great article on domain names. Definitely useful.
Thanks a lot to the author for sharing it here.
Dimitry’s confusion also rings in my mind, I must go through other posts too to get more detailed information.
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The registration date of domain is also important if you want your pages to be indexed by search engines. Priority will be given to the domain names if it’s registered at an earlier date. So if you have plan to start business even after 5 years, get your domain registered now! Thanks for the informative article.
on
Good informative article on domain names. Never thought there is so much to consider when selecting a name for your website. Thanks for all the information Cyriac.
on
It’s interesting that domain names having more than two or three words are are often thought to be less valuable. But longer names have their effect. They tend to be significantly more specific and give more clarity to the user forcing conversions. Sites with small names may attract more traffic but not necessarily more conversions.
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I guess the key question while choosing a domain is whether to choose a keyword rich name or a more brandable name. It’s diffcult to compromise on both. I will favour brandable over keywords if you want people to come back to your site again and again. If your domain is not memorable then having keywords won’t help you.
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A good domain name that is easy to remember and related to your industry can surely enhance your business prospects. Besides, search engines are known to give due weight to domain names in their algorithms. Good to remind people of its need and importance in boosting their business prospects.
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A good domain name commands immense value; no doubt on that and the examples you have given just reinforces that very fact. But then I seriously doubt if domain names alone can rake in the benefits that you’ve written about. I feel a good domain name in combination with other SEO processes can only bring in the desired results.