Length is also a factor. Single, recognizable words are considered better than multiple words. Fewer letters generally translate to domain names that are easier to type and remember. However, length and value have a complex relationship that our experienced appraisers are able to master and correlate. Longer names may still be extremely valuable, so long as the name as a whole is catchy, memorable, and marketable.

Brand recognition is another important aspect of the domain name valuation process. Simple, familiar words are generally more attractive than complicated words that are harder to spell. Similarly, short, catchy names in attractive industry segments are relatively more valuable. Brand recognition is a very subjective component of a domain name appraisal model which relies on the experience of our appraisers.

Development value is the next factor. This factor considers whether there is a working web site constructed on the name, and if not, whether it would make sense to build one up to increase the name's value.

Next, we consider the TLD ("top level domain") of the name. Only the "dot com" extension receives an excellent rating in this category. A domain name in this TLD is typically worth several times what the same name in any other TLD would be worth. Also, a domain name is much more valuable when all TLD variations of the same name are owned by the same entity, and when variations, misspellings, and other variant names such as "wwwDOMAINNAME" are also owned and/or controlled by the same entity.

Traffic and revenue - actual and potential - are the next factors to consider. Fundamentally, the value of a successful operating web site is derived from its ability to generate traffic and attract business. The number of visitors a site generates each month is a major factor in determining the value of a domain name. The value of a domain name also varies significantly depending on the "industry sector" represented by the domain name. Using our extensive database, our appraisers are experts at considering these and all other factors that affect the name's valuation.

sm Domain names can be categorized as either "descriptive," "suggestive," "fanciful," or "trademark." The domain name type affects the valuation of the name, and our appraisal model takes advantage of our knowledge base which contains thousands of appraisals and actual domain name sales to adjust the estimated value of a domain name depending on its type. Finally, we also use a proprietary methodology to determine the search strength of a domain name. The search strength generally indicates the probability of finding the name in a search engine by typing in the words that make up the name.