To estimate the value of a domain name, consider what the value of one new customer is to your business, including its lifetime residual value and all of the referrals the customer will provide. Multiply this number by the number of new customers that your generic domain name might attract, including type-in traffic and keyword search engine traffic.
For example, if each of your customers is worth $100 over their lifetime, and your new domain name attracts 100 new customers over the life of your company, then the domain name should be valued at $10,000 to your business. If your premium name attracts 1,000 new customers and they are valued at only $10 each, over their lifetime, then you would come up with the same $10,000 valuation.
So, if you can buy a domain name for a few thousand dollars that is worth tens of thousands of dollars to your business, then it’s clearly a bargain. The more generic domain names that you have, that generate site traffic and new customers, the better.
Of course, all generic domain names can easily point to your existing site to attract typein traffic, such as with Loans.com. Regardless of how many additional customers a domain attracts to your company, it should hold its resale value and in all likelihood grow more valuable over time.
Each domain name is like raw land. It is a place where people can go and it can be built on. Strong domain names that are Dotcoms with No Dashes and No Trademark infringement are the pieces of land that everyone wants to own. The more that people visit and the more motivated they are, the better your business will be.
If you feel that any of our names would be valuable to you, make us an offer.
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