How are domain names valuations calculated?

Domain names are inherently valuable for their scarcity, brandability, and for what they can do to increase the visibility of your online presence. A domain that succinctly describes a product, service, or company is inherently valuable, as are domains that can be used across multiple markets or industries. If a generic name isn't what you're looking for, unusual names and word combinations are also popular. These may not describe a product, but they are memorable and can be molded into lasting brands.

High-quality domain names sell for thousands, tens of thousands, even millions of dollars. Quality domains are becoming a hard item to find, with their values increasing year over year. The descriptive nature of a good domain is crucial in determining its value and potential impact on a business.

Candy.com and Cars.com are excellent examples of generic, yet descriptive, names. Consumers interested in buying candy or looking for cars may intuitively type these names into their web browser. On top of that, it is extremely easy to remember Candy.com. The simplicity and directness of such domain names contribute significantly to their value.

Roku.com was an excellent name acquisition. In a vacuum, Roku doesn't mean anything. The domain name, however, is short and easy to remember, and through branding, Roku has established itself as the household name for streaming movie and television programs over the Internet. When you think about it, many major brand names did not have much of a meaning before they were created, such as Twitter, Netflix, Roomba, or the NFL. Yet over time these companies have become household names, demonstrating the potential value of unique, brandable domain names.