About Valuation
Generally short names are more valuable and easier to remember. However, a domain name that self-explains the nature of the business is the best. Words and terms can confuse the criteria for valuation. One has to understand the business model before meaningful valuation can take place.
One needs to understand “search” and the psychology of search marketing on the human mind. The notion of short names being better is generally understandable, as early on non-marketing and non-psychological thinking humans established the criteria for valuation, but in the real world frequently preconceived notions fall short when it comes to psychological marketing. Creating the business model perception in the mind is the goal.
Nothing is more powerful than having the very words in the domain name that a person might be thinking of to put in the search string. Is Ice Cream Parlor three words……”no” icecream goes together. Some words are single thought phrases or terms in the mind. There are terms like Help Wanted that do not appear to the mind as two separate words.
Having a word string that completely describes the activity is the most powerful wording one could have in a domain name.
A good example of a great domain name is AutoMakeover.com……….2 or 3 words? The word “auto and the term “makeover create a complete thought.
If one studies the listed domain names with the business model in mind the valuation makes sense. The owner will be glad to discuss the business model details with the potential buyer.
When building a business around a domain name always try to own the similar domain names that your competition could buy. This heads off a competitor accelerating a similar business by feeding off your marketing and your domian name. Don’t make it easy for a competitor to clone a business model like yours.
Amazon is a good example of a word that meant nothing other than a river or area when first used. Nobody would have selected Amazon for a giant reseller of everything, but branding and the arrow under the name going from A to Z gives the psychological meaning of the word…………..selling everything from A to Z, but it is never mentioned or explained. It took tens of millions of dollars to make Amazon a household name. Using a domain name that self-explains the business model is the most economical and fastest way to accelerate cash flow.