StartupStud.com conducted an interview with Sedo, on topics such as what determines a domain’s value, how should an entrepreneur go about getting the best domain ? .Com vs new gtlds when it comes to value and sales data.
A couple questions from the interview:
StartupStud.com: What are the primary factors that determine a domain’s value?
Sedo: A few of the major categories we take into consideration when placing a value on a domain are the TLD, length of the domain, linguistic suitability, and branding/commerce potential. When providing appraisals on particular domains we also always look to comparable sales data, which can be one of the most helpful indicators of a domain’s value in the current market. As with the real estate market, the domain market is constantly evolving.
As such in the domain world, when seeking a valuation, you want to have the most current sales data to support any values quoted as a fair market value.
StartupStud.com: Are .com’s still the most valuable TLD? If so, do you see that being the case for the foreseeable future? For how long?
Sedo: .com names are still, by far, the most in demand domain name and our expectation for the foreseeable future is that it will stay in this position. Our current market data puts the average price of a .com name at $4,701 while the next highest selling TLD is .net at $1,429. .com is still the TLD that can be used for everything and has the broadest use case although names such as .web, .site and others have good potential, too.
Strong arguments can be made for using the new TLDs such as shortening existing lengthy domain names with the use of the a new TLD or also using one that is more relevant and targeted for your business such as .club, .bar, .shop, etc. It is for the most part too difficult for the new names to compete on the same level with .com in the near future and in all fairness comparisons between long-standing TLDs and the new names should be withheld.
Benefits to using a new GTLD is coverage of a vertical or a geographic area or anything else that further clarifies what your website and business are all about.
Read the full interview on STARTUPStud.com
