Why do Businesses Invest So Much in a Domain Name?
Profitable businesses understand that the degree of success in branding and marketing their business can be determined to a large extent by the domain name they choose. A domain name becomes a core part of the message conveyed and positively influences the perception of the potential success of the business and is a key factor in the client's decision to work together, so it must be chosen wisely! The right domain name should be short, descriptive and easy to remember. The right domain name will not only make it easy for people to find a business but it will also make it easier for search engines to find the website.
Choosing the Right Domain Name Builds Credibility Both Online and Offline!
Anyone can register a domain name for around ten dollars a year but don't expect to find a great domain name this way. Tens of millions of the best domain names were snapped up by businesses and forward thinking entrepreneurs in the last 10-15 years. In fact as of January 2012 it has been estimated that over one hundred million dot com domains have been registered! The domain name aftermarket is where many of the older and better domain names can be found if they are not already in use by businesses. Domains on the aftermarket can sell for hundreds, thousands or even millions of dollars (see our "Record Sales" tab on the homepage for many of the higher priced sales that have taken place). These high valued domain names are called premium domains because they usually sell for a premium. We have many category specific premium domain names that are for sale on our website and they can also be seen on our homepage categories such as Real Estate Terms, Cities, States, Loans, Financial and Business Domains. Using a premium domain for your website and your company's email address helps to establish credibility and professionalism. When a business selects a memorable premium domain and develops a professional website they indicate to potential customers that they are a legitimate, established and successful business.
Premium Domains Get More Website Traffic
Premium domain names are easier to remember and rank higher in Search Engines. As an example Bank of America purchased the domain name Loans.com over a dozen years ago for $3,000,000. They understood the value of premium domain names long before most companies were willing to pay that kind of money. Today the domain Loans.com would sell for many times the price B of A paid back in January of 2000. Another generic premium domain name that sold back in March of 2000 for $1,800,000 was Mortgage.com to CitiBank and PersonalLoans.com sold in February of 2012 for $1,000,000. We have many of the finest premium loan and mortgage domain names available today, such as FixedLoan.com, AdjustableLoan.com, SecondLoan.com and RefinancingLoan.com and many other premium domain names that were registered or purchased prior to 2000 (see our Loans tab on this page).
Domain Names are a Solid Investment
Similar to Real Estate, domains names are an investment. They increase in value over time, just as the Internet has accelerated the growth of many businesses faster than any other medium prior to the Internet. Domain names have increased in value faster than any other commodity in existence. A Premium domain name not only adds value to a business but it implies credibility and develops trust to the consumer. Those that understand the real estate business also know the single most important characteristic of real estate has always been location - location - location. For internet real estate the equivalent to location - location - location would be premium - premium - premium. The better the domain name, the better the location for your website presence on the Internet! Always get the best domain name you can budget for it will provide a foundation for your business for years to come.
Why spend thousands of dollars advertising key words on Google, Yahoo and Bing when you can own the keyword name for less and beat the competition by owning an entire category with a generic premium domain name and never have to pay per click every time someone is directed to your website.
There are many distinct advantages in owning premium domain names that were registered years ago, referred to as seasoned (or aged domains). These domains will rank higher than a domain that has been newly registered. Search engines such as Google, Bing and Yahoo look at the age of the domain, the length of the domain (shorter is better) and the quality of the domain to qualify for higher rankings and better placement. Because domain names are considered an investment, increasing demand has raised value over time and prices will continue to increase as the Internet grows out of its infancy. Your domain name is your front door to the world, it is literally an online storefront, and it makes sense to invest in the best "location" you can afford!
Dot RE is a Great Alternative for the Real Estate Industry
Dot com is without question the Gold Standard for Internet Domain Names. The challenge that many real estate businesses are faced with is that a premium .com can cost tens of thousands or even millions if it’s available at all, even .net and .org domains have sold for hundreds of thousands of dollars! Another problem with .com, .net and .org is that they are not industry specific. If you were to purchase a .net or .org it is very likely that you would loose a good percentage of traffic to the .com competitor with the same domain name!
The advantage of .RE is that it is exactly how everyone abbreviates the term Real Estate and it is specific to the Real Estate Industry. Using .RE will allow the acquisition of much shorter domains that are easy to remember, are industry specific and will cost significantly less than other alternatives. This will allow real estate firms to distinguish their brand by associating themselves with the .RE extension that specifies to their clients that they are in the real estate business. Many times as we search for certain subjects on the internet, we are given irrelevant information . The .RE distinction will allow searchers to know that they have reached the real estate results they are seeking. Since the .RE is relevant specifically to Real Estate it will greatly benefit those that understand how Internet searches work and where the Internet is headed in the future especially as it pertains to Real Estate!
Please do not hesitate to contact us if you find a name you like on the attached tabs. Our e-mail address is info@domainnameexchange.org.
The correlation between the series led Lindenthal to conclude:
The strong correlations of domain prices with the high tech economy and online advertisement revenues are re-assuring in two ways. First, they show that domain name buyers and sellers make economically motivated price decisions. Domain markets are not a cloud-cuckoo-land where dreamers trade esoteric goods at imaginary prices. Second, finding a link that is expected to be present based on economic reasoning confirms that the domain name index ‘makes sense’.
Here, however, is the bit we find the most exciting…
From a theoretical point of view, prices for Internet domain names should be the discounted future cash flows that can be generated by owning this domain. Domain prices are therefore forward looking, giving a indication of not only the current profits but include expectations about future opportunities as well. These expectations cover small and large Internet ventures as long as they share similar business models. This suggests that the domain name index can serve as a fever curve for the well-being of the Internet economy, considering also small enterprises that are currently excluded by stock-price based indices.
