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Domain names are the virtual equivalent to real estate, with values ranging anywhere from a few hundred dollars to millions. Although it is generally understood that a domain name is essential for online business success, many often ask the question “what makes some of these domain names so expensive?” 1. The Top-Level Domain The first factor to consider when trying to ascertain the value of a domain is the domain extension. To date, ‘.com’ remains the most recognizable and popular option for a domain extension. Other alternatives are becoming increasingly popular such as .org .net, .us, .ca, .co, .cn and .eu. However, ‘.com’ remains the most trusted and memorable over other top-level domains. A URL people remember, and of course trust, is more likely to get clicked on, viewed, shared, and it’s easier to build a brand with. 2. Length The next thing to consider is the length of the second level domain. A general rule of thumb is that the shorter the SLD is, the higher the value. This is simply due to the fact that it’s the most memorable part of your URL. It is also easier to read, quicker to type and better fits onto your business’ marketing materials. Given this, domain names that are six letters or under, are in high demand. However, many of these domains have likely been taken for years or have a dollar value attached to it that is well into millions…making them very hard to access. 3. Keywords Several top brands have second-level domains which contain popular keywords or phases about their business, product or service. For example, the top-ranked website for the search inquiry “hotel”, is www.hotels.com. Including the right keywords in your domain name contributes to strong SEO and ultimately, increase the value of your domain. 4. Branding Many of the most visited websites have clear, memorable, and unique domains, such as twitter.com and uber.com. It is a known fact that domain names which are catchy and easy to remember add branding value. It's not just your typical dictionary words either. Brand names, product phrases, and clever plays on words can all be extremely valuable depending on who it is linked to. A new product, brand, or innovation hitting the scene can skyrocket the value of a domain name related to it, even if it's been sitting parked for years prior. Who would have thought the random letters I&G or F&B could be so valuable? 5. Popularity and Traffic If a domain name is currently being used, the level of traffic that site receives is also a contributing factor in calculating the domain’s worth. The older the domain is, and the closer it is linked to a keyword or acronym, the more value the domain is likely to have. So, now you have a better understanding of the value of domain names, isn’t it time you found out how you can secure one for brand? Having a great brandable domain is a key factor to success, but as we can see, the value of great domains can sometimes make that dream seem out of reach. Entrepreneurs are used to registering really bad domains when they start up their businesses because most great brandable domains are too expensive or taken. Not anymore. The domain leasing platform Venture.com, was created so that businesses and startups are no longer limited to the shrinking pool of unregistered domains to have for their online presence. Venture invented the digital lease for this digital age. Check out venture's domains page to see if we can help you build your brand with a premium domain.