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How are premium domains valued?

Like many things in life, premium domain names are worth exactly what someone will pay for them. There are no precise and definitive valuation criteria. Branding, market size and growth potential are often key factors in determining value.

Undeveloped Premium Domains

Some premium domains have not yet been attached to commercial websites. These undeveloped domains may include all of the requisite qualities for success: marketability, uniqueness, clarity, memorability and the important .com extension.

If these domains were real estate properties, they would be highly valuable, perfectly positioned parcels of land. When one of them becomes available, it presents a rare opportunity for investors.
WolverineNation.com is an undeveloped premium domain.

Developed Premium Domains

Most premium domains have already been developed with commercial websites and optimized for search engine visibility. Traffic metrics for these sites are available through sources such as Alexa Internet and Google Analytics. High traffic rankings may contribute to the value of a developed premium domain.

The ownership of developed premium domains tends to be transferred only when the company behind them changes hands.

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