Important Considerations When Investing in a Domain Name

Domain names are fast becoming an asset forthe value.
thousands of worldwide investors and businessIf in doubt about the value of a domain name, industry
owners. A domain name is an easy way for people toexperts at Entrepreneur Domains provide online
locate a website on the Internet. For manydomain name appraisal services. There is a fee for the
corporations the names are becoming a brand in theirservice but it may be worth knowing a fair price when
own right and can be traded for additional valuebuying or selling a particular domain. As with any
because of the brand equity or goodwill they have built.investment, return on investment is an important
Some factors contribute to the value of a domainconsideration when trading domain names.
name before it is ever registered. Some names areThe Internet Corporation for Assigned Names and
specific to certain types of organisation or geographicNumbers, (ICANN) located in California is responsible
location. All are subject to the rules imposed by localfor governing the use of international domain name
governing bodies concerning the legal registration,extensions, which are those with 3 letters or more,
purpose and disposal of domain names. This article willincluding .com, .org and .info. Some domain name
provide a starting point to those who are interested inextensions are further separated to be country
purchasing a domain name.specific and are regulated by local governing bodies.
When you choose a domain name you will alsoAustralian domain names, such as .com.au are
register an extension, for example .com, .org or, .gov. Agoverned by the Australian Domain Name
discussion of all possible domain name extensions isAdministrator, (AUda) and cannot legally be traded in
beyond the scope of this article, however the mostthe same way as other domains. A .com.au name
commonly used ones are worth referring to. Themay only be transferred when a business is sold. For
top-level domain name extension, .com, is usually thethis reason, users cannot list a .com.au name or
most valuable because it is considered to be awebsite for sale on au.
"worldwide" commerce address and thereforePrior to purchasing any domain name, the buyer should
generates more traffic than a local name. Withalways check that the person selling the domain name
appropriate content a .com name is as applicable tois either an accredited registrar or the legal owner of
Australia as it is to the United States. The .orgthe domain name. To check legal ownership visit the
extension is intended for use by not for profitWHOIS database for international domain names,
organisations and the .gov name is for Governmentaccessible from Entrepreneur Domains and the AUda
departments.WHOIS database for Australian domain names, which
There are cases when a country specific domainis accessible from the AUda website.
name is more valuable to the user than a .com name.Finally, before purchasing any domain, the user should
For example a pizza shop that wants to offerlook at the date of registration by the current owner. If
deliveries Australia wide would be wise to purchase athe date of registration is less than 60 days old the
.com.au name, specifically intended for commercial useuser should not buy the domain yet as it cannot be
in Australia. When a user searches a popular weblegally transferred during that time. The user should
search engine such as Google or Yahoo, they mayalso ensure the domain is not ready to expire or they
select a box to display results only from Australia. Incould be facing additional charges to renew the name.
this case the .com.au names would be displayed butThis article is by no means an exhaustive discussion of
not the .com names.what to consider prior to purchasing a domain name. It
Domain name length and word count also contribute todoes provide general guidelines to start trading
the value. Rule of thumb is single word domain namesdomains and websites. It is recommended that users
are worth more. Shorter is better. Like everything thereseek further information from their accredited registrar
are exceptions to the rule. Consider the amount ofor the regulatory bodies discussed above.
people that might look up a celebrity name afterAlthough this article is written in good faith and is
viewing a news item. is likely to be as valuable asbelieved to be accurate, no such guarantee is made.
although the latter is shorter.No part of this article should be taken as specific
In most cases hyphens or numbers can be used asadvice.
part of a registered name but these mostly decrease