Domain name value is not simply a matter of metrics or specific characteristics of the domain itself.
Simply put, while .com domains, short domains, and dictionary domains all hold “de facto” or intrinsic value, the domain itself needs further validation of its value.
How is that achieved?
According to domain investor Andrew Rosener who stakes “first use” of the term, a domain’s worth is established via use in culture and use in commerce.
These two socio-economical channels determine how well-known and used is the domain in cultural and financial terms.
“Very similar to the relationship between search volume and the value of an exact match .com domain name. Been saying it for many many years. Adoption drives value. Search shows adoption rate, use in commerce & use in culture.”
And there you have it: domain name valuation is a live model, influenced by the people’s perspective, adoption, and use in culture and commerce—not just a matter of computer-generated metrics.
This is the reason that automated domain valuation tools fail to determine domain value accurately.
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