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Increasing values of short domain names
A quick analysis of recent sales in domain names show a rapid increase in values of short brandable domain names. What is the reason behind this? Is it just a trend or will this continue? These are just some of the questions answered in this article. Over the past few years we've seen a rapid increase in value of short domain names. We're talking about .com domain names in particular but this does also apply to other extensions including .net, .co.uk, .in (India) and many more. There are a number of reasons why the demand for such domain names are increasing: - Useful for acronyms for companies
- Can be very brandable
- Social Media / Web 2.0
- Less Supply, More Demand Back in the day when we all listened to radio, we were used to three characters representing the station. It was easy to remember. The same applies today when it comes to the Internet. Shorter names are easier to remember. 3 Letter domains are best used as acronyms (eg. FIS = Financial Information Studies or Future Investment Strategies) whereas 4 letter domains are used as combination of acronyms or for branding (when the name is pronounceable). 5 Letter domains are used more for branding than for acronyms. All 3 and 4 letter .com's have sold out... this is another reason for prices rising (supply & demand). 5 Letter .com's haven't sold out (and probably won't... at least for 10-15 years) but most of the good pronounceable names are all taken. As more and more people (around the world) come online the demand for domain names increases. With less and less shorter domains available to register the prices inevitably increase.
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Contributor's Note
We'll call this part one of this article as there is much to take into consideration. I've only touched on the very basics and looked at this in a very general sense. In part two we'll take a closer look at the types of short names and which are increasing in value the most and of course...why they're increasing in value. That's it for now.
Check out the external links for similar content.
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