The importance of extensions in the valuation of doman names

 

Because of the penury of domain names, new extensions are created each year. However, regarding domain name values, .com is far ahead any other extension. A major part of the valuation of domain names comes from direct navigation. Domain names generate traffic per se, and this traffic has a value, comparable to the price to pay if one would want to purchase it with search engines. And regarding direct navigation, .com domains is the most powerful. Some country-codes domain names also receive a fair amount of direct navigation, and, to a lesser extent, .net domain names.

Historically, .net is the second extension and its price is generally between 10 % & 20 % of the the same .com domain. .net domains suit to almost any topic, but their value is higher when they are related to the internet. National country-codes such as .de, .co.uk, .fr, .it, etc. have different value according to the countries. But they are generally worth between 30% and 50% of the .com domain, provided that the language of the domain name is compatible with the country-code tld. The .de is a little different, as it is becoming also a generic extension, like .net, .org or .biz. This is already the 2nd most popular extension in the world, and most .de domains registered are now non-German domain names. The .org is worth between 10% & 20% of the .com, and a little more if the domain name is related to something non-commercial. .mobi, .fm & .tv have also a similar value, provided that they are respectively used for tv & radio programs and mobile phone users. The value of the .biz and .info can be worth up to 5% of the .com domain name, provided that they are respectively used for commercial activities & information purposes. The market for .pro, .ws, .cc, .bz, .vg & .to is much weaker and such domain names do not generally reach 1% of the value of the .com equivalent.

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