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Domain name valuation and selection
In June 1999, 43% of all 4-letter *.com domains were registered.  Based on an Open Veld survey of October 1998, only 14% of these same 4-letter *.com domains had been purchased.  Knowing that short domain names are in short supply probably further increases their demand.   Pressure is also extreme on domain names that can be found in an English dictionary.  For example, among the 456,976 possible combinations of four letters, less than 25,000 have any meaning.  Probably no short (7 or fewer letters) names are unregistered.  The statistics do not matter if you can find the appropriate domain name for your business.  But predictions are that there will be 100 million domains registered within 24 months.  Do you expect that yourcompany.com will be still available?
Key points:
Is this domain available?
. com
net
org
Cdomain v2.3 (C) 1998 J. Allen Hatch
  • A top-level domain name (e.g., www.your-name.com ) is a
    potential marketing advantage.
  • There is a virtual unlimited supply of top-level domain names,
    even for the highly coveted *.com
  • You probably won't get your first choice, or even your hundredth
    choice, especially if it is eight letters or less.
  • If you think you might ever set up a business web site, the best
    time to get a domain name is now.
   Prices for hosting
Distribution of *.com domain names
 All names Meaningful
(e.g., words)
Name
length
Total Not
registered
Total Not
registered
  3 letters     18,000   < 200   1,000   0 ?
  4 letters   460,000   400,000 25,000   0 ?
  5 letters 12 million   10+ million   ?      ?
Statistical estimates based on a random
sampling by Open Veld (Oct 1998)

Location is a factor in marketing.  At the beginning of the 20th century, stores found it desirable to locate near Main Street and Broadway.   Central location brought steady traffic.  Mid-century, that seemed to change, with suburbs and the analog metaphor of today's internet, the shopping mall.

Location is actually more important than ever before, in the context of your domain name.   Your business on the internet has no physical location, thus your address can only be found electronically.  Customers will never see your internet presence without your electronic address, and since most will not remember or understand the numerical IP address, the domain name is an excellent way for them to find you.

Many customers will link to your business site through friendly referrals, such as links from search engines.  Once they have (hopefully) put your web site in their bookmarks or their favorites, they will not necessarily need your domain name again.  But unless you are satisfied with depending on electronic referrals only, your domain name is critical.  Potential new customers will see your name on a billboard, in the newspaper, or on a business card, and they will type it into their browser window and find your products and services.  The shorter and easier it is to remember, the better.

A domain name also provides an opportunity for brand recognition.  Businesses with meaningful domain names are the ones that convey seriousness and permanence.   Consumers who visit http://www.gate.net/~stars/dealer1432/cyberpunkrecordz/recordingslist.html may have the same feeling of security when they visit a repair shop in someone's backyard garage, like maybe they shouldn't have brought so much money in their billfold.

The problem with top-level domain names, e.g., http://coke.com, is that they are vanishing.  Try a "whois" search whois (http://www.networksolutions.com/cgi-bin/whois/whois) for any meaningful 4, 5, or 6 letter word names, and you probably won't find any.  At Open Veld we conducted a whois search, the registrar of seven popular top-level domain names.  The results are presented in the Table above.

Our recommendation is that you try two-word combinations that evoke the nature of your business.

  
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