So you have decided to go ahead and buy a domain name for yourself? The next course of action will naturally be delving into factors such as the cost and pricing of the new domain name. While there is no scientific method to determine the precise value of a domain name, as with any other type of shopping there are certain considerations that need to be understood and researched before you put down your money.

Valuation factors

These factors determine the true worth of a domain name. Once you get the hang of the jargon involved you can negotiate your way around them quite easily to fix the value of the domain name that you want.

One of the most important valuation factors is the top level domain. It is just an extension that appears at the end of a domain name such as .net, .org, .com etc. But it is important in directing traffic to your site and so will figure prominently while fixing the price.

The number of words in the domain name is another valuation factor. A single word domain name carries more clout as compared to the two or three word domain names. However, this will also depend on the type of business.

The extent to which the domain name can be monetized will have a great impact on its pricing. Domain names related to industries that cannot generate enough revenue are usually priced less.

Generic domain names have more value as compared to the non-generic ones. A generic domain name contains only real dictionary words and has the ability to drive more traffic, in comparison to the non generic domain names.

The extent to which the domain name can be branded also helps in determining the worth of the domain name.

The size and profitability of the market to which the domain name applies is another important valuation factor.

Keeping the above valuation factors in mind, you can get a reasonably priced domain name. Now that you know how to quote a price for a domain name check out what you need to decide before you buy a domain name:

Determine your domain name strategy or how you are going to use the domain name to your best advantage.

Think of all your domains as a capital investment and strategize accordingly.

Be careful and check if there is an unpleasant back history especially when buying old domain names.

Calculate the transfer fees. They may not be much but you have to budget them in as well.

Will you need domain name locks to protect you against domain slamming by illegal companies? Actually it is a good idea to do so as you can safeguard your domain and the traffic it generates for you.

Just like shopping for anything else you need to follow both your heart and mind while picking up a domain name. After all it represents your business and a part of your self.