Six Types of Domain Names and What They Sell For
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Six Types of Domain Names and What They Sell For


Did you know that there are six types of domain
names and each has a different potential retail value? I didn’t think so, but knowing so can make
a big difference in your investing success. Hey everyone! Thank you so much for joining me on today’s
DNAcademy podcast. My name is Michael Cyger, and I’m here to
help you become a more profitable domain name investor. Within DNAcademy, I teach about the six types
of second-level domains, or SLDs. They include:
1. Generic, like Apple.com or Rose.com
2. Exact Match, like CloudComputing.com or OfficeSupplies.com
3. Brandable, like Google.com or Spotify.com
4. Acronym, like Z.com or DATL.com
5. Numeric, like 123.com or 8855.com, and
6. Alphanumeric, like X3.com or 66G.com I wanted to know if one type of SLD was a
better investment than another, so I asked DNAcademy student Alex Chung to lend a hand
in data collection and analysis. Our methodology was simple: pull the top 100
sales out of NameBio.com for each type of second level domain for the years 2015, 2016
and 2017. And double check each domain name in-fact
matches each SLD type — generic, exact match, etc. By the way, the data can be accessed and downloaded
by students of DNAcademy inside each SLD lesson. Once Alex collected and verified the data,
we then tried to figure out how to present the data so it made sense. I thought looking at the mean and median would
tell us everything we needed to know — but in fact it didn’t. So I had to dig out my old college statistics
textbooks to figure out how best to make sense of the data. Turns out, a good old-fashioned box plot (sometimes
called a box and whisker plot) was the best way. And here’s the data. But before we look at all of them, let’s look
at one of them: the generic SLD type of domain name, like Apple.com or Rose.com, and let
me describe our analysis tool. Box plots always present the data in the same
way. The top of the box is the first quartile — which
means that 25% of the data lies above this number, and the bottom of the box is the third
quartile — which means that 25% of the data lies below this number. Therefore, 50% of all the data is within this
box. The mid point of the box is called the median
and means that 50% of the data points are above and 50% are below the line. So rather than look at averages of a data
set that can be skewed by extreme values like the $8.5 million sale of FB.com, we can get
a better representation of the data set and see exactly where most of the mid-tier domain
names are sold. It is this median value, as well as the top
and bottom of each box that we want to compare across the different types of second-level
domain names because that’s where the middle majority of sales happen. In other words, the whiskers on top and bottom
of the boxes are the extreme 50%, and the data within the box is more typical of results
you and I might see if we invested. So how do they look? Generic domain names like We.com. Fly.com and Freedom.com have a median value
of $107,251, and when we compare them to the other five types of domain names, we can see
that 50% of those generic domain names (from the median value to the top) are higher than
75% of all the other domain name types except acronyms. This is why generic domain names continue
to top the weekly DNJournal sales lists and are strong investment opportunities. Now, let’s compare Exact Match domain names
to Brandable domain names. Looking at the boxes, they appear to be pretty
similar. The tops of the boxes are within $2,000 of
each other, and the bottoms are within $10,000. But we can also see that the variation in
sales prices is smaller for Brandables like StarIndia.com, NextFoods.com and YouCoin.com
than it is for Exact Match domain names like UsedCarsForSale.com, YogaPants.com and CollegePrep.com. And, of course, the top 25% of Exact Match
domain names has a long whisker because some keywords have massive search volume, like
Porno.com and Home.loans. Acronym domain names are an interesting asset
class with a middle 50% that is much higher than all except Generic domain names. This is attributed to the fact that two-letter
domain names like hg.com, la.com and px.com have been on fire the past few years. Throw in a crypocurrency related domain name
sale like eth.com (the acronym for Ethereum), and you’ve got a big skew. In fact, if we remove the top 14 sales that
are all two letters and one three letter, the top of the boxshifts down from $192,000
to $132,000 and becomes a very narrow box, similar to Brandable domain names. Finally, Numeric domain names like 0123.com
and 8181.com and Alphanumeric domain names like w8.com and m33.com round out the asset
classes on a downward trend for retail sales figures. And here are my key take-aways: We can’t be experts in every type of domain
name asset class, but understanding that there are six types and that there are differences
between them — like the variation in retail sales prices — can help us focus and become
better investors. Generic types of domain names are the king
of the mountain. Because even new investors can hustle and
find good wholesale deals, it provides the best return on investment opportunity. Exact match domain names have fallen out of
favor in the past few years, but don’t count them out of contention. They took the top retails sales price between
2015 to 2017, and if you select your industry correctly customers can definitely see the
benefits. Brandable types of domain names are easily
the best opportunity for creative investors to start their investing career. While acronyms are skewed by the recent two
letter sales frenzy, their established floor and steady market prices provide a safe haven
for those with the budget and desire to invest long-term. Fifty-eight of the top 100 acronym domain
names in our research sold for six-figures plus, doubling the number of names of all
other categories except Generics, which acronyms nearly matched. In 2015, the Chinese-friendly domain name
8888 8888.com sold for $150,000, putting it 16th on the list and standing out among the
names around it. If you don’t understand the desire of Chinese
investors to own numeric domain names, like me, then I suggest you leave that type of
domain name for other investors. Same goes for alphanumerics, the lowest priced
category of the six domain name types, but with a average sale price of over $27,000
there is still real money to be made there. As I said, each of the six types of domain
names has a different potential retail value. Just knowing the six types and their retail
sales prices can make a big difference in your investing success. If you liked this content, if it helped you
think differently, or you received some other benefit from it, consider signing up for DNAcademy. All right. I hope you enjoyed this video and investing
tip, and I look forward to serving you in next week’s episode. Thank you so much for making the decision
to watch or listen to this show. My name is Michael Cyger and I’m here to help
you become a more profitable domain name investor. Please subscribe to this podcast, and I’ll
see you in the next episode.

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