While on google search, I found this image, simply put, a domain name is an address on the internet, it tells your customers where they can find you.
In the real world, the physical address of a business place helps us navigate and find what we are looking for.
Furthermore, in the real world, real estate is priced higher based on accessibility and scarcity.
Accessibility : Let's understand accessibility, in a shopping mall, the brand or brands placed at prominent spots within the mall get the most customers, domains are similar, on the Internet, domains bring in better business based on their quality, for eg, Shoes.com will have better traffic than BuyShoes.com, which will have better traffic than ShoeStore.com, which will have better traffic than ShoesInMumbai.com and so on.
Scarcity : is something people are always fascinated with, if something is scarce it becomes valuable according to humans, in the real world, land is scarce and hence people buy property in an effort to secure as much of this valuable asset for future use, in the digital world, a good domain name is equivalent to premier land, good domain names are scarce.
The following characteristics make a domain name valuable,
- Is it short (3 - 9 chars), shorter the better
- Is it memorable
- Is it pronounceable
- Can the name be typed in a browser easily
- Is it descriptive or brandable