Short names and acronyms bring big value in the marketplace for premium domain names. At GoElite Auction, we know how difficult it can be for people to understand what distinguishes a premium domain name capable of yielding top dollar at an auction from a domain name of significantly lower value.
Acronyms are formed from the first letters of a series of words. Acronyms are frequently formed from the names of organizations and companies. Some common acronyms include the following:
- • NRA for the National Rifle Association
- • FBI for the Federal Bureau of Investigation
- • MIT for Massachusetts Institute of Technology
- • UCLA for University of California at Los Angeles
- • CEO for chief executive officer
- • USPS for United States Postal Service
Perhaps because they are easy to remember and just as easy to type, people in the market for domain names pay more for those that include acronyms. Two letter domains, such as AA.com, and three letter domain names bring a high price at auction, and they also increase in value making them suitable as a long-term investment vehicle.
The ability of people to remember a domain name is high on the list of factors driving up the value of a domain as an investment. If you look at the list of some of the most popular websites, none of them exceeds six letters. Google, Amazon, eBay and Bing are incredible popular websites with short, easily remembered names. A shorter name makes it less likely people will misspell it or commit an error when trying to type it quickly into a search panel.
Although short names and acronyms might be popular, too many letters can reduce the value of a domain name. It goes back to the memory factor. Many commercial enterprises want a domain name that people hearing it only once will remember, so keep that in mind when trying to place a value on a domain.