It is no wander that short domain names are valuable, especially .com/.org domains. You can easily verify this by looking at recent sales history, actions, number of bids on backordering services. But should you buy them? And how do they compare with keyword domains?

Many early stage domainers, including me, easily become attached to short domain names. And because as an early stage domainer, most people want to place safe bets, they go after short domain names. While this may be true in some cases, it could easily kill your domaining career before you had a chance to even get started.

 

Don’t get me wrong, short domains are great investments, even 4 letter ones, but in my mind, unless you have a buyer lined up, short domain names are long term investments. And they can easily eat-up all your cash, not leaving you much to invest in other domains.

 

Here are 5 reasons why short domain names are bad investments when compared with keyword domains:

 

  1. Not much value with Search Engines – most search engines are keyword driven, and most 3 letters just bring up way to many results and because of that, it’ll be much harder to even be placed in top 10. So exact match search is usually no good with these domains.
  2. No Development value – when I buy domains, I usually have a plan B. Even if they don’t sell, you should be able to develop them into a income driving websites. I am not saying you can’t develop short domain into a website, but it doesn’t add much value to it. You could’ve probably used any other domain for that particular website, and probably the result would’ve been the same. On the other hand, keyword domain will not only gain the love of search engines, but it’ll also give brand recognition with your customers.
  3. Not easy to remember – yes, it’s short, easy to type in the url bar, but will your customers remember it. Most short domains are easy to remember, ei ABC, CNN etc, they are already major brands. You are going to be left off with some uncommon 3 letters that wouldn’t necessarily click with your customers unless you already own the major brand. On the other hand, keyword domain is much easier to remember if it ties into your product/service, even if it’s longer to type in.
  4. Trademark issues – most people forget to check on these, but it’s easy to get a TM on short domain that doesn’t mean anything by itself, hence creating bigger issue for you the domain owner. While this is also true with some keyword domains, however, for generic keyword domain, it’s much harder to get a TM.
  5. Too expensive – yes, I think they’re too expensive for domainers. While 5-10k maybe pocket change for the big guys, or the end user, it’s a lot of money for a domainer to take on this much risk. You can easily use that money to get 5-10 good keyword domains from auctions. You’d have much better chances with 10 keyword domains when it comes to flipping them.

 

 

So next time you have that urge to bid on 6k action for some LLL .com domain, stop again and think what you’re going to do with it.