Is your domain name an asset or liability? The answer can be on either side depending on how it is being used and appreciated. Many people have considered buying multiple domain names as a form of investment. Domain names are like the location of a shop, for it is uniquely scarce especially if it is in good location, and in the case of domain name it should contain a highly ranked keyword for good value.

Much of the work for the domain’s value to increase depends on how it is being used for. This mainly circulates around the work from it’s contents of a website it is being pointed to. Most traffic of a website will increase in momentum especially when it is being updated with new contents regularly. Two factors on how to determine the value of a domain name depends on the keywords within the domain name and the number of searches it has.

The more number of searches and higher the bid of ads on that particular keyword, the higher it will be of value for. That is why you don’t find it easy to get a broad or generic domain name with single word or two, because it usually comes with high number of searches. The second factor is its traffic that it is pulling. Once a new site is up with it’s contents, Google would automatically start to index it’s pages based on keywords. As this happens, the momentum of the traffic increases.

The increase of traffic creates value for domain names that are pointing to that site because it generates a large database for advertising opportunities. Media buyers would be targeting at your domain simply because it’s able to generate massive traffic of visitors.

Does this cover one of the ways on how your domain’s value increases? Or are you using another methods?