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Studies & Opinions

Length of Domain Name Is Irrelevant!

Alex Tajirian
July 15, 2003

A number of domain-name appraisal sites use the length of a domain name in their appraisal model as one of the predictors of domain market value. Our empirical analysis indicates that length is insignificant in predicting the market value of a domain name.

Using a sample of 95 dot-com domain-name transaction prices obtained from eBay, AfterNIC, and proprietary data from our escrow service, we performed a number of statistical tests. The domain names in our sample ranged from 2-19 alphanumeric characters. Below are some of the findings.

  1. As expected, we found a negative relationship between the number of characters in a domain name and prices. However, a linear regression with length as the predictor is able to explain about 9% (R-squared of 0.09) of the variations in prices, while a log transformation of the predictor values yields a meager 11% R-squared.





log (length)


  1. A number of appraisers use domain-name groups as a predictor of Value. To test the explanatory power of such groupings, we divided names into groups of five, six, and seven characters. Thus, a five-character group would have domain names with 2-6 characters as group 1, 7-11 characters as group 2, etc. For example, “” would fall under group 2 within 5-character grouping. 

    As expected, we found a negative relationship between the groups and prices. However, the grouping variable was able to explain only about 6% of the variation in prices of domain names in our sample.

  2. Adding length to the set of predictors that we use, we found that a linear regression of the combined predictors does not add explanatory power. A linear version of our model explains approximately 81% of the variations. 
  1. Using a non-linear, tree-structure, discriminant-analysis regression technique (the primary modeling technique used for our appraisal services), we found a very minor influence of the length predictor — i.e., lower predicted prices for some domain names with greater than 9 characters.

Topic tags: appraisal/valuation

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