The size of your market is a very important factor to consider when selecting a domain for your business. The market size refers to the number of individuals in a specific market who are potential buyers and/or sellers of a product or service. Companies are always interested in knowing the market size before launching a new product or service in any area.
Directly related to market size is the financial component which would quantify how much money is spent (per year or quarter) buying and selling a particular product, group of products or service. It is quite common to break out those figures between online and offline. We have witnessed many markets shrinking their offline business while increasing the online business (newspapers, advertising, etc.).
When you think of any business domain, it is important to determine the market size, how much money is spent annually and what do the trends look like (steady, declining or growing).
Another key metric within the financial side is the average price for the product or service. For example, which of the following domains would you rather own:
The correct answer of course would be the first one in each of the examples. The only one that might give you cause for pause would be Homes.com vs. Boats.com. Everyone knows that some yachts can sell for tens of millions of dollars. However, there are some ‘houses’ that do as well. In this case, the market size for homes is much larger than for boats. At the same time, the average transaction for a house in almost any market is higher than the average transaction for a boat.
Sometimes if you take a chance on a domain describing a new technology, product or industry you could be in for a wonderful joy ride if it gets traction and grows the market. 20 to 23 years ago those would have been words such as eCommerce.com, OnlineBanking.com or Seo.com (Search Engine Optimization). More recent words include CryptoCurrency.com, BitCoin.com and Grafene.com.
Some words have been around for a long time. Think of the word ‘drone’. In 1935 the British produced a number of radio-controlled aircraft to be used as targets for training purposes. It’s thought the term ‘drone’ started to be more commonly used at this time. Now when we look at the ‘drone’ market, it has become a huge consumer product that has grown exponentially over the past few years as they become much more sophisticated, with better batteries and incredible performance. Drones.com was registered in early 1998 but the value of that name has gone up dramatically in the past 5 years if you just consider how many drones are sold online in each of the past 5 years.
Keep these points in mind the next time you consider buying a great business domain. Think in terms of how much money would someone make if your business domain led someone visiting your website to buy a house, car, boat or drone and then multiply it by how many transactions per year it could generate.