DFIN Domain Grades

DFIN Finance - DeFi and Web 3.0
 
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The DFIN Domain Grading System
AAA - NR

Trademark + 4 Digit Domain = The Perfect Brand For Sale

Domains For Sale or Lease Option

Metaverse

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The Power of Domain Names 
and Domain Name Investing
Domain Names Are an Untapped New Portfolio Asset
To Diversify Investments and Lower Risk
Investment assets typically have a grading system. The DFIN Domain Grading System is being developed to broaden the appeal of domains to both institutional investors and family investment portfolios. I believe that by establishing a formal grading system, we can standardize domain valuation and broaden ownership —a concept that will likely expand into all areas of digital real estate, particularly within the emerging Metaverse
 
Most Recent Updated Version = May 19, 2025
Feedback is welcome from domain investors to further refine the "Valuation & Demand Characteristics" column of our table. Please send your comments to GLE@DFIN.com.

 

The "DFIN Domain Grading System"

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- GLE@DFIN.COM

Copyright © 2025 DFIN, Free to Use

Valuation & Demand Characteristics

Grade

Very Successful Existing Business is The Buyer - Before The Business Was Created and Became a Big Success The Domain Could Have Been Any Grade


A Name that Matches a Highly Successful and Rapidly Growing Business. Tesla is a perfect example.

A business recognized as an industry leader will seek a domain that aligns seamlessly with its brand, trademark, or company name. Domains that cater to consumer-focused businesses often hold significantly greater value.  – IE: Tesla.com, Rocket.com

AAA

 

Tesla.com

 

Proven Existing Business is The Buyer - A Good Business But Not a Tesla

A Name that Matches a Large Successful Business or Product but Not Explosive Growth Tesla or Rocket

 or

A reputable and distinguished business, mature or limited growth expectations, seeking a domain that aligns with its brand or company name.

 – IE: ICE.com $3.5 million Purchase

AA

ICE.com

 

New, Un-Proven or Existing Young Business Buyer With Good Prospects Wants The Domain

The Key is That it Matches an Existing Business

  

A Start-Up or young operating business seeking a domain that perfectly matches its brand, product, or company name. For an existing company the value of a Domain is directly related to profit and growth expectations. 

 

As demonstrated by the Tesla.com seller who held onto the domain for over 11 years. A new potentially fast growing A-rated company has the potential to evolve into a highly valuable AAA enterprise.  

 

- IE:  Two Examples, DFIN.com (unsold) or a small European public company, TP.com that sold for $1.2 million

A

TP.com

 

A Good Brand or Product Name, ie: Cars.com; like an A Grade but No Business in Place

SEO Keywords

Calls to Action, Common Used Phrases ie: PetSales.com

 

Good short, single word from dictionary or descriptive phrase – common use – brandable easy to read and spell, easy to remember, price varies with industry profitability potential – good, memorable, and easy-to-spell common phrase is good.  .  IE: UsedCarSales.com

 

BBB

 

A Good but Lower Profit Product or Service Name

Cars is a BBB and is a Bigger and More Profitable Market Than Bagels

New Business Match Product, Less Profitable Industry, Low Profit Margins, Buyer is a start up with Unknown Growth Potential and Industry Profitability - Brandable – More Valuable as Part of a Domain Farm  ie: multiple related Domains

A 4 letter .com domains like XYPB.com is very liquid and has good investment potential.

Single Word, IE: Bagels.com sold for $500,000

BB


Longer not in Dictionary but Brandable

What Was Facebook Before It Was Branded

OK to Read, Remember & Spell IE: vimbux.com

B

 

A Domain Name, not good or bad, but may only meet a small niche

A large group of these relatable names (Domain Farm) could Price as a BBB Grade similar to Goat Foods that purchased Bagel.com

C

 

Long word– May be Confusing or Cumbersome

Nothing to Get Excited About, However Could Become a Winner Depending on Use

 

NR


All Other Top-Level Domains such as .ORG, .AI etc. will be defined and priced independent of other TLDs. The Grade concepts above are valid but pricing today gives more value to .com. As an example, as other TLDs start trading in greater volume and at consistently higher prices, this will develop over time. .AI TLDs may soon have enough volume and popularity to have prices comparable to .com, we will always have AAA to NR but pricing will change for each TLD. This is where the Trademark becomes more critical. As an example, IBM.US or .CA could be owned by others but IBM would block the use.

Thanks To The Following Experts For Critique and Suggestions on Domain Ratings

Brian Harbin - Grit Brokerage - brian@gritbrokerage.com - https://gritbrokerage.org/





Contact: Gary Lewis Evans; GLE@DFIN.com; 858.210.0486

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LinkedIn Bio; https://www.linkedin.com/in/garyevans/


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