DFIN Domain Grades

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The Future of Digital Real Estate

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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

Digital Real Estate Links



The Power of Domain Names 
Domain Name Investing - The Critical Future Asset

Domain names represent an untapped asset class that can diversify investments and reduce portfolio risk

Investment assets are usually evaluated using a grading framework. The DFIN Domain Grading System is currently in development with the goal of making domains more attractive to both institutional investors and family portfolios. I believe that by instituting a formal grading system, we can standardize the valuation of domains and promote broader ownership—a strategy that is likely to extend into every facet of digital real estate, especially as the Metaverse continues to evolve.  (As disclosure for this article, I own a few of the examples represented.)

 
Most Recent Updated Version = June 2, 2025
Feedback is welcome from domain investors to further refine the "Valuation & Demand Characteristics" of our table. Please send your comments to GLE@DFIN.com

 

The "DFIN Domain Grading System"

Suggested Updates, Changes or Improvements Are Welcome
Send To
- GLE@DFIN.COM

Copyright © 2025 DFIN, Free to Use if 
"DFIN Domain Grading System" is Referenced

Partial List of Expensive Domain Name Sales = Wikipedia


General Comments

  • AAA domains will be the most selective, with the fewest qualifying entries.
  • NR domains will be the most prevalent
  • Market demand fluctuations influence domain grading. For example, if an NR or graded domain is acquired and later, an unrelated company uses the name without purchasing the domain, the company's success can elevate the domain's value. Consequently, the domain will be reassessed and may be upgraded to AA or even AAA status.
  • Purchasing a portfolio of Domains strategically, for a long-term investment can be rewarding in an economy where Digital Real Estate will become a more significant senior asset class.
Valuation & Demand Charecteristics Grade/
Example

AAA

A Very Successful Existing Business is the Buyer - the Domain Was Owned By Others Before the Business Became a Big Success

Important NOTE: The Domain Could Have Been Originated At Any Grade Before Business Success


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

Rocket.com

FB.com

360.com

Chat.com

Ai.com

NFTs.com

 

AA

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 Like Tesla or Rocket

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

Files.com 

 

A

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

The Key is That It Matches an Existing Business Name, Brand or Product

  

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. 

 

A new potentially fast growing A-rated company has the potential to evolve into a highly valuable AAA enterprise.  In fact any Domain can become AAA if a powerful business happens to use the name but doesn't own the Domain.

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

A

TP.com

DFIN.com

FFSN.com


BBB

A BBB Domain is a Domain with exciting potential, probably short, easy to remember and hard to forget, sounds good, looks good, and it is most likely in the dictionary.


A Good Brand or Product Name for a high volume and high profit or service business,  i.e.: Car or Cars


Commonly Used Phrases and Call to Action phrases, also known as an exact match Domain, can fit as a BBB. (Examples, PetSales.com or UsedCarSales.com
, HappyHour.com, RentAJet.com


SEO Keywords like Ai.com or Chat.com started as BBB that later became an AAA










BBB

Slots.com/

Voice.com

Filed.com

Diamond.com


healthinsurance.com




 

BB

A Good but Lower Profit Potential Product or Service Name

Cars is a BBB and is a Bigger and More Profitable Market than Bagels.  Bagels.com is not as profitable and has a more specific niche. 

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, i.e.: multiple related Domains similar to Goat Foods.

Four letter .com domains like XYPB.com are very liquid and have good investment potential. The Four Digits are key to the value and liquidity characteristics.

Single Word, IE: Bagels.com sold for $500,000 to Tribute Baking Company. A large group of these relatable names (Domain Farm) could Price as a BBB Grade or higher.

BB

Bagel.com

We.com

z.com

 


B
Longer Domains or phrases that may or may not be in Dictionary and Should Be Brandable. What was Facebook.com Before It was Branded?

AsSeenOnTV.com is a longer Domain, but definitely recognizable. 

DFIN likes a new "Green" name that can be branded  for either Fuel or Food:
Straightveg.com

B

StraightVeg.com/

MiamiNews.com

 

C

Longer Domain Name, not good or bad, but may only meet a small niche. OK but not special or exciting.  Not a common phrase.

Long or short word that is Confusing or Cumbersome

Nothing to Get Excited About, However Could Become a Winner in the Future Depending on Future Business Use

Example:  vimbux.com

 

C

 VimBux.com

Trendscout.com

Gorditas.com

VisualScience.com

NR
Non-rated Domain is everything else: -  A non-rated Domain could prove to be a winner but the probability is very low or a bad Domain with no immediate purpose, that will most likely expire.
NR

46jgw92k.com

Penisland.net

Wintersexpress.com
Other top-level domains like .ORG, .AI, and others will be defined and valued independently, separate from the .com market. Although our grading system applies broadly—from AAA to NR—current market dynamics give .com domains a premium. Over time, however, as alternative TLDs begin trading with higher volume and consistent pricing, we expect a Grading System to be put in place.
 
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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