Two-letter domain names such as RD.com have a significant value to both domain investors and end-users. In general, two-letter .COM domains such as RD.com are currently worth in excess of $500,000 with many names reaching the $1 million or more mark.
Why is RD.com valuable?
Why are two-letter .COM domains such as RD.com so valuable? Well, let’s take RD.com as an example here. RD.com is one of just 676 two-letter .COM domain names that are in existence. There are over 127 million .COM domain names registered, which means RD.com and the other two-letter .COM names represent just 0.0005% of all .COM domains. Rarity makes RD.com a highly valuable name, especially to investors who pay top dollar to own the world’s rarest names.
There’s also the question of trust and stability. By owning a domain name like RD.com for your brand, you are displaying a sense of trust to your customers or clients. As a consumer, would you trust RD.com or official-RD.com more? The right domain name gives an instant sense of trust in a brand to anyone who visits the domain. A sense of stability and permanence also comes from owning a domain name like RD.com. It shows a long term investment in a brand.
A two-letter domain name can also offer a company some security from data and traffic leakage that is commonplace amongst longer domain names.
These factors, and more, are why RD.com is a domain name that would likely fetch $500,000 at the very minimum. These factors are fine in theory, but let’s take a look at some examples of two-letter .COM sales to back up the overall value of RD.com and two-letter .COM’s in general:
Real world usage of domain names is a key indicator of value, which is why we have put together a series of small case studies below. If several companies spend six, seven or even eight-figures on a two-letter .COM domain name, it demonstrates clearly that two-letter .COM’s play an intrinsic value in the online brand of savvy businesses. Read our case studies:
The XA.com domain name was acquired in 2019 for a reported .79 million, although this has not been independently verified. The name was acquired by a Chinese agri-tech company called XAG, who made the decision to upgrade to XA.com from XAG.cn. XAG works closely with drone technology, and they certainly aren’t the first drone company in China to spend money acquiring a high-value domain. DJI spent six-figures to acquire the domain DJI.com.
Sleep technology companies have a history of paying vast sums of money for valuable domain names. The likes of Casper.com and Purple.com are both examples of this. However, there’s one sleep company that paid a large sum of money to acquire a two-letter .COM – Tuft and Needle. The popular mattress company doesn’t have the easiest name to remember, so the firm paid an undisclosed fee to acquire TN.com. As of writing, the name redirects visitors to its official website, tuftandneedle.com. However, the TN.com domain is used on billboards and in marketing promotions. When you’re passing a billboard in a car, are you more likely to remember TuftAndNeedle.com or TN.com?
Chinese company Weicai Technology dropped 8 million dollars to acquire the domain name We.com. I released the pricing details to the domain industry to record the second-highest publicly-disclosed two-letter .COM domain sale of the decade (2010-2019). WE.com is now used as the hub of a highly popular wealth management website. The acquisition was timely since it meant that The We Company had to settle on “we.co” as its official domain name.
These are just three examples of two-letter .COM domains that have been acquired and put to use by brands willing to invest significant amounts of money into their online identity.
Another means of getting a face-value appraisal for RD.com is to take a look at verified domain sales data.
Thanks to NameBio, we have been able to produce a list of two-letter .COM domain sales from 2015-2019:
TM.com – $1.25 million (2019)
IJ.com – $550,000 (2019)
RX.com – $1 million (2019)
OL.com – $900,000 (2019)
MK.com – $700,000 (2018)
FO.com – $510,000 (2018)
SW.com – $660,000 (2017)
HG.com – $3.77 million (2016)
DA.com – $650,000 (2016)
YK.com – $900,000 (2016)
LA.com – $1.2 million (2016)
TP.com – $929,000 (2016)
PX.com – $1 million (2015)
GJ.com – $694,095 (2015)
QT.com – $615,000 (2015)
QE.com – $554,000 (2015)
SX.com – $555,050 (2015)
WE.com – $8 million (2015)
RP.com – $575,000 (2015)
NL.com – $575,000 (2015)
I have performed a couple of interviews with the buyers of two high value two-letter .COM domain names for their respective companies. These represent real-world usage and give a clear idea as to why domains such as RD.com command such a high value. You can access the two interviews here (PX.com), and here (TN.com).
Working out the intrinsic value of the RD.com domain name (without any attached content, IP or other considerations) is a difficult process. Automated appraisals cannot be relied upon, and ultimately it comes down to the circumstances surrounding the acquisition or sale of the two-letter domain (with associated factors including motivation to buy or sell, the need for the domain, funding available, and current circumstances).
However, it can be easily proven that domains such as RD.com are highly desirable, and previous sales data indicates that the name would carry a six, seven, or low eight-figure valuation.
Do you own RD.com or a similar domain name? Do you have the budget to acquire a domain name such as RD.com? If you answer yes to either of these questions, you might benefit from speaking with a domain name broker. This article is purely research and I certainly don’t have any association with this name, but if you’re serious about buying or selling such a domain, speak with an expert who can advise you fully.