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I don't think domain name is as important as marketing. Take, for example, zappos.com. The name in itself means nothing. Yet it is near the top of the internet as far as traffic goes. They sell shoes. Shoes.com, on the other hand, has way less traffic and makes way less money than zappos.com
I think that a short name helps, but only to a very small degree. Not to say that some short, highly used words don't have some value, but a good marketing strategy can make an otherwise useless word into millions:
All of the following are in the top 100 internet sites:
Google
Ebay
Flickr
Orbitz
Xanga
Pogo
Icio
I think if (a few years ago) someone came in here and said "I'll sell you Xanga for $1000" that they would have had any takers.
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