A few years ago, a good domain name was not worth much. A few hundred dollars ot thousnds would have found you a short, brandable, memorable, gem of a Domain Name with quite a bit of development potential.
But not any more, and with good reasons.
- Online Real Estate is being snapped up at an incredible rate, and the most marketable domain names and premier extensions like .com .net and .org are all but taken.
The demand is high and supply low, so the rest is just plain economics.
- In this scenario, if you need a particular domain name for your business you might have to pay out a big sum to get it.
- A great domain name goes a long way towards establishing a sizeable web presence.
- The topmost domain name on your Most Wanted Domain list possibly epitomizes all that your brand stands for, can be easily designed or fit into a logo, and possibly already gets a lot of traffic.
All this translates into a high price, and it is a price astute corporations are willing to pay.
- Some of the better known examples of domain names that sold at exorbitantly high prices are Diamonds.com(US$ 7.5 million), Business.com(US$7.5 million), Beer.com(US$ 7 million) and Men.com (US$ 1.3 million) .
- These names fetched a lot of value because the buyers were willing to shell out some serious cash to be able to control the kind of brandability
and extremely high traffic potential these sites can fetch them. Stable and legitimate search rankings inflate the price of a good domain name.
- The potential loyalty of user base and the their lifetime value is another important factor, because if a domain name already attracts loyal
visitors on a regular basis it will never want for traffic or ad revenue.
A good domain name that attracts traffic is also easier to develop into a flourishing website, and the asking price would naturally rise proportionally.
- The corporate world has begun to see the value of internet advertising which is prospering due to an explosion in the number of internet users and
the burgeoning popularity of online shopping.
A potentially huge targeted audience can be reached, especially through avenues like Google Ads.
This awakening towards the potential of internet advertising has further pushed up the value of domain names.
- With the internet increasingly taking a larger part in urban life, good domain names will continue to be snapped up at high prices.
Just as a good location is great for the sales at a shop, a good domain name is practically indispensable if you want a fabulous website.
It is this that sums up the high demand and the resultantly high price of a good domain name.