What is a domain name worth?

A lot, especially fame name!

A domain name is your own cyber-estate. This estate, just like its physical counterpart, has its value depending on its address (name) also content. It's important how to type or spell your domain name. Good name has to be easy to remember and type. The extension matters! After dot com is still the best. It means commercial, global, world wide. Also .com is sugestive and simple. You can charge your visitors or give them a free tour, or run a side business as part of the estate by changing content but name is the name. The fame name! You must take care about your domain name. Why? Because it's only one for all over the world! Unique.

On a technical level, it is an addressing construct used for identifying and locating computers on the Internet. Domain names provide a system of easy-to-remember Internet addresses, which can be translated by the Domain Name System (DNS) into the numeric addresses (Internet Protocol (IP)) numbers used by the network. A domain name is hierarchical and often conveys information about the type of entity using the domain name.

Remember - domain name it is not the same as web site, or web page. It's only name without content, but searching results are depending on content. Domain name may have a web site or landing page, but may not.

Value of internet name. How much is domain name worth? There are some categories of reasons to buy a domain-name: business and communication address, investment, and vanity. For some domain-names all three reasons can apply.

1. Business & Communication: buy vs. lease.
An online business has two sources of value: its Domain Name and its content (developed Web site). It is safe to assume that businesses exist to make money. Thus, a business should compare the following two sources of value creation: (1) profit from buying an already registered "good" domain-name, say, for $25,000 in addition to the domain registration fees; and (2) creating their own domain-name for the registration fees, and, say, spending $25,000 in advertising. If profit from the former is expected to be greater, the company should choose that option. Thus, to value a name, think about how much additional profits a company can generate as a result of using the name. Other things being equal, this should be the maximum price a company would be willing to pay to acquire the name.

An alternative to buying a domain-name is leasing. One advantage of a lease, similar to that on a car, is that you do not need to come up with a large sum of up front cash. The terms, amount, and length of the lease is negotiable. Moreover, your lease can also stipulate your right, but not your obligation, to buy the domain-name at some point in the future. Domains with high PageRank are most wanted.

2. Investment.
As an investment vehicle, it becomes harder to estimate how much someone else would be willing to pay for an Internet domain-name. But that's one of the reasons why markets exist: to provide information about what a domain name might be worth to different people. For sure it is long term investment. Working domains get points for history as well.

3. Vanity.
Estimating the value of a vanity domain name is like estimating the value of "art." It is in the eyes of the beholder. Once again, the existence of markets become very important in determining "fair" values. Unlike a business address, for a name under this category its value depends on how much you are willing to give it up for, as it is impossible to determine how much someone else would be willing to pay for it. Auctions are probably the best mechanism to sell such assets. Yes, auctions are the best.

Current Status of the Market.
There are many domain appraisal and auction companies that provide a mechanism to bring buyers and sellers together and facilitates the transfer of ownership. I like Sedo. Here You can see my page. get However, you should keep in mind that the market is still in its infancy. NameDrive, Above, Bodis and more. It is not surprising to see it currently composed mostly of sellers who have and are still acquiring domain names as an long term investment instrument. However, there is great value potential in this market for all parties involved. I belive that.

Bill Gates, CEO & Chairman of Microsoft, has confirmed that domain names can be valuable. According to him, "it's not uncommon for really good names to fetch $5,000 or more. A media company paid $7,000 for search.com and $15,000 for tv.com. Every once in a while, a name sells for much more; business.com reportedly sold for $150,000."

What factors influence the selling price?
You should keep in mind that how much you can get for it at any given point in time depends on its worth, your negotiation skills, and how deep the buyer's pockets are. Accepting an offer depends on how much you need the offered money immediately, and whether you are willing to wait for someone to whom the name might be more valuable. Premium names, global top level are still hot. What about domain names with PageRank?

See also:
Top Ten Domains World!
My Sedo domain page
Premium Domain names Stories
Be Famous, Get the Fame!


web reputation
Rating for audiodrive.info