Domain Price And Valuation Fundamentals Explained

Domain Junction

How much does a domain name cost? Well, it could be as cheap as $10 per year or as expensive as $872 million. Domain prices vary extensively, and there are certain market dynamics that decide the price of a premium domain for sale. Before proceeding any further, let’s begin by understanding the Factors that decide the price of a domain.

 

Registries and Registrars

 

Let’s try to understand who sets prices for the domain names.

 

These registrars reserve premium domains for businesses through wholesalers called Registries who actually control each top level domain option or TLD. For example, Verisign is a registry for .com domains.

 

The registry sets the price that the registrar has to pay whenever someone registers on registry’s domain names. Some domains have fixed price set by the registry and Internet Corporation for Assigned Names and Numbers or ICANN, which serves as a regulator for domain names.

 

But ICANN doesn’t control prices of new TLDs like .news, .shop etc. These new domain extensions are subject to the open market rules of supply and demand, resulting in wide price ranges. The registry that provides the TLD sets the rules about how much the registrars like DomainJunction can charge to register domains. Some TLDs set higher prices than others. For example, a “.car” domain is usually more expensive than a “.com” domain.

 

Look for the following while approaching a domain registrar for purchase:

 

a) There should not be any hidden fees

b) Registry should be paid upfront for the period of time you registered your domain for

c) The domain registrar should not sell your data to third parties

d) It should provide direct access to all your “Whois.com” records

e) Should promptly resolve all your queries.

 

Here are some of the most expensive domain acquisitions in history:

 

MM.com was sold for $1.2 million through Sedo in July 2014. It was purchased by Hangzhou Duomai E commerce Co. Ltd.

 

Electronics supplier Power Integrations bought Power.com for $1,261,000 to replace their old and simple domain PowerInt.com

 

DN Journal reported that CEO of Parked.com wasted no time in ponying up $1,500,000 when he won Cameras.com in an auction in 2006.

 

Few more most expensive publicly reported domains include the below ones:

 

1. Insurance.com                     $35.6 million
2. VacationRentals.com       $35 million
3. PrivateJet.com                   $30.18 million
4. Internet.com                       $18 million
5. 360.com                              $17 million

 

The most expensive domain name ever sold is reported to be is Cars.com, which is said to be sold at a whopping $872 million! Even domains with typos fetch good price. For example, cheptickets.com with wrong spelling of cheap tickets was sold for $200,000 in 2009.

 

The factors that affect the price of a domain include:

 

a) How the domain will be utilized
b) How different types of businesses invest differently
c) Size of the market based on the domain connection and meaning
d) Ranking in Google
e) Age of the domain
f) Penalties in Google
g) Brandability
h) The length of words, certain words or word combinations
i) Domain registrar discounts

 

Verifying Registered Domains

 

Not all registered domains come clean. So, before purchasing, look for it in all search engines to ensure that it doesn’t come with penalties it might have received while it was in operation.  You can even use Internet Archive tools to know which specific industry the domain belongs to and all the previous content published by it.

 

If you are thinking about buying a premium domain name for your brand or for resale purpose, DomainJunction offers an excellent platform to find premium domains for finance, premium domains for sports & recreation, premium domains for media, premium domains for real estate and many other industry verticals. The company was set up by Sohail Roshni in 2003 with an aim to provide top quality premium domains to businesses at highly competitive and affordable price. All our premium domains are reasonably priced, and most of them can be purchased with a couple of thousand dollars.

 

If you wish to book a premium .com domain for your business from DomainJunction, just contact us through http://www.domainjunction.com/contact-us/.

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