"How Much Will That Domain Name Cost?” | DomainInvesting.com
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“How Much Will That Domain Name Cost?”

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When people find out I am in the domain name business, many are intrigued. It often leads to a long conversation about domain names and what domain names are worth. Occasionally, people will ask me about a particular domain name they want or need. “How much will that domain name cost” is a question I am asked regularly.

Unfortunately, there are many nuances that make this question very difficult to answer with any accuracy. The price of a domain name can vary depending on several factors, including the keyword, acquisition price, and comparable sales.

The biggest factor in terms of pricing – and probably the most frustrating one – is the owner of the domain name.

There are some companies whose domain names are priced fairly consistently. When I see a name owned by BuyDomains (for example), the price is likely reasonable and they will work with me on reaching a fair deal more often than not. When a domain name is owned by a private individual or a domain investor, the price can be anywhere from reasonable to totally batshit crazy unreasonable. I am sure prospective buyers may feel that my prices are high, but I try to be reasonable and am always willing to justify my prices with comparable sales if requested.

As a domain investor, it is great that a domain name can be acquired for a few hundred dollars and resold for many thousands of dollars. This makes domain name investing a lucrative business. As someone seeking to buy a domain name, it can be frustrating that there is relatively little consistency in domain name pricing and domain name valuation. When a friend asks me about how much a domain name will cost, I feel badly because it can be difficult to answer.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (2)

    Bill Sweetman

    As a domain buyer broker I spend a good portion of my early interactions with potential buyer clients helping them understand the vast price discrepancies between domains owned by a motivated domain seller (like Huge Domains) versus a relatively unmotivated seller (like Mike Mann). And then there’s the domains owned and in active use by end-users which may not be for sale at any price. As you’ve noted, the price a buyer may have to pay depends heavily on who owns the domain, and buyers should never assume they can get the domain. Always have a Plan B!

    December 28th, 2017 at 12:49 pm

    John

    This would appear to be direct or at least indirect threat to reasonable domain valuations and sales for those who sell or lease:

    “Keeping Copyright Site-Blocking At Bay: 2017 In Review”

    https://www.eff.org/deeplinks/2017/12/keeping-copyright-site-blocking-bay-2017-review

    “In 2017, major entertainment companies continued their quest for power to edit the Internet by blocking entire websites for copyright enforcement […]”

    Not to mention one of the reasons why I was so opposed to the “transition” away from US oversight, though nothing is guaranteed.

    December 28th, 2017 at 12:59 pm

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