“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.

1 COMMENT

  1. 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!

  2. 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.

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