What is the value of a domain name?
How much should you pay for a domain name? We hear this question all the time. If it is your first time buying a domain name it’s understandable that you don’t know what to expect from a domain name quotation. To give you an indication: we usually sell our domain names for several thousands of euro’s. However, prices may vary drastically. To prevent any unpleasant surprises, we’d like to explain how we determine these prices and why we think these prices warrant the investment.
People have been free to claim whichever domain name they want for over twenty years now. Because the demand for domain names has always been immense, most domain names that can be classified as strong or premium have already been claimed by someone. This means you cannot freely register this domain name anymore. Your only option is to buy the domain name from its current owner. This makes all the difference.
Buying an occupied domain name from its owner often means you have to prepare for a serious pricetag. It’s hard to compare the price of an occupied domain name with the price of registering a vacant one, since this usually only costs a couple euro’s per year. At the same time, the value of a premium domain name is much higher. It is an investment you can get a return on rather quickly.
The value of a domain name is determined on a case-by-case basis. In contrast to what some people might think – it is definitely not a shot in the dark! Depending on type of domain name (is it an abbreviation, a first or last name, a brand name, etc.) we try to weigh many factors before we get to a realistic price, in line with the current market. We keep a very close eye on the going rates in the field, for our transactions and our competitors’. We also track the traffic a certain term generates and how many advertisments are active through Google regarding that term. If we’re determining the price for a (last) name, we first research the spread and popularity of the name. By checking a multitude of factors like these for each single domain name inquiry, we can guarantee a fair and market-level price.
Purchasing a domain name is an investment worth making. That’s not just something we claim, but it is something we often hear from our customers. A strong domain name not only helps you build a more professional and trustworthy (online) image, but it also leads more traffic to your website. A relevant domain name is an important factor in search engine algorithms such as Google’s. Additionally, a good domain name helps you stay top of mind: people tend to find their way (back) to you quicker if your domain name is easy to remember or simple to type in. This leads to more traffic, which means extra profit and more success!
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