Valuing Domain Names is much like valuing any piece of "intellectual
property" in that price is a difficult question to answer. The short answer is, an
Internet Domain Name is worth whatever someone is willing to pay, or sell it for. Domain
Names have sold for prices ranging from $70 to $10,00,000.
One reason for the increase in Domain Name value is the importance a Domain Name plays in
the ability for a website to be found and recognized. In the physical world it is common
for the success of a retailer or restaurant to be directly related to their location.
Hence the phrase, "location, location, location". On the Internet there are no
physical locations but rather sites are found and recognized by the address they choose.
Many companies today are even choosing the branding of their services or products based on
their ability to secure the appropriate Domain name.
Although Domains are valuable, ascertaining their exact value is more difficult. Because
most of the wheeling and dealing in the transfer of Domain Names has been private, very
little documented valuation information is available to most Domain owners. In virtually
all cases of Domain Name selling, negotiation or bidding has played a major part of the
eventual price.
Because it is necessary to have someone who values or sees value in the address before it
can be sold, sellers often must wait for the buyer to "wake-up" to his or her
need. Even pricing a Domain
Name low will not necessarily speed a sale. You still need a potential buyer that sees a
need. This could happen in 3 weeks or 3 years! Fortunately, public recognition of Domain
Name value is just now developing. |
