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What's a Domain Name Really Worth?



What's a Domain Name Really Worth?
   

I'm often asked by people who own, or want to own, a domain name to give my opinion on what the "fair market value" of a particular domain name is.

I usually begin my reply by mentioning that the vast majority of domain names sold on the re-sale market go for less than $1,000. This is greeted by sighs of relief from the folks who want to buy a domain name, and gasps of incredulity from the folks who own a domain name: "Well, my domain name is worth much more than that..."

I then outline some (but not all) of the criteria that, in my opinion, make a domain name more valuable than others:

.com extension (versus .net, .org, .ca)
seven-letters or less
no hyphen(s)
easy to read in all lowercase
easy to say and hear (passes the radio test)
easy to type
consists of word(s) found in the dictionary
While these criteria are helpful in order to gain a rough idea of what a domain name might be worth, I always caution people to take this with a grain of salt.

Why?

Quite frankly, there's really only one accurate way to determine the "fair market value" of a domain name: a domain name is worth whatever the buyer is willing to pay for it. Period.

I've seen "$10,000" domain names trade hands for $1,000, and I've seen "$1,000" domain names trade hands for $10,000. In my experience, when it comes to domain names, beauty (and value) really is in the eye of the beholder.

What's a Domain Name Really Worth? - To learn more about this author, visit Bill Sweetman's Website.

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About the Author


Bill Sweetman
(Visit Bill's Website)
Bill Sweetman is one of the Internet marketing industry's most respected authorities and his innovative work over the last 15 years has been recognized by numerous awards, including the prestigious Internet World Impact Award for Communications. Bill has overseen hundreds of Internet marketing campaigns for companies such as Alliance Atlantis Communications, Bell Mobility, CBC, Dupont, General Motors of Canada, Harlequin Enterprises, Hewlett-Packard, Pfizer Canada, and RBC Royal Bank. Bill is a popular speaker at industry conferences, and he is frequently interviewed by the media as an Internet marketing expert. He is also one of the founders of the Canadian New Media Awards, and he has worked as a producer on numerous award-winning Websites. Bill is a regular contributor to various trade publications and blogs, including his own acclaimed Internet marketing blog, Sweetma ntra, located at www.swe etmantra.com.
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