Should you pay a lot for a domain?

The need for a short, memorable domain was discussed in a previous post. Finding that perfect domain name for your company, however, can prove to be a challenge. Single-word .COMs have long been taken as well as many two-word combinations. Most good .NETs and .ORGs are also unavailable. Some of these names are in use but a good number are currently in the possession of domain speculators who are willing to sell it for a price as a “premium” domain. Should you pay to buy a good domain name or look to register an unused domain? What are some ways to get a good name?

Domain name prices are arbitrary

When looking to buy a “premium” domain from a seller, the first thing you should know is that the price set by the seller is almost entirely arbitrary. The seller determines the price, be it reasonable or outrageous. Do not think that a high-priced domain is worth the price it is listed. Some domain speculators buy what they think is a good domain and set an exorbitant price, hoping someone will pay, and a few actually do.

Is it worth paying a lot of money for one of these so-called “premium” domains? It depends on your needs, your budget, and the domain itself. A good number or domain names for sale are worth the price and some are being sold for less than they are worth. Again, the price is set only by the seller. If you determine the price is reasonable, it is within your budget, and fits the needs of your business, it may well be worth paying a premium price for a good domain.

All top level domains are not the same

Top level domains (TLDs), such as .COM, .NET, .ORG, .US, and .INFO, vary greatly in value. The top level domain .COM remains the most popular choice. The next most popular in the United States are .NET, .ORG, .INFO, and .BIZ. There are many popular country-specific TLDs, such as .CN (China), .DE (Germany), and .UK (United Kingdom).

The price for a good .COM can range from hundreds to over a million dollars on sites such as Sedo.com, depending on the name. Most good two-word .COMs are in the $500-10,000 range. The price of .NETs and .ORGs are usually substantially lower.

Here are some of the top domain sales for 2009, according to SEDO:

1. Russia.com – $1,500,000
2. Call.com – $1,100,000
3. Server.com – $770,000
4. Brazil.com – $500,000
5. Resumes.com – $400,000
6. Software.co.uk – $249,000
7. Hotel-Reservation.com – $211,800
8. NewBrand.de – $177,600
9. Made.com – $130,000
10. Rent.co.uk – $104,000
11. Keyboard.com – $100,000
12. 64.com – $89,000

You don’t have to spend a fortune to get a good domain

There are many ways to get a good domain name for your business without spending a lot of money. The domain aftermarket lets you get a used (and therefore more valued) domain after the previous owner let it go. You can also look for alternatives to .COMs for the desired name. There are many programs that help you generate a name for your business as well. Contact me if you would like help in finding a good domain for your business.

Do not feel you need to spend a fortune to get the name that is “just right”. There is a possibility the large investment may not pay off, and you may be out thousands of dollars. The thousands that may be spent to buy the “perfect” domain may be better spent on getting your website in order and running smoothly. Even the most expensive domain would not save a poorly-done site.

Also, do not limit your search to only .COM if you need a particular phrase or wording. Although some will naturally type .COM, the number who do this is minimal, probably around 5%. The unused .COM version will also not rank in search engines, so the only way to lose a customer is if they mistakenly type .COM.

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