A little
information about domain pricing, determining market value, buying a
domain from a reseller,
appraising budgeting and making an offer on a domain name.
Often one of the first (or only) questions from a potential buyer goes
something like "how much is this domain?". The average sale price for a
two
word domain is currently around $3,000 - $5,000 and when they are
particularly good quality or high value keywords, domain
prices increase substantially. You can see
what domain names have sold for at the high end of the market on the most expensive domain
names page, some domains have sold for millions
of dollars.
If you are not experienced in domain name buying or selling, you should
be aware of a few important facts; Firstly - Domain names have been
available for registration since 1985, that's more than a quarter of a
century!
and over the years, all of the best names have been registered, many
early
on. Most of the top domain collectors, web developers and investors
will never part with many of their domains, so your chance of finding a
good name these days
can be very challenging.
When you are buying a domain name for your business, here is a good way
to look at it - purchasing a domain name is similar to purchasing a
trademark, it's your brand name on the internet and it is also your
virtual (non-physical) business address, basically "online real
estate".
These are important facts to consider when determining a budget for a
domain name purchase. Every domain name is unique and is the unique web
address on the internet for your website.
Consider how much it has cost to maintain registration of a domain over
the years. As we mentioned earlier, people have had the ability to
register domain names since the mid 1980's. For most of the first
decade, registration was free and administered by various government
departments. Back then, most internet users did not use the internet
for business and many had little or no interest in owning a domain name
or the future value of such property. By 1995, operation had been
contracted to Network Solutions and that year they began charging an
annual fee of $50 per year per domain name. Network Solutions remained
the sole registrar until 1999, when a shared registration system was
developed and many new registrars entered the market offering lower
prices. The average price in 2011 ranges from $8 - $35, depending on
the registrar.
Many investors, website developers and domain name resellers have vast
portfolios
which are costly to maintain. For example: a portfolio of 1000 domain
names costs $8,500 - $10,000+ per year in registration fees alone.
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