Resell Your Name and Get Some of Your Money Back If Your Plans Change
Or it’s not all money down the drain.
In addition to contributing to your brand equity and profits, a quality
domain name is an asset that can be resold if your plans change. In
other words, your investment is not money down the drain.
If you purchase a quality one-word domain name for $3,000, you may
be able to sell [...]
The Cost To Change A Name
Once a name is promoted and becomes known to consumers, it
becomes more difficult and expensive to change. First a new name has
to be selected and purchased.
Then there are the “menu” costs of changing the printing on menus,
catalogs, letterheads, signs, logos and so on. A logo has to be
redesigned. These may cost 1% of sales.
There is [...]
How much is a great domain name worth to a business? Part three
The big company will pay me $100,000 is usually a false hope because
it ignores the supply side. This is similar to the water-diamond paradox
in economics. Why is water so inexpensive when it is essential? If
people had to, people would pay $10/gallon for water to live.
Diamonds, while beautiful, are not essential but they are expensive.
The answer [...]
How much is a great domain name worth to a business? Part 2
There are two implications of this rule, one obvious and one not so
obvious.
First the obvious. Your maximum budget for a domain name should
depend largely on your expected online sales. If you are trying to run a
$100,000/year online business, $1,000 is about the maximum you
should spend on a domain name. If you are trying to run [...]
How much is a great domain name worth to a business? Part one
A simple rule: 1% of sales
If a great domain name compared to a good domain name will increase
sales 2% and the margin is 50%, then a great domain name is worth
1% of sales.
For example, a domain name that will increase profits 1% in a $10,000
business is only worth $100 to that business.
If that same domain [...]