Reported High Prices Paid for Domain Names
It’s a matter of supply and demand. There are 30,000 words in a small
dictionary and 150,000+ words in a college dictionary, but not 10,000
businesses are willing to pay $4,000 for a domain name.
Since there are no comprehensive statistics on the prices of domain
names sales, a few reported sales can skew perceptions. These high
prices are from:
Domain Name Prices How much does it cost?
Teenage juvenile drug dealers often make boastful claims that they
make $10,000 a week, which are reported in the press. Likewise,
domain name speculators often make claims to have made $10,000+
and the most extreme claims are reported in the press.
Have 15-year-old drug dealers made $10,000 in a week? Maybe one
out of a hundred had a $10,000 week, [...]
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 [...]