I own domain name abcd.com -- how much is it worth?
The harsh reality is that if you are not already aware of a domain name's worth, it is
probably not worth as much as you would like. In other words, if nobody has beaten a path
to your door to buy it, you probably won't be able to give up your job after a single
sale.
Domain names have sold for anything between $200 and $150,000+. The price you can
get depends on how quickly you want to sell, as well as how much interest you can generate
in the name.
Current domain names are priced at anything up to $7,000,000! It is inconceivable to
imagine any company spending that kind of money on a single domain name.
Better to go for realism rather than madness. I suggest that you price your domain name
between $500 and $10,000 unless there is an exceptional case for pricing it higher. Don't
waste your time selling a domain name for much less than $500, as the effort will not
justify the reward.
Please tell me how much you think "abcd.com" is worth
In the past, I have answered a very large number of such requests. Regrettably, I no
longer have the time to do so, and such requests will be ignored. Instead, here are a few
tips to get you started:-
See what price similar names are being offered at by looking at the lists on the various
broker sites.
Price realistically -- although it is possible to make a real fortune, as the recent
case of "business.com" ($150,000) shows, this is very much the exception rather
than the rule.
Price to sell -- your pricing scheme should be very different if you are trying to sell
a name in three weeks, three months or three years.
I heard that an offer of $50,000 was refused for Television.com. That's
a lot of money. Is it true?
Yes it is. And yes, it is. The offer was made by CNET, the owner refused thinking he would
get more... You can find more details of the domain name, and why the owner refused to
sell it, at television.com
What is the highest price a domain name has sold for?
Two domain names have sold recently for very large sums of money. internet.com was sold
for a sum rumoured to be around the $100,000 mark. And topping even that princely sum, a
couple of weeks later business.com was sold for a staggering $150,000.
What is the highest price a domain name is being offered for?
The asking price for some domain names has been reaching out of this world proportions,
although with no sign of corresponding sales. Some names have been listed for sale by
their hopeful owners for several million dollars! Greed is a powerful motivator, but one
that will not help the owners when they have to renew their names again... and again...
and again... with InterNIC when no buyers appear!
Are domain names going to make me rich?
No. These high-price sales are the tip of a very large iceberg. Most transactions take
place somewhere in the depths of the 'berg, well below the water line. You may make some
money if you pick a good domain name, but you are not going to get rich by selling domain
names. There's more potential in leveraging domain names into another business, like
starting a mailing service such as "MailBank"
or "iName", or becoming a domain name broker. Some people may be able to make good money from
selling domain names, but don't approach them as a get-rich-quick scheme; that kind of
luck only happens to a very few people.
What is your view on the current state of the domain name market?
Difficult to tell. On the one hand, there have been a number of high-profile sales
recently. However, a survey carried out by Internet Gold-Rush in late April found that 11
domain brokers had clocked up a total of only $287,000 in sales, corresponding to the sale
of 68 names. It would appear that there are many more sales being transacted on a 1-2-1
basis, but it is difficult to get precise figures for such sales
Which domain broker is best?
Ah, you're not going to draw me on that one. Their services are broadly similar, although
it is clear that some brokers are larger than others, BestDomains for instance. Some brokers provide
extra services such as virtual domain name hosting, e-mail addresses, even license plates
of your domain name [DomainMart].
Be careful --
some of the sites advertising themselves as brokers actually provide a domain name listing
service only, similar to the Domain Showcase
on this site. Once you find a client, the actual sale will be up to you. Other brokers
take care of every stage of the transaction.
How can I choose which broker to use?
Check out the cost of doing business with each broker. Find out if the broker has a track
record of sales completions. The domain name market is still very new, and many of the
brokers are less than a year old. There is a lot of information on
the different domain name brokers on this site. You will also want to visit
each site to compare features.
I would suggest that you pay attention to the
following:-
Their commission rate. This seems to vary quite widely between brokers.
Does the broker charge buyers for placing bids? This could hinder their business.
Does the broker have a track record of sales? Since the business is relatively new, most
brokers have sold a couple of names, at best. Don't be afraid to ask questions.
How many names are listed on the site? There are two conflicting factors here: your name
will stand out more prominently if the site only lists a few names; on the other hand, you
may prefer to go with the perceived "security" of a larger site.
How easy will it be for buyers to navigate around the site to find your name? If the
site is badly laid out or difficult to navigate, buyers are likely to go elsewhere. After
all, there are plenty of choices.
How much are the domain names that are already listed at the site? Are there some in
your prospective price range, or are they all above or below that range. Does the site
quote prices for domain names, or only "make offers"?
Remember, you can often do business with more than one broker. Increase your exposure as
much as possible. H) Finally, don't be greedy. Even a cursory glance at the brokerage
sites will show you that thousands of domain names are on sale. Don't price yourself out
of the market.
I had a good experience with "Broker X".
Please tell me about it. The domain name market is still very young, and any criteria for
distinguishing the various brokers would be very useful.
I had a bad experience with "Broker Y".
Please give me as many details as you can. I will try and get to the bottom of the
incident, and if necessary post an advisory on this site. Please note that I will not
fight legal or other battles on your behalf, but simply collect information.
Somebody wants to buy my domain name, and I want to sell it, but I am
worried about them cheating me. What can I do? Although I have not used their services, I know that Multimedia Realty offers a $250
escrow service whereby they take care of all the payment and domain name exchange details.
I want to sell my domain name privately, but I don't want the hassle of
changing my registration at InterNIC and making sure the money gets to me. What can I do? Multimedia Realty offers a
$250 escrow service. They will collect the money from the buyer, hold it until the domain
name has been transferred, and then release it to you. This service may be worth it if you
feel you can get quite a high price for a domain name. The commission you would pay most
brokers is much higher than $250.
I sold a domain name. I would like to hear from anyone who has sold a domain name, either privately or via a
broker. I am interested in how easy it was to sell the name, how you promoted the name,
etc.
Some domain name brokers accept multiple listing of domain
names i.e. you can post the same domain name with several brokers. Current information
about domain name brokers can be found here. Post your sales
notice with as many brokers as you can. The increased coverage can only prove beneficial.
Quantity is important. This is not so relevant if you can only afford one or two domain
names. If you are thinking of buying a number of domain names, try and build up a small
portfolio of names. Don't choose all your names from the same "target market",
such as travel or entertainment. Instead try and be as diverse as possible.
Consider an example:
Person A buys one domain name and puts it on the market for
$2,000.
Person B buys 19 domain names and puts them on the market for $2,000 each.
Assuming that person A and person B are equally adept at choosing domain names, then
person B has 19 times as many chances to sell a name as person A. Person A can make a tidy
profit by selling the one domain name. However, person B is guaranteed to make back the
outlay all 19 names with the very first sale.
NOTE: Naturally, there is more exposure to risk when purchasing more domain names.
Remember that the value of a domain name tends towards $0 as the expiry date of the
contract approaches.
Finally, if you have registered a once-in-a lifetime domain name, try approaching a
company in your prospective market directly. After all, if the domain name really is that
good, they will be glad to have the chance to buy it off you.
What do you mean, "expiry date"? Remember that a domain name is yours to do what you like with, but only for a limited
period of time. During that time period you can use it, buy it, sell it or do whatever you
like with it. At the end of the time period you have to pay again.
Current pricing is
$100 for the first two years of ownership [payable in advance] plus $50 per year after the
two years are up.
I've been trying to sell my domain name for X months, and there has
been no interest at all. What can I do? Keep waiting. The domain name market is growing from a base of zero only a few months
ago. Currently, by far the most active aspect of the market is the registration of new
names. There are thousands of domain names for sale, and only a few buyers. As more
companies are coming onto the Internet every day, the demand for good domain names can
only increase.
Do you have a sample contract I could use to sell my names? Not yet, this is something I am working on. Please be patient, and come back to this
site often...
Introduction
