If your grandmother purchased a piece of oceanfront property 50 years ago for $20,000 and today its worth $5,000,000- would anyone question the value of the property?
No, because real estate has a tangible, and long- standing value in our society. The business of selling land has been around for nearly a millennium. The Internet is merely 15 years old. Domain names are certainly property in the online context, and many generic names are owned by astute investors who saw the future value of these properties long before it was popular to poke, tweet or surf. Just like traditional real estate, investors recognize the opportunity and purchase premium domains at the right time. Premium Domain Names are the Real Estate of the Internet!
A domain name is worth what anyone is willing to spend. Sales routinely go unreported in the millions of dollars, however most domain name re-sales occur between $5,000 to $80,000 Premium domains, category-killer domains and short-meaningful names frequently command “hundreds of thousands” or even “millions” of dollars, depend- ing on a wide range of parameters. Look past the broad value spectrum and consider how a single $10,000 domain name’s cost compares to the value proposition of traditional media.
The real question is not how much a domain name costs but how much value the right domain name can bring to your business.