12.02.07
What is a domain worth nowadays?
Recently I had a client who considered buying a domain name for some strange idea he had. As is often the case nowadays when you see it come up with a number of links only on the page, it was hosted at Sedo. The seller was quick to say it had been professionally appraised and that is why the price was $24,000. He also quickly snapped up all the .net, .org, etc. variations once he got this inquiry.
Well guess what? My client had it appraised by Sedo themselves and GoDaddy.com (probably the two biggest services in the business) and their average price was just under $2,000.
Yes, lots of domains are being bought and sold, but most for sale are worthless. The average sales price ends up being somewhere about $1,500. Sure there are still occasionally the jackpot names out there… but they are few and far between.. and have proven revenue capabilities or are really needed for a new brand name.
This latter case is very rare though when you consider that you can get a good professional naming agency to come up with a new name for a corporate account for less than $6,000. (Even much less for a small business or small proprietorship startup). And that price includes full legal registration, trademark checks and matching .com domain name!
