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It All Adds Up
Domain Name Values
A good Domain Name is destined to become an extremely scarce and valuable asset. Business.com sold for US $7.5 million. It is a very good, common, generic word.
Many other domain names have passed for millions, and hundreds of thousands of dollars.
A Domain Name's value can be determined in a number of areas:
- Is it generic, does it represent a whole industry, group of people, or interest and hobby?
- Does this industry, or other, represent a huge economy? In other words, a name like Casinos.Net is great because it is a one word, generic for a HUG industry.
- Is it short and easy to remember? Two or three word phrases are okay, as long as they are common phrases, or sound common, ie HowToMakeProfits.com.
Furthermore, a domain name will be worth even more if:
- Is it developed? If you have many pages and it is propogated on search engines, the new owner can place re-direction for missing links on those pages and capitalise on existing traffic. If it is a good site, you can argue, like a person with an old house, that if the developer/ purchaser wishes to use it (live in it) or not, it is no concern to you, as it tokk x many hours and $x many dollars to construct.
- Does it have substantial traffic? If your Domain Name already has good traffic, well this becomes a part of the negotiation process, as the purchaser must compensate for the traffic.
- Is your site making money? If your hobby site, makes say US$1000 per month, it may not seem much, but this is $12 000 per annum, and at 20 times revnues allowing for just a modest growth in the overall Internet, your Domain Name is worth a minimum of US$240 000. If you had this latter amount in the bank earning 5% interest ($12 000 per year), then you let someone have that $240 000 cash for $100 000?
- Is it .com, .net or other Domain Name? .com is seen as the most familiar and recognisable, but any one word domain name which presents with a well sounding .Net, .TV, or .CC could be valuable.
- .Net Domain Name are the Dark Horses in the near future. In 2001, Microsoft is introducing a .Net Operating Platform with many of its products ending in .Net, ie Windows.Net, Office.Net. See Microsoft.net/net/. The .Net will become recognised as nearly as "generic" as the .com is now, if not more, over the coming years. The .Net domain names, will be like yesterday's slum, which become tomorrow's hottest property spots. We have a feature article on Dot.Net Domain Names.
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