There's a revolution in technology going on and for as many businesses that get it, many intelligent organizations still just do not. I get a few offers, most of them low, on different domain names every month and one of the questions I was asked by a potential purchaser was, how do I arrive at a price?
It's a fair question and to put an answer to it, here's the rationale behind the numbers. First, like real estate domain names are virtual property, but with several valuable added dimensions. Domains are the way customers find your business, remember your location and spread the news about your products. It's your business address for all practical purposes. Ninety percent of the people you do business with will never visit your business at it's physical location, but they'll all check your website, which is by way of your domain name.
Names that have more traffic or are capable of generating more traffic with short memorable names are worth more and their market demand is more. Like having a shop on main street vs. opening up a business on a rural road. A good memorable name that suits your business or product lines brings customers and helps them find their way back to you. Most company names are picked without the customer in mind or without any marketing considerations, just a name that means something to the organization on a somewhat emotional level. You can spend millions branding a odd name or bring the brand to your door with a descriptive name. And with domain names, you can have several or hundreds of names to drive traffic to your business.
The method, internet media. Consider the pro's and cons of different advertising media. There's print, TV, radio and internet. Print, I throw it out. It's garbage that comes with my printed mail. I haven't bought a newspaper in over 10 years at least and the last time I think I looked at a magazine, I was either in a doctors office or on a plane. Forget print, it's over. The postal service is nostalgic and I'd be willing to bet 100 percent privatized within 10 years. TV, I watch movies for the most part or change the channel during the commercials. Watching the Atlanta Falcons beat the Aint's in the season opener, I saw a couple of ads, but couldn't tell you what they were today. I'm moving in the direction of subscription TV like Netflix and Hulu. I'm not alone. Radio, okay you get ads in front of me while driving more often then I care to say. Occasionally, I am too lazy to load a playlist from my phone or all the stations that I have programmed in are in sync with their commercial's timed together. Traffic reports get me to tune in, but the rest of the noise I could do without. I get about half of percent of anything useful from radio news. The tone and rate of speech only ramps up tension. I'm working on weaseling out listening to main stream radio all together. Half the time I enjoy just listening to silence.
The internet has main access to get in-front of my eyes. I am on the net at home, at work, even while visiting a store in the mall I might be checking prices of a competitor on my phone. I have discretionary income and I move quickly. Like a lot of your customers, I have much to manage and like in the real world, I have to be street smart online and as nimble as a forest creature to find the best deals. I validate a business I am going to use based on the domain they have, how their website looks, works and if they have a phone number on their contact page. Usually I like a second opinion, options or it's just the way to complete due diligence by checking a few other sites. How I find that second, third or fourth site through search or by their domain name directly is potentially a company I'll be working with. CEO's of those companies are the CEO's that are likely to make their 17 percent growth targets and are the ones that get their bonuses. They're the one that get it. I price domain names comparable to other media even when that media is less effective.
30 seconds on Atlanta TV during prime time will cost you 30k and your money is gone just that fast. Most industry magazine ads will cost you upwards of 1200 per month for a four color, 1/2 to full page ad and you don't even know if anyone is reading it. Your domain name is yours perpetually. The internet is even more revolutionary as the phone system was when it came into being some 120 years ago and as fast as technology grows, the internet is not going to be replaced anytime soon. With a great domain name you look like the authority in your industry. Most clients will never see your office, I can't stress enough how important your online presence is. Technology is the only industry that has had double digit growth since the 70's and looks to be booming for the rest of man's existence. The slope of the curve is about to go vertical.
The short, memorable, brand-able, desirable names, and what other similar domains have sold for, makes for the price range listed. We encourage you to make offers on our domains and other available names. The cost, effectiveness and value is continually rising.
Investing in domain names is similar to real estate in that high traffic areas generally go for higher prices as well as desirable locations. DomainPicks.com Provides a clear list of domain names at various auction houses listed for the coming day. Mark's a excellent host and you'll find some gems among the list along with some personal antidotes.
On DomainPicks.com you can find a deal on a domain name and read through the articles on Mark's site to get a feel for how vast the domain industry is.