If you have the choice and are in the financial position to afford a home for your business, do you choose to set up shop in the middle of Times Square, or in a backwoods trailer off a dirt road in the middle of nowhere?
No-brainer right?
The same choice exists between domain names, so investing in the better domain name for your business should also be a no-brainer.
In the modern business world, the domain name is replacing brick and mortar real estate. Case in point, bed in-a-box online brands such as Casper.com and Purple.com are killing the retail giant Mattress Firm, which has been forced to file bankruptcy. Sears and K-Mart are also getting pummeled by Amazon.com and other online retailers.
Domains are becoming more important that ever and should become the first priority for businesses. The land rush started many years ago. If that perfect domain for your business is on the market, the one that you don't have to worry about outgrowing, GRAB IT!, or someone else will.
Startups in particular have a great challenge. Most are internet driven, but the best domain names are long taken. When they do come to market, there may be a small window of opportunity to acquire the domain that will become essential to the long term survival and growth of your business. There is a definite scarcity of quality domain names in the market and each domain is one of one.
While "made up" words make for distinctive brands and can sometimes be available to register, the easier it is for someone to pronounce, spell and to associate the name with something common or the industry you serve, the better it will be for you and your business. If you are a startup, I highly recommend you also check out this extremely well-sourced article by Michael Cyger called Getting Traction and Funding is Way Easier with a Great Brand. It breaks down real world data on names/domain names and startup funding from investors.
In the area of generic category defining keyword domains, they don't just to give a marketing asset to your brand, but owning your category killer also keeps competitors from getting them and leveraging them to gain and eat into the market share.
You are probably here because you don't quite understand how you can register a new domain name at your registrar of choice for $10-$20, but someone owns the domain name you want and is asking thousands of dollars, hundreds of thousands of dollars, or even millions.
To understand the domain name market, what you need to see is true, verified, end-user domain sales data. I hope that you will read this blog and have a better understanding of the value of domains and the competition driving the domain aftermarket.
What makes a domain name valuable?
A domain name is quite possibly the most critical digital asset and marketing tool a business can own. The king of the domain extensions is the ".com", and any other extension should be the second option. A ".com" value will be exponentially higher than any other extension. Due to the high demand for domain names as businesses continue to come online, there have been countless new extensions released, but ultimately the ".com" remains unchallenged.
The following link will take you to archives of weekly publicly reported domain sales. There is rarely a week that goes by without publicly reported 6 figure domain name sales. There are multiple 5 figure sales every single week. Take a look at a few of the recent weekly reports.
DNJOURNAL - DOMAIN SALES ARCHIVES
A domain name has global reach, while a physical building, billboard, magazine, TV, Radio advertisement, etc., is geographically limited in its reach, or limited to the distribution of the print materials or broadcast.
A domain name is your information portal, your storefront, your press release,your communication channel (through contact forms and domain related email addresses), your brand identity, your reputation.
Your domain name is always on, always open 24/7, always visible, always available to provide information regarding your business.
A good memorable premium ".com" domain saves you marketing expenses and manpower. It establishes your credibility and authority as a market leader and sets you apart from the pretenders.
The right domain will determine whether a potential lead will become a customer, client, investor, or skip over you all together. After all, if you are not willing to invest in your business, why should they? When they see that your company email address is has some overly long, or hard to remember hyphenated domain, in a strange unfamiliar extension, how credible are you?
Purchasing a premium domain name is an initial investment that will add significant value to your business year after year with an extremely low maintenance cost. Most domains can be renewed indefinitely for a few dollars a year. The domain is the backbone of the modern business and the value it adds cannot be overstated. It especially comes into perspective when compared to other marketing expenses that will come out of a company's annual budget with significantly less return.
You know what else makes a domain name valuable? Competition.
If its a good name, its taken. Someone has already thought of it, it will not ever be available for registration fee again. Once someone has it, they will hold on it it and continue to renew it.
Even if they let it expire, you chances of obtaining it are slim. Every day thousands of people are watching and bidding on quality expiring domains, which are sold at extremely competitive auctions through popular domain name registrars and auction houses. They are sold before they ever drop and become available. So if you have been waiting for a domain you want to expire and become available, but found out that someone else beat you to it. This is why.
High quality ".com" domains can only be obtained through the aftermarket, and not for basic registrar initial registration fees.
Whatever you do, do not rely on junk automatic appraisal websites. They are a joke in the domain industry and do not accurately reflect any of the intangibles that a coded script cannot weigh.
Ultimately, domain value is based upon what is the likely best use of the domain to maximize its potential as a business marketing asset, and the domain will likely be priced accordingly. Great domains are going to continuously add value to your business.
So what is a great domain?
The most important element of a great domain be that it is easy to remember, pronounce and spell. A domain can be much easier to remember than a phone number.
Second, does it fit your brand or your product/service area?
There are many characteristics that make a domain desirable, and thus demand a premium price.
We hope that this has been helpful and insightful. Mega businesses that we grew up with are failing every day because they didn't embrace the power of their web identity. Meanwhile, the most successful players of today and tomorrow are stockpiling domain assets to protect their brand identity and set them up for future marketing campaigns.
Working with experts in domain identity and branding experts through YESnames.com will get your business on the right track to reap the benefits of a premium domain for years to come.
No-brainer right?
The same choice exists between domain names, so investing in the better domain name for your business should also be a no-brainer.
In the modern business world, the domain name is replacing brick and mortar real estate. Case in point, bed in-a-box online brands such as Casper.com and Purple.com are killing the retail giant Mattress Firm, which has been forced to file bankruptcy. Sears and K-Mart are also getting pummeled by Amazon.com and other online retailers.
Domains are becoming more important that ever and should become the first priority for businesses. The land rush started many years ago. If that perfect domain for your business is on the market, the one that you don't have to worry about outgrowing, GRAB IT!, or someone else will.
Startups in particular have a great challenge. Most are internet driven, but the best domain names are long taken. When they do come to market, there may be a small window of opportunity to acquire the domain that will become essential to the long term survival and growth of your business. There is a definite scarcity of quality domain names in the market and each domain is one of one.
While "made up" words make for distinctive brands and can sometimes be available to register, the easier it is for someone to pronounce, spell and to associate the name with something common or the industry you serve, the better it will be for you and your business. If you are a startup, I highly recommend you also check out this extremely well-sourced article by Michael Cyger called Getting Traction and Funding is Way Easier with a Great Brand. It breaks down real world data on names/domain names and startup funding from investors.
In the area of generic category defining keyword domains, they don't just to give a marketing asset to your brand, but owning your category killer also keeps competitors from getting them and leveraging them to gain and eat into the market share.
You are probably here because you don't quite understand how you can register a new domain name at your registrar of choice for $10-$20, but someone owns the domain name you want and is asking thousands of dollars, hundreds of thousands of dollars, or even millions.
To understand the domain name market, what you need to see is true, verified, end-user domain sales data. I hope that you will read this blog and have a better understanding of the value of domains and the competition driving the domain aftermarket.
What makes a domain name valuable?
A domain name is quite possibly the most critical digital asset and marketing tool a business can own. The king of the domain extensions is the ".com", and any other extension should be the second option. A ".com" value will be exponentially higher than any other extension. Due to the high demand for domain names as businesses continue to come online, there have been countless new extensions released, but ultimately the ".com" remains unchallenged.
The following link will take you to archives of weekly publicly reported domain sales. There is rarely a week that goes by without publicly reported 6 figure domain name sales. There are multiple 5 figure sales every single week. Take a look at a few of the recent weekly reports.
DNJOURNAL - DOMAIN SALES ARCHIVES
A domain name has global reach, while a physical building, billboard, magazine, TV, Radio advertisement, etc., is geographically limited in its reach, or limited to the distribution of the print materials or broadcast.
A domain name is your information portal, your storefront, your press release,your communication channel (through contact forms and domain related email addresses), your brand identity, your reputation.
Your domain name is always on, always open 24/7, always visible, always available to provide information regarding your business.
A good memorable premium ".com" domain saves you marketing expenses and manpower. It establishes your credibility and authority as a market leader and sets you apart from the pretenders.
The right domain will determine whether a potential lead will become a customer, client, investor, or skip over you all together. After all, if you are not willing to invest in your business, why should they? When they see that your company email address is has some overly long, or hard to remember hyphenated domain, in a strange unfamiliar extension, how credible are you?
Purchasing a premium domain name is an initial investment that will add significant value to your business year after year with an extremely low maintenance cost. Most domains can be renewed indefinitely for a few dollars a year. The domain is the backbone of the modern business and the value it adds cannot be overstated. It especially comes into perspective when compared to other marketing expenses that will come out of a company's annual budget with significantly less return.
You know what else makes a domain name valuable? Competition.
If its a good name, its taken. Someone has already thought of it, it will not ever be available for registration fee again. Once someone has it, they will hold on it it and continue to renew it.
Even if they let it expire, you chances of obtaining it are slim. Every day thousands of people are watching and bidding on quality expiring domains, which are sold at extremely competitive auctions through popular domain name registrars and auction houses. They are sold before they ever drop and become available. So if you have been waiting for a domain you want to expire and become available, but found out that someone else beat you to it. This is why.
High quality ".com" domains can only be obtained through the aftermarket, and not for basic registrar initial registration fees.
Whatever you do, do not rely on junk automatic appraisal websites. They are a joke in the domain industry and do not accurately reflect any of the intangibles that a coded script cannot weigh.
Ultimately, domain value is based upon what is the likely best use of the domain to maximize its potential as a business marketing asset, and the domain will likely be priced accordingly. Great domains are going to continuously add value to your business.
So what is a great domain?
The most important element of a great domain be that it is easy to remember, pronounce and spell. A domain can be much easier to remember than a phone number.
Second, does it fit your brand or your product/service area?
There are many characteristics that make a domain desirable, and thus demand a premium price.
- A distinctive memorable, and pronounceable ".com" that would make for a great new brand identity. This can be a "made up" name, that stands out. Examples: Syncopa.com, Giftie,.com, Beedio.com, Knowzie.com
- A name or surname, a street, a location: Examples: McBrides.com, EastAve.com
- A category defining word or phrase that matches your market, product offerings or services and that others in your market could use to gain a competitive advantage. This is usually a generic description of what you do or what you sell. Examples: DesignGames.com, CruisePortTours.com, GoldRefinery.com, RepairSolar.com
- A common generic word used as a brand, Examples: Amazon.com, Apple.com, Purple.com
- A short three to five letter abbreviation or Acronym. The shorter however the more expensive. Short and pronounceable or having a double meaning also adds value. Examples: PCAN.com, LOWD.com
- A memorable phrase or word combination that makes sense, has a positive connotation, or conveys your business niche. Examples: NamePerfect.com, ModernLawyers.com, SwimsuitFigure..com, InsidetheMachine.com
We hope that this has been helpful and insightful. Mega businesses that we grew up with are failing every day because they didn't embrace the power of their web identity. Meanwhile, the most successful players of today and tomorrow are stockpiling domain assets to protect their brand identity and set them up for future marketing campaigns.
Working with experts in domain identity and branding experts through YESnames.com will get your business on the right track to reap the benefits of a premium domain for years to come.
