Thousands of Dollars for a Domain Name?

Wendy Kennedy from Small Business Trends have written this interesting article about the guts of some people who are very much willing to pay thousands of dollars for a domain name.

It’s not cliche to say that today every dollar counts. Times are tight — for some, times are very tight — and business owners across the country are looking at every dollar they spend to make sure they are getting the return they need from the money they invest.

So why then, in times such as these, would anyone be willing to pay thousands of dollars for a simple domain name? The answer is easy: because those simple domains (often called premium domains) can make a difference.

THE AGE OF THE PREMIUM DOMAIN

A premium domain is a domain that has been registered previously and is back on the market for resale (it’s like a used car lot for domain names … but these items have not depreciated in value — in fact, it’s quite the opposite situation).

You see, today there are about 76 million dot com names registered worldwide. That means the chances of finding a very intrinsic dot com (shopping.com, flowers.com) are slim. These names were snapped up years ago but now, these early domain registrants are increasingly willing to part with their prized domain names for the right price. Some of these sales live in infamy (consider Pizza.com that sold for $2.6 million in 2008 or Business.com that sold for $7.5 million in 1999) but the average premium domain price tag ranges from a few hundred to a few thousand dollars.

So what can a Premium Domain Name do for our internet business? Well, you have to read more on Wendy's article - Why Would Anyone Pay Thousands for a Domain Name?