How much should I pay for this domain?


1

I found the perfect domain name for my startup idea. But, how do I know how much to pay for it? It's currently at auction on GoDaddy, and the auction ends Oct 11. The owner is asking $60, but I don't know what other people have already offered for it. I want to snatch this domain, so if someone with more experience with the domain name market could give me a ball-park idea for what to bid, that would be much appreciated.

I'm not going to give the domain, because I fear for competition. But I'll say this. It's a 5 letter .net domain; it's one English word and the word is ranked in the 200 as for English word popularity.

Branding Cost Estimation

asked Oct 9 '13 at 19:38
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Sam
108 points
  • Maybe I am missing something here - if he is asking $60 and it is not sold then, it is reasonable to assume, that no one has yet offered him his asking price or he would have sold it so offer him $60 and he will sell it? – Bhttoan 10 years ago
  • @ bhttoan: it is probably some kind of auction limited in time. So if Sam propose now $60, there is still a possibility that someone will offer more. – Data Smarter 10 years ago

1 Answer


2

Don't think about it as an immediate cost. The domain name (and thus often product or company name) is an investment for the whole life of your product/company. Small example: If you imagine the life cycle of 5 years for your product, the difference between eg. $60 and $260 is of $40 per year. It means $3.50 per month during the whole product life cycle.

On the other hand, put into the balance the value that this domain name can bring you (compared to other, less appropriate name) as benefit during these 5 years. If it is at least an "usual size" business, the $3.50/month is nothing... One BigMac per month...

It is obvious that startups have to pay attention at the costs, especially at the beginning. And especially if it's a bootstrapping from your own financial means but don't forget to see it in long term and try to estimate what it can bring you. PS: Btw the .NET domains are MUCH cheaper than the .COM domains. Just go to some domain market places like Sedo and have a look at the prices over there (but again, these prices are what the owners ask for and it is often very overvalued). Try to find domain names similar to the one you want to buy and you will see...

answered Oct 9 '13 at 20:29
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Data Smarter
1,274 points
  • Thanks for your answer, I highly appreciate it! I'm still wondering though, what price should I offer for such a domain as described above? I want to be the one to get it, but I don't want to over pay when it's not necessary. Is it even possible to make such a guess as to what price would grab the domain? – Sam 10 years ago

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Branding Cost Estimation