What’s a Domain Name Worth? Posted by Jeremiah Johnston on May 17th, 2011
Quite literally, the average price of a .COM domain name is $2,595, according to a study released last week that analyzed 10,608 domain sales during the first quarter of 2011. That’s useful information for digital marketers to work into their budgets, but more importantly, they should look at the overall value that a domain provides because the return on investment can be fairly substantial.
Domain names are a pretty basic tool in the digital marketer’s arsenal and should be a main component of any campaign, brand management strategy, product marketing strategy, or even SEM or SEO strategy (I’ll explain more about SEM/SEO in another post). However, their importance is often overlooked and can sometimes be cast aside due to the sticker shock of how much the right name costs.
Domains have been sold for $13 and for $13 million, but if you consider the average price, it’s a reasonable investment in the grand scheme of a marketing budget. To put it in a brick-and-mortar perspective that most anyone can understand, $2,600 is roughly the cost of a vinyl sign or display booth, making it a very reasonable investment for most companies.