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How Much is A Domain Name Really Worth?

In an economy where businesses are failing at alarming rates, domain name auction sites are cashing in. New domain name auction sites are popping up everywhere offering domain names that were once selling for $6-$10 at staggering prices. The question many of us ponder is, “How do they do it and who is actually going to pay that much for a $6 domain name?”

For an internet marketer, a seasoned domain name is worth its weight in gold. It comes complete with all the things an internet marketer would pay money for and spend time (often lots of it) to attain. Let’s take a look at a few of the things that may come as part of the package when you happen upon a great expired domain:

Traffic – Even though a domain is expired, it will still show up in the search engine results. The older that domain name is, the more search results it is likely to be associated with. An internet marketer could potentially save thousands of marketing dollars by simply buying an expired domain name for a product that falls in the same or a similar category as the one they currently offer. Traffic from website text, blogs and videos for the expired domain will now be directed to you, the new domain name owner.

RELATED:   The Secrets of Buying and Selling Domain Names

Reputation – If you do your homework, you could benefit from the reputation for quality and service that was built by a now-defunct business. A good example of this is in the mortgage and real estate industry. Many brokers who had great domain names are no longer in business after being around for decades. People are still being directed to their expired domains as a result of seasoned search results. The important point here is to remember to do your homework. Every broker in the industry did not have a good reputation.

Page Rank and Links – If you buy an expired domain while it’s hot and fresh, you’ll reap the benefit of the Google and Alexa page rank that it carried. You will also enjoy the back links from other sites that were once associated with the now-expired domain name.

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Increased Profitability or a New Revenue Stream – An expired domain can be profitable in more ways than one. There is the obvious increase in sales that come from the traffic associated with an expired domain. But for some, selling and trading (or flipping) expired domains has become a new business venture.  There are lots of websites that sell internet marketing guides on how to market expired domains easily and quickly.

Content ideas – If you were at a loss for content ideas, you may be able to work with the previous domain name owner to borrow some of their content ideas. One millionaire internet marketer used this strategy very effectively. He found a domain name that he wanted and bought both it and the sales copy from the owner. He paid a few thousand dollars for it but made millions. That domain name was definitely worth its weight in gold.

RELATED:   Ascertaining The Value of a Domain Name

These are just a few of the considerations that are calculated into the pricing of an expired domain name. As the percentage of the world’s population that buys via the internet continues to rise, we are likely to continue to see expired domain name prices rise too.

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3 Comments

  • Avatar for Marcela Marcela says:

    This is one my questions when I was still finding the right domain name for my website. It was very confusing because domain names could vary hugely in terms of prices. I preferred the one that could grant me more traffic even if it’s bit costly.

  • Avatar for John John says:

    Hey thanks for mentioning benefits of domain name. I believe that domain name is most important part for a website, it’s the entity of a business. Thanks for describing the usage of a expired domain. I’ll look for a expired domain to boost in search.

  • Avatar for Green Hosting Services Green Hosting Services says:

    It’s simply worth what someone else is willing to pay you for it.

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