How Much Is A Domain Name Worth? Negotiating A Domain Name Purchase
Should you make that deal or not? How much is a domain name worth, anyway? Find out how to negotiate a successful domain name purchase.
A domain name might be a few short words, but it represents a lot of your business.
For example, a domain name is a building block for the rest of your brand. That’s why they are so valuable.
But when it comes to money, how much is a domain name?
Well, they don’t have a set price point.
Keep reading to learn how much you should spend on and how to negotiate a purchase.
How Much Is a Domain Name Worth?
So how much should you pay ?
The answer to this question depends on a number of things. If your business is just starting out and you don’t have a lot of capital, you probably shouldn’t spend anything over $10,000 for a domain name.
Sound like a lot?
Domain names can sell for a lot higher, some for as high as $1,000,000.
So start by asking yourself how much is it worth to you and your business. If you aren’t sure how much to spend, you can work with a consultant. They can help you determine how much it will be worth when matched with your brand.
Don’t buy it if you don’t have to budget for it. When you’re just starting out and no one knows who you are, a $20 dollar domain name will do just fine.
Look up the Domain Name
After you’ve spent some time figuring out how much a particular domain name is worth to your business, you have to look up the domain name to find out who owns it.
You can do this by using WhoIs.net.
On this website, you’ll be able to find the email address, the phone number, and other relevant contact information of the owner.
Reach out to the Owner
You can use the owner contact information to get in touch with them. But just pick one method. There’s no need to call the owner, send them an email, and mail them a handwritten note.
Just choose the one you feel most comfortable with.
And be polite.
Some domain names are owned by people who aren’t doing anything with them. You don’t have to make a comment about this or say anything negative. That won’t start off the negotiations very well.
Ask the owner for a starting price. This will give you an idea of how much they want for the name and will keep you from making a starting offer that’s too high.
There’s no need to explain who you are and why you want the domain name in detail, but you shouldn’t lie about your reasons either.
Have a “Final Offer”
There’s a good chance you’ll have to negotiate the price. Some people are waiting for that “big offer” and might want to hold out for a higher price.
If you’re dealing with one of these people, do your best to show them you’re the offer they’ve been waiting for. This might include your business’s logos, phrases, and any anything else you have copyrighted or trademarked.
That said, you should always have a final offer as well. Don’t spend more than you want to on a domain name.
You should have a few alternative domain names in mind during your negotiations. If the negotiations don’t go as planned, you still have other avenues you can follow.
This will prevent you from spending too much out of desperation or making other bad decisions.
Use an Escrow Service
Once you’ve agreed on a fair price with the owner, find an escrow service to protect yourself.
This service will hold your money in a safe location until the owner transfers it to you. After that, the owner will receive the money.
Don’t forget this step.
An escrow service will prevent you from getting ripped off during a domain name sale.
Buying Your Domain Name
So how much is it worth?
There’s no set amount. Some businesses might pay tens of thousands of dollars. You may only need to spend a couple hundred.
Are you getting ready to make a domain name transfer?
Make sure you check out some of our services and find out how we can help you through the process.