Think of domains in terms of ‘electronic real estate’. While there are large amounts of real estate available for sale at any given time, a few are worth much more than most. If you were looking for a house with the same features in a particular area, one with a view would be worth more than one without a view. If another similar home was on ocean front property, it would be worth substantially more than the first two properties.
· I can’t get the domain I want in the .com extension; why not just buy one in a cheaper extension that’s not taken? Ie. DogTrainningTips.com is taken and not for sale, so why not register DogTrainingTips.travel?
This logic only applies if you really don’t need people or customers to find you on the crowded Internet. If you’re just starting a fun hobby site or one for a small number of people that you are in contact with on a regular basis, a cheap $10 domain works fine. Just don’t plan to turn it into a business later on if you need visitors and/or customers to find your site.
· Why would I buy more than one domain?
-It will increase the number of new visitors/customers to your site, particularly if you already have the singular version and you want to add the plural version or vice versa.
-It will keep the visitors from going to your competitors.
-buying keyword phrases that are derogatory to your site or business is a smart defensive move that keeps away those who might want to do mischevious or even nefarious things with such a domain.
Example: Your site is: GreatElectrician.com. You might consider registering ‘BoycottGreatElectrician.com and GreatElectricainSucks.com to ensure no one else uses it. Many small businesses have one or two dozen domains registered to help them grow their business, protect their online territory and prevent abuse.
· I already have a website, why would I want to change the name?
You don’t need to at all – that’s one of the big advantages of the Internet. It allows you to have your cake and eat it too. Keep your existing domain and add a better domain that points directly to your existing site.
Example: Your existing name is A1Electrician.com and you are an electrician whose works in “Boise, Idaho. If you were able to find and negotiate the purchase of BoiseElectrican.com, you would be able to quickly and easily ‘redirect’ (at no cost), that domain name to your existing site A1Electrician.com. This means that for all those people who know of you as ‘A1Electrician.com, nothing would change. For the many new customers who would search for a Boise electrician, they would automatically be directed to your existing site A1Electricain.com instead of your competitor(s).
· I only service a local area, why do I need a more expensive ‘.com’ domain?
Even if you were to use a much cheaper BoiseElectricain.net or .org or .us, you would automatically be sending many of your existing and potential customers to the competitor that owns BoiseElectricain.com. This is because ‘.com’ is the most used, recognized and go-to extension in the world...even for local products and services.
· I can buy domains for $10, why should I spend any more?
This is where many online businesses make their biggest mistake. In fact, it becomes the most expensive $10 they ever spent. It would be very similar to setting up a fine dining restaurant in an industrial location because the rent is so much cheaper and ‘...it’s all I can afford.’
In this case, the most serious and common problem, ‘lack of customers’, becomes a critical issue right away. They’re forced to spend a lot more ‘advertising/promotional’ money in an effort to drive the customers to your restaurant or online site. This 'marketing expense' usually increases month over month until they either encourage some ‘expensive to find customers’ or go out of business.
If they had invested the right amount for the best ‘location’ (domain name) for the success of the business, they would save money quickly and have a real asset that will greatly enhance the value of the business when it is sold.
· How do I know how much a domain name is really worth?*
The rule of thumb is to look for domains that follow these simple but critical rules:
1. .com extension.
2. Correct spelling.
3. No hyphens.
4. No numbers.**
5. Defines the market you are targeting.
6. Easy to say.
7. Easy to spell
8. Easy to remember.
9. Says what it means.
*In some cases, depending on the specific domain, we will obtain a ‘Market Comparative Appraisal’. This professional appraisal uses the same methodology used in the real estate world in that it lists and compares (‘comps’) the actual selling price of very similar domains. Please contact us to discuss the details of how this will help you make an informed decision.
**Some domains with numbers such as 1800buydogs.com, 500Dollars.com or 327motor.com are exceptions.
Any domain that fits all of the above criteria is usually worth between $1,500 to $5,000 or more, depending on the industry/product/service it defines.
Example: GoldShoelaces.com fits all of the above criteria. However, when you look at the market it defines (gold shoelaces), you will see that it is very small, few searches for the keywords ‘gold shoelaces’, and very little cost on a ‘pay per click’ (ppc) campaign to get a decent location on a Google/Yahoo/Bing etc. search. Therefore, although this domain comes very close to being a valuable domain, but it’s not.* However, if the domain name were GoldWatches.com, it could easily be worth multiple 6 figures.
*GoldShoelaces.com would be worth more to a business that wants to use it as being a unique domain that stands out for 7 of the 9 reasons listed above. Many online businesses use this approach and even use one-‘word’ domains that are made up. The most famous probably being ‘Google.com’. Now, before you think you can use this approach, you better have deep pockets to ensure your product or service is an industry ‘killer’ or you could end up shooting yourself in the foot. Also, even a pronounceable domain that is 6 letters long in the .com extension would be worth anywhere from a few thousand to a hundred thousand or more – depending on the specific domain and its application.
· How could I justify spending a few hundred or even a few thousand dollars for just a domain name?
For a number of very good reasons:
1. The Internet is very crowded with over 210 million domains registered and growing. Your target market (customers) needs to be able to find you easily the first time and then remember how to return to you in the future and easily recommend it to their friends.
2. Your domain name is your brand. It says a lot about you and your company before anyone goes to your site. Many people will not visit a site if the domain does not exude credibility, expertise, security and professionalism. Which sites would you go to if you were looking to purchase a car in Denver?:
a) BigBobsCars4-u.net Value: Registration fee $10 to $20.
b) BigBobsCars.net Value: Not much more than above.
c) BigBobsCars.com* Value: Should not pay more than $500
d) DenverCars.com Value: At least $2,500, but easily could
go for $5,000+
*BigBobsCars.com is an actual car dealership in Florida. Even though the value of the domain is limited, the owner would not likely sell it. If they did, you would probably have to give them an offer they couldn’t refuse.
3. For the same list above, there is only one domain that people would actually search for if they did not know your domain and be able to correctly spell it – ‘D’ is the answer.
4. Any solid domain that has keywords that people search for and has a real developed business attached to it, will only enhance the value of the whole company when it is sold.
5. The on-going monthly online marketing funds saved will pay back the cost of your domain purchase in a relatively short amount of time. Once that point is reached, it becomes an appreciating asset as you are now saving money and adding to the value of the overall company.
· All the good domain names are gone.
Just because their registered and most likely have been for some time, does not mean that you cannot acquire it. Keep in mind that if the domain has a thriving business behind it, it most likely would not be for sale unless you bought the whole business. If you’re lucky, and the domain does not have a business behind it, you might be able to negotiate a reasonable price. Also keep in mind, you need to determine how much the domain is worth to your business at least over the next 3 to 5 years or more. Too many people try to negotiate a figure that is only based on how little one wants to spend rather than what is the return on investment (ROI) to their business. Don't be penny wise and pound foolish.
· Ok...so I found a specific domain name that I know will help my site/business, I still can’t afford it.
We look at individual domains on a case by case basis. Depending on a few factors, we do have a ‘no interest’ loan to purchase option. Please contact us for details. If you qualify, this allows you to secure and use the domain immediately while it is paid for over time at no extra cost to the purchase price.