Domain Name Worth Millions
What's in a name? More specifically, what's so lucrative about certain domain names that they sell for millions of dollars?
Business Insider wondered, and decided there was no better partner to help find the answer than DN Journal. The two compiled a list of the top 25 most expensive domain names in the world, discovering that both gambling- and sex-related domains are the most lucrative.
Domain Name Worth Millions: The Top Ten
10. Shopping.de (Domain name worth Millions) – $2,858,945: Sold in 2008, the domain was purchased by the German company Unister GmbH to complement their other sites News.de, Auto.de, and Kredit.de.
9. Candy.com (Domain name worth Millions)- $3,000,000: Sold in 2009, this sugary sweet domain was picked up by G&J Holdings.
8. (Technically, tied with Candy.com) Vodka.com (Domain name worth Millions) – $3,000,000: The largest vodka manufacturer in Russia snagged this domain in 2006.
7. Clothes.com (Domain name worth Millions) – $4,900,000: Originally purchased by Zappos in 2008, Clothes.com and Zappos are both owned by Amazon.
6. Toys.com (Domain name worth Millions) – $5,100,000: I'm sure you wouldn't have guessed this, but this domain was purchased by ToysRUS in 2009.
5. Slots.com (Domain name worth Millions) – $5,500,000: Purchased in 2010, the identity of the buyer is a mystery. It is still a gambling site, though.
4. Diamond.com (Domain name worth Millions) – $7,500,000: In 2006, Odimo.com sold this domain to Ice.com, online jewelry retailer.
3. Porn.com (Domain name worth Millions)- $9,500,000: MXN picked up this scandalous domain in 2007, and at the time, it was the highest, all-cash transaction for any domain name ever, and the second highest domain sale of all time.
2. Fund.com (Domain name worth Millions)- $9,999,950: A New York firm formerly known as Meade Technologies Inc. snatched up this domain in 2008.
1. Sex.com (Domain name worth Millions)- $13,000,000: This domain is actually in the Guinness Book of World Records for being the priciest domain-only sale in history. Clover Holdings Ltd. bought it from Escom LLC in 2010.
Why Do They Sell For So Much?
It's simple: a domain name is a form of property, the type of property that can attract users to your website in turn earning you money on sales or ad clicks over the period of time you own it. It's the same thing as buying a house, except domain names keep making you money, if you purchase the right one, whether through your web hosting company or on your own. And if you compare it to a house that gains value over time with the proper renovations, it is the same thing.
Do Domain Names Increase In Value Over Time?
Yes, the value of certain domains can rise over time, just like your house. The more generic a name, the better: CNN now owns Money.com, so that when you type it into the browser, you are redirected to money .cnn.com, their Money site. Baby.com is owned by BabyCenter .com. Basically, if you can think of a generic word related to your business that someone will type directly into their browser, that's the domain you want to pick up through your web hosting company or on your own.
Can I Make My Money Back?
If you pay attention to who's visiting your site and adjust your content accordingly, yes. Basically, when you have an idea as to who is viewing your website, you can adjust your advertising and content to keep these visitors coming back.
If you are selling goods, you'll want to take a look at numbers. Are you selling low-priced items? You'll need to increase your traffic and sell a lot of these items to make your money back. If you are selling expensive items, it'll happen much faster.
How Do They Even Determine A Domain's Value?
A lot of factors go into determining how much a domain name is worth. Search engine ranking, content, traffic, etc. are all factors used to determine final value. Obviously, the more people visiting your site, the better.
Although the domains mentioned above sold for a pretty penny, it is unlikely your domain is worth that much. Typically, the going rate is below $2,000, so don't have unrealistic expectations when selling your domain name. Conversely, when your shared hosting company tells you how much the domain you request costs, don't be surprised.
Are you thinking about selling your domain? Is there anything not covered here that you have a question about? Let us know by commenting, and we can try to answer your questions in a future article!