What is a Domain name worth?

November 14th, 2006 by Bob Bly

The owner of the domain name www.hell.com recently offered it for sale with a minimum price of $1 million.

No takers.

Not surprising. After all, who wants to tell their prospects, “Go to hell”?

The owner of www.sex.com was a little more successful in selling his domain name.

Care to guess what such a domain is worth in today’s market … and what price he sold it for?

A. $100,000
B. $1 million
C. $10 million
D. More.
E. No takers.

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This entry was posted on Tuesday, November 14th, 2006 at 11:56 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

29 responses about “What is a Domain name worth?”

  1. Brendon Sinclair said:

    Hi Bob

    D for sure.

    825,972 searches last month alone for sex.com. So multiply that by 100.
    That’s 82,597,200 direct url visitors per month alone.

    You give me a store where 82 million targeted and qualified and interested visitors walk in each month and I’ll show you a place that charges a lot more than $10 million for the rent or the whole building.

    Cheers

    Brendon

  2. Frank Catalano said:

    It’s a stretch saying that anyone who comes to a generic domain name is a “qualified” visitor. The more generic the name, the less qualified the visitor is likely to be, since a generic name is too darned broad to qualify someone.

    It’s that kind of thinking that led to ridiculous valuations of domains during the dot-com boom years, and the failure of many companies that relied on the domain to do their marketing for them.

    Sure, some might use such a domain as a catch-all to capture search engine traffic and deliver up text and other ads. But that’s not building a business; that’s gaming the current state of the system.

    I’d say A or D.

  3. Jodi Kaplan said:

    I’d say the answer is D. However, as Frank pointed out, while such a site may generate a great deal of traffic, it doesn’t mean those visitors are qualified. In other words, 14 year old boys may be highly motivated and interested to visit such a site, but you can’t (or shouldn’t) sell them anything!

  4. Jonathan Kantor said:

    I’d say E – no takers.

    After what company wants to end their advertisements with the statement: “For more information you can go to hell(.com)”

  5. Derrick Daye said:

    Just a quick comment on Hell.com…

    From a differentiation standpoint it has some real promise. Going to hell doesn’t have to be a bad thing and if you feel like you’re already there you could go to ‘hell.com’ for some salvation. For the right organization this could be a worthy domain. Is it worth a million? Crazier things have happened in the marketing universe.

  6. Mordechai (Morty) Schiller said:

    Bob–Don’t know if copywriters go to hell. (Some have been there and back!) But the one who had the foresight to stake a claim on “Business.com” made out like a bandit! Of course, it may be he was just in the right place at the right time.

  7. Frank Catalano said:

    Just in case folks think domain-name madness is limited to .com, I received a newsletter today from one of my domain registrars, DomainPeople, about the new .mobi domain (quoting the DomainPeople.com customer newsletter below):

    “As it was promised by mTLD (the .mobi Registry) the first set of the premium .mobi domain names was auctioned at the T.R.A.F.F.I.C Conference on October 27, 2006 … The .mobi domains auctioned were:

    DotMobiName: Sold for:
    Celebs.mobi $2,250 USD
    Wow.mobi $9,000 USD
    Gossip.mobi $5,000 USD
    StockQuotes.mobi $27,000 USD
    Flowers.mobi $200,000 USD
    Hot.mobi $40,000 USD
    Party.mobi $13,000 USD
    Laugh.mobi $3,000 USD
    Fun.mobi $100,000 USD”

    Hard to tell, though, how many buyers plan to flip these domains to others, how many plan to use them as search engine ad farms, and how many plan to actually build a sustainable business.

  8. Andrew Johnson said:

    The exact price wasn’t disclosed but it is believed to be upwards of $12 million. Oddly enough, the site allegedly earned its owner (through domain hijacking) more than this during the 90s.

    Domain name valuations are tricky. The really good deals are almost all gone. The more comfortable buyers feel paying money for domains the more their value increases. Once viewed as pure speculation, generic domains are now seen as corner stone to an online business, more akin to real estate than a collectible.

  9. PR7 Website for Sale said:

    Can you believe what a PR7, PageRank7 website sells for?

  10. Abby said:

    Looks nice

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  15. Cathy said:

    I believe the answer is not any of the above. According to http://www.soldnames.com/top/com, it sold for $14,000,000. It is listed at the top of the .com page.

  16. Cathy said:

    Whoops — So sorry! ;-) I submitted before looking at the choices above a second time. Yes… the answer is D.

  17. brenda said:

    I dont have a domain but see that there is an even better name for sell on ebay today. They are at just 60.00 for the domain name to be sent
    It is http://www.youfucks.com I think the link is there to follow the auction. It ends soon or in a day or such. Let me know if it is worth a bid of 200.00 or 100.00

    ??? I know youporn is big so that could be a good name or just really cool either way.?? Please let me know I plan to bid..

  18. byran said:

    I found out whom owned that site and sold youfucks.com so cheap. I put that as my site link on my name. I am so shocked it did not sell for so much more.
    I wish I saw that before I would have bought it. You are nuts to not have bid on it. That sold for 60.00 and a year of the name paid up. I wish I saw it before! WOW CRAZY STUFF!
    they seem to also own http://www.microsoftvideos.com and she said she would post it on her page when she sells that but does not expect more than 100.00 for it. GEEZE MS Would probably pay millions for it.

  19. Anthony said:

    I found this while searching for answers on what i actually have in my possession. I am torn between excitement and bummed all at the same time. I own http://www.sex.idv.tw i was able to get it last night. From reading what you have said here i could or could not have something worth real money!
    Any advise? I paid 39.00 for it, could i at least get that back out of it?

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