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Is It Worth Buying A Premium Domain Name At An Auction? by Alex D

Is It Worth Buying A Premium Domain Name At An Auction? by
Article Posted: 04/29/2015
Article Views: 140
Articles Written: 182
Word Count: 693
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Is It Worth Buying A Premium Domain Name At An Auction?

We all want to have a short, sweet and descriptive domain name for our online services or business. But what if it has already been taken? Can we get the name of our choice if it is a unique one? Though most of us don't care much about our domain name, the truth is that the domain name is something which will first latch onto a customer's memory. Whether it is conventional advertising methods or modern online systems, all forms of promoting your self can be quite expensive. But is this expense justified? This article deals with the cost-benefit analysis of buying a Premium Domain Name rather than sticking to any standard name that maybe available to you.

High Price?

Premium Domain Names sell between $1000 to $15000. But it seems that people are still willing to buy them at that price. But what could the reason be? The Domain Name is an intellectual property, just like your brand name or trade name. Infact in Trademark law jargon, a domain name is often referred to as a Domain Mark. It is an identifier or an identity of your business or product or service. Since it is intangible, it is exactly like the Goodwill of your business. It is in effect priceless. You cannot put a price on the domain name since the returns that you may get cannot be quantified and neither can you justify their high price.

It is exactly like having a logo designed for your business. You will never be able to quantify how valuable the logo has been for your business. You may definitely face criticism for a bad design or get compliments for a refreshingly new design, but you will never get exact feedback of how much more revenue it brought into your business. Did the logo influence a larger number of customers than it would have influenced had it been something different? Was another shortlisted logo a better choice for the type of crowd that you are planning to target? These and other similar questions you may never know the answers of. In the same way, you will not be able to pinpoint whether it was the domain name that influenced buyers on your website or it was some other element in your marketing campaign that did the trick. Hence, attempting to place a definite value on a premium domain name is a futile exercise.

Past History

One key factor which could determine the value of a domain name is how well it has performed till date and for what type of business or product. There are various online tools which help you gauge the value of a website based on the value of its traffic and business potential. A website with a dubious reputation may also be having bad reviews placed all over the internet. This may mislead visitors and discourage them from dealing with you. This maybe one of the reasons why the domain name is now available for sale. Similarly, there maybe some domain names which have not been renewed or were lost due to carelessness of the previous owner and have been picked up by some auction sites. Such domain names command a handsome price but may also be able to give you good returns. Doing some basic research and due diligence to determine the possible past reputation may help you strike a good deal.

While premium domain names can give your business a major headstart, it is ultimately going to boil down to how well you can monetize the domain name. Just because a domain name is priced high, does not necessarily mean that it is worth that price. Though you may want to consider that a reputed domain auctioneer would have made a calculated guess on how much it would sell for and accordingly fixed the price. In domain name sales there is no fixed price and you can beat down the other party on the pricing almost always.

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