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How to Buy Your Brand Domain Name?

High-value .COM domain names are becoming common acquisitions for existing companies and startups alike. In some cases, organizations are paying seven or even eight-figure fees to purchase a domain. A recent example is that of Voice.com, which was sold by tech giant MicroStrategy for $30 million.

With such vast sums of money being spent on domain names, you would be forgiven for thinking that the whole process of acquiring a premium .COM domain is relatively simple. Unfortunately, there are several potential pitfalls that make buying a high-value domain name problematic.

Thanks to our experience of advising companies about domain name acquisitions, we have encountered many of these potential pitfalls, and have successfully manoeuvred around them. Here, we’re using our experiences as well as expert advice from our professional network to answer some of the most pressing questions about high-value domain acquisitions.

We start with the question of when to use a marketplace. This comes from a scenario in which a client was looking to acquire a four-letter .COM domain name, but it was already listed at popular marketplaces for a purchase price of $25,000. Is it best practice to directly acquire a domain name through a marketplace?

How to Valuate the Domain Name

One of the most difficult feats that you could undertake is accurately valuing a domain name. The perceived value of a domain varies depending on who is looking to acquire that name. For example, Ring founder Jamie Siminoff paid $1 million to acquire the Ring.com domain name because the perceived value of the domain name was higher for Ring since they needed a global Internet presence to sell their Ring doorbells from.

The question of how to value a domain name has long been argued amongst domain investors, brokers, and commentators. There is no way to consistently and accurately appraise domain names. However, we can use some metrics to find a valuation range.

How Much Does a New Domain Name Cost?

Buying a new domain name would typically cost you anywhere between $9 and $14.99 per year. However, these prices may differ based on the domain extension or the domain registrar you choose.

Bluehost – Free domain with hosting $2.75 / month
Domain.com – $7.45 for .com domain names with our coupon code
Network Solutions – $7.49 for .com with our coupon code or FREE with their web hosting package.
HostGator – Free domain with hosting $2.64 / month
GoDaddy – $11.99
DreamHost – Free domain with hosting $2.59 / month

These prices are for new .com domain names only. The pricing of other extensions such as .net, .org, .info, .blog, etc. will vary based on the domain registrar you use.

When it comes to domain extensions, we always recommend users to use .com because it’s the most popular one.

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