You have a product or service idea, created a business plan and now you are ready to begin your journey as a company. It is time to get your company name out there. When beginning your online business, we suggest you start with buying a domain.
However, there are lots of questions that come with buying a domain name. If you are a first time domain name buyer, you probably do not know where to start. Some frequently asked questions at Saw.com are: What is a domain name? How do I buy a domain name? What if I don’t know what domain name to buy? How do I find the domain name I want? And of course, how much does a domain name cost?
Today, we are going to discuss everything that involves the costs of domain names. What affects the cost, why premium domain names have a larger price tag and what you should be spending.
How Much Does a Domain Name Cost?
There is no one simple answer here. Domain names range in price anywhere from $10 to $49.7 million, which was the sale of CarInsurance.com. Why is there no simple answer? Because domain names vary in price depending on different factors.
What Affects the Cost of Domain Names?
There are many factors that affect the cost of domain names. However, here are a few common ones to look out for while searching for a domain name:
1. Domain Extensions
Domain extensions are the last part of a domain name. Top level domain extensions include, .com, .gov, .edu, .mil, .net and .org. In recent years, more unique domain extensions have been used. These include, .yoga, .blog, .vip and more.
Extensions affect the price of domain names since some are more valuable than others. Many people feel that the .com is king of domains, since they are the most searched for online. Top level domain names typically cost much more than unique domain extensions.
2. Premium Domains
In addition to the domain extension, premium domain names are also a factor when it comes to the cost. Premium domain names are high quality domains, usually one word that is memorable and easy to spell. For example, Amazon.com, Cars.com, Target.com, Hotels.com and Voice.com.
These domains are brandable and memorable, but come with a large price tag.
3. Where You Purchase the Domain
Where you decide to purchase the domain is also important to consider. Especially since this could potentially affect the cost. There are many places to find domains for sale – but prices vary. A private seller might be more expensive than an aftermarket auction, and using a registrar depends on the domain name.
Using a domain broker that is familiar with the industry is usually the way to go. A domain broker can answer all of your questions, work with your budget and conquer the hard parts like negotiating and closing the sale.
Unregistered vs. Registered Domain Price
Again, the price of a domain really depends on many different factors. However, here are some things to think about when purchasing either an unregistered or premium domain.
Purchasing an unregistered domain name is typically the cheaper option. Many unregistered domain names go for about $10-$20 a year. You will also get to avoid negotiating and dealing with private sellers.
The downside? You probably will not get your ideal domain name. The odds of finding your brand name, unregistered, is fairly unlikely. You will have to be open minded while searching for an unregistered domain.
This is a common option for small businesses or startups looking to make their first domain purchase. It is a smaller investment, and easiest while getting your company off the ground. From here, you can plan to upgrade down the road.
As we have discussed, a premium domain is more desirable. They are shorter, easier to spell, memorable and brandable. Hence, why everyone wants them for their company.
They come with a huge asking price, usually anywhere from a three figure number to seven or eight figures. Although the amount can be scary, investing in a premium domain name can do wonders for your company. Owning a premium domain name brings more site traffic, improves credibility, brings returning customers and so much more.
The Decision is Yours
No matter what size company you are, your business needs a domain name.
It is your online address, the way people will find you while surfing the Internet. It is up to you whether you want to spend $200, $20,00 or $2 million on the domain you want. You need to decide what is the right decision for your business. Look around at your assets, make a business plan and decide where your domain name will fit into your budget. You can always change and upgrade your domain name down the road.
Ready to Buy a Domain?
Are you ready to launch your company website? Let us help you find the perfect domain name for you and your brand!
Our mission is to help businesses large and small be seen online. Our domain brokers are experts in domain acquisition, appraisal, branding, brand protection, portfolio management services and more. We pride ourselves in our transparency and passion to help you reach your goals. Additionally, we handle the nitty-gritty work for you.
If you are interested in speaking with an expert from our domain brokerage service about buying a domain, please contact us for a free consultation.