What Is A Domain Name Worth?

We are starting a business for which people will get a lot of information via our website. The problem is, the name that we want to use is parked. We paid Godaddy to give us an estimate of what it might cost to have this name with .com, .net etc. The .com name, they estimate could cost between $2,000 and $9,000.

My question is, have there been any studies done where we can see the validity of spending this kind of money in order to secure a name. In other words, is it going to be a worthwhile investment to secure the name? My gut tells me it is because this is the name people naturally think of without any prompting when we tell them what we are all about. I’m assuming that we eventually would educate potential buyers about any name we choose. After all, what does Pepsi mean? BUT, it also seems to me that it would be so much easier and FASTER to name ourselves what people naturally would call us and use to find us on the web.


Jay’s Answer: If the name wasn’t taken, and it’s the name people think of off-the-bat, I’d suggest taking it.

Given it has a $2-5K cost, you need to evaluate if it’s worth it to your business long-term. If your competitor got this URL, how would that affect you?

I recommend to my clients that they pick names that are easy to spell and remember. That’s what sticks in people’s brains when they’re talking to each other. If you are a for-profit company, get a .com suffix.

Names are what you make of them. Ideally, the URL matches the company name. If not, people who type in: yourcompany.com and get a different website may wind up at your competitors’.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.