Don’t Pay Lots of Money for a Domain
I wanted to buy a domain today. I found that both the domain I wanted, 123.com let’s call it, and a variation, the123.com, appeared to be available. The former was for sale from a brokerage, the latter through any registrar.
Though I’m perfectly content with the123.com, I contacted the domain brokerage out of curiosity, to see how much it would cost. I was expecting a silly quote, in the $100s, possibly even in the $1000s. Instead, I got this reply:
Hi Riley,
My name is [redacted], and I am a Broker with [redacted].com. I represent the current owner of [example: 123.com].
I was able to speak with the seller and based on many criteria they have determined a value of $95,000.00 USD.
If you have any questions, please let me know.
I laughed out loud – seriously – and nearly fell off my chair.
What did I find so funny?
Well, I was laughing at the idea that anyone in the world – especially an individual but even a large company – would pay 5 figures US (6 figures Canadian!) for a domain name in 2018. Now, I don’t doubt that there are people out there who would do this, but they are foolish.
Why?
Your domain name does not determine your traffic to your website.
Sure, it’s helpful for branding to have a domain name that is exactly-your-brand.com, and there is a very minor SEO benefit, but if your domain isn’t an exact match, it’s hardly the end of the world.
Websites succeed with different urls all the time, and there is now a trend of getting cute with your url, such as the podcast platform tryca.st, to pick but one example.
The point is that your exact url does not matter all that much and so many other things do, so to spend 10s of 1000s of dollars on a url is bonkers.
What is perhaps more bonkers is that this brokerage thought that a random person contacting them could be bilked into spending that much money on a url. It suggests that there are still many people – and companies, no doubt – who are foolish enough, or rich enough, to think that paying US$95,000 for a domain name is a good use of money.
It’s not. Don’t do it.