The Power of Million-Dollar Domains

If you are interested in buying or selling domains, this one is for you!

In this episode, we discuss the power and influence of good domains, the importance of scarcity, and share some valuable tips on how to buy Million-Dollar Domains.

For a name to sell for over a million dollars, it will probably have to have benefits of over a million dollars.

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The power of domain names

Your domain name can be a unique and powerful asset for your brand and business. Choosing the right one, as Page explains, is a core future investment and a driver for the company’s valuation. Each domain name has its own set of attributes that can be cherished, allowing companies to improve their brand positioning and therefore their business, both in the short and the long run. 

Companies that choose the right name for scrollers to land on when diving online are able to curate an entire storyline for them. For example, let’s say you work in the travel & hospitality industry, now imagine you are lucky enough to own the domain name vacation.com. The possibilities are endless!

All the free clicks and publicity coming from this single word can offer your company infinite chances to redefine everything about it, which in turn, allows you to position your brand in the center of every travel story, increasing its visibility and memorability. 

Domain names are so influential that sometimes they are even used to make political statements. In January 2022, a big social media scandal emerged around the domain liar.com, which started redirecting visitors to Canada’s Prime Minister Justin Trudeau’s Wikipedia page. Some conspiracists suspect Elon Musk was responsible for this (Input Magazine, 2022), but the point is that getting the right domain can get you unlimited sources of traffic. 

Domain names have incredible power. They are truly unique, and we can see how someone that just wants to buy one can click a button, buy it, have it be delivered, and control where traffic goes.

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The domain gamble

According to Page, one important aspect to consider when planning to purchase a domain name is the price (Duh!). How much is the person browsing domain shelves willing to pay? How long is the owner willing to hold on to a domain in hopes of a better offer? 

There is no one determining whether the price the domain name is sold at is fair or not, you just compete with other buyers.

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Scarcity appears to be the underlying theme around pricing, supply & demand, and million-dollar domains. According to an article shared by Investopedia, 2020, when a product is scarce, consumers are faced with conducting their own cost-benefit analysis. A product in high demand but with low supply will likely be expensive, while the consumer is aware of that, they are also aware of the satisfaction or benefits it offers. Are the benefits greater than the costs? This is the ultimate equation for pricing a million-dollar domain.

Consider this when purchasing a domain name:

  • Study the return: as a buyer, this is another investment opportunity, and like any pricy opportunity, you should only purchase the product if you see greater benefits compared to the cost. After performing a cost-benefit analysis, and the advantages outweigh the asking price, then this is a potential million-dollar domain.

When buying a domain name, focus on the satisfaction and benefits it brings. Analyze how much it is worth the investment.

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  • Go for the one-word domains: usually, one-word domain names get more traffic, since they are generic concepts and easier to search. Even better if the word can be easily understood, remembered, and spread across the globe. A one-word domain name can help your brand extend across different categories and reach an international audience.
  • Be ready! As stressed by Page, you have to act quickly if you are being offered a domain that is the ultimate name for your brand. Only if you have done your previous analysis, and compared the best available options, you will be able to act fast and snatch the right one. Remember, there are fewer and fewer good-quality domains left, and time flies!

Before choosing to buy the best name for your company, you should be aware of the responsibilities and benefits of the name you want to obtain

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That was just the tip of the iceberg. If you are interested in finding out all the details, listen to the full replay above!

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