Why Would I Spend Six Figures On A Domain?

Michael Gargiulo - CEO, VPN.com

By: Michael Gargiulo, CEO at VPN.com

Updated: 5:00 PM ET Tue, October 5th 2021

For new businesses, spending six figures on a domain is practically unthinkable. Even spending a few hundred dollars might seem excessive depending on your budget. Six-figure domains might seem like a luxury for the world’s biggest companies, but smaller businesses can benefit from buying a premium domain name. The best domain names can grab your customers’ attention immediately, letting them know that they’re in for a great browsing experience. Here’s a look at some of the premium domain benefits.

Some Benefits Of A Premium Domain Name

A domain name isn’t just a status symbol–it’s a marketing tool that helps you gain a loyal customer base. Customers are more likely to order from a business with a professional domain name rather than a confusing domain that’s awkward and hard to remember. Here’s why some of the biggest companies are willing to spend six figures–or more–on their domain name:

  • Good domain names are easy to remember. When you market your business, you need to provide customers with a clean, memorable URL. If they forget your domain name because it’s clunky and confusing, you’ve just lost a potential sale. You need to make the whole process as easy as possible to secure the biggest number of visitors.
  • You can redirect a common domain name to your actual website. For example, pets.com redirects to the PetSmart site. People will type in the domain name out of curiosity, then find your site and potentially place an order.
  • Your domain name helps customers determine whether you’re a professional business or not. Most people won’t place an order from a website with a domain like jennyscrafts445.com–websites with URLs like that tend to be sketchy and unreliable. However, a domain like jennyscrafts.com is professional and authoritative, showing customers that they can trust your business.
  • Strong domain names show that you’re a leader in the industry. Even if you buy the URL pizza.com and redirect it to your real website, you’re still showing visitors that you’re committed enough to invest in a pricey domain name. This immediately builds trust in your brand.
  • A good domain name builds brand recognition. When you use your business or personal name as your domain, people quickly start to associate that name with your brand. That’s why a website called cathysgifts.com would be more successful than a site called cathys-store34.com.
  • If your domain name contains a keyword, it could boost your search engine rankings. You’ll still need to incorporate search engine optimization (SEO) into your website, but the keyword in the domain gives you an extra boost.

For these reasons and more, businesses are willing to spend a little extra money when they buy a domain name. Some domain names have even sold for millions of dollars in the past.

Is Six Figures For A Domain Name An Unreasonable Price?

At first glance, asking six figures for a domain name might seem outrageous. What gives these domain owners the right to charge hundreds of thousands of dollars for a URL that you type into a text box? What many people don’t realize is that these domain owners have earned the right to charge thousands of dollars. In fact, some of these domain names are practically a bargain considering how much they’re worth.

Many of these owners snagged their domains all the way back in the 90s–long before the Internet was as ubiquitous as it is today. At the time, nobody knew that the Internet would become one of the world’s biggest forms of communication. Essentially, these people jumped in early, and they’ve held onto these domains for decades. This kind of investment and dedication earns them the right to charge a high price for their domain names. After all, they’re not just a name–they’re a piece of Internet history.

Domain names are also part of a competitive market. Everyone wants to have the simplest, most common domain name–and they’re willing to pay a high price for it. When they place a bid, other parties place their own bids at comparable prices. The market decides how much the domain name is worth. Six figures might sound like a lot, but the owner has the right to consider large offers from high-paying businesses.

Some people feel like domains should be priced according to their levels of use. A small business probably won’t use a domain name as a major business that makes millions of dollars in sales, so why should they pay the same price? However, domain owners don’t base their prices on actual usage. Instead, they base their prices on the domain’s potential. This means that everyone pays the same price regardless of their business size.

How Do I Know When A Domain Is Worth Six Figures?

The most premium domain names consist of a single common word. This could include cats.com, pizza.com, pets.com or books.com. Everyone familiar with the English language knows these words–and they rack up thousands of views just from curious browsers. Essentially, these domain names are some of the most sought-after real estate on the Internet.

Most premium domain names also have a .com extension. Because .com extensions are the most common extensions in the world, .com domains get more visitors than .org or .net domains. This also means that virtually every common word with a .com extension has been claimed. In fact, it’s increasingly difficult to find a basic, easy-to-remember domain with a .com extension. The scarcity makes these domains incredibly valuable.

Recently, new extensions like .app or .service have appeared on the market. You’ll have a bigger chance of claiming a simple domain name with one of these extensions. However, since they don’t have the classic .com extension, they’re harder to remember and a little more difficult to market. These domains usually don’t sell for six figures.

You could also call a domain name “premium” just because it’s popular. Pizza.com and antelope.com are both single-word domains, but “pizza” is obviously a much more common word. This makes it more valuable than a domain name with a less popular word or phrase.

Finally, one of the biggest advantages of owning a premium domain is that it’s a virtually permanent form of advertisement. Commercials and banner ads will disappear, but you’ll always have your premium domain name as long as you keep renewing it. This is why it’s important to keep track of your domain so the ownership doesn’t lapse.

Is Every Premium Domain Taken?

At this point, most premium domain names are taken. You might find the odd domain with an unusual word or phrase, but those domain names aren’t necessarily in high demand anyway. Companies and individuals bought most of the .com domains long ago. Since .net and .org domain names are less common, you might be able to snag a single-word domain–however, those domains are also a little less valuable. For the most part, acquiring a premium domain requires time and monetary investment.

Can Domain Names Be A Good Investment?

With more people logging onto the Internet every day, premium domain names are becoming increasingly scarce. For some buyers, domain names aren’t a link to their website–they’re an investment that might result in major profits. A good domain name could sell for thousands or millions of dollars if they find the right buyer. This has encouraged some people to invest in domain names while they can and take advantage of the virtually inevitable rise in prices.

Unfortunately, premium domain names aren’t getting any cheaper. If you want to invest in domain names, you might want to get started as soon as possible. The best domain names often cost five or six figures and might require the use of a domain broker. You could hang onto the domain name or use it for your website, then sell it when the market looks right.

A wise investment could result in a large profit in the future. Unfortunately, you can’t predict exactly what will happen in the next ten years, but you could start looking at domain names and think about where the market is heading. For example, with food delivery services booming, you could invest in domain names related to that industry.

Do I Need A Premium Domain Broker?

When you search for a premium domain name online, you might find an offer to use a domain broker. A domain broker can negotiate for a premium domain name on your behalf. Domain brokers typically work with high-end domains that cost five or six figures and are difficult to purchase on the open market. Here’s what a domain broker could do for you:

  • If possible, they’ll get in touch with the domain owner. This can be challenging without a broker because that information isn’t always available to the public. The domain broker will start with public registries, then call or email people who might be able to contact the owner.
  • Once they reach the domain owner, the broker will negotiate for the domain name on your behalf. They’ll suggest a price that fits within your budget but still looks attractive to the buyer. The negotiation process could take anywhere from several days to a few weeks.
  • When the domain owner accepts the offer, you’ll start the process to transfer ownership. Soon, you’ll have complete control over the domain.

Note that none of this is guaranteed. Your domain broker will search for the owner through every legal avenue, but if the owner doesn’t want to be contacted, you probably won’t be able to secure the domain. Additionally, not all domains are for sale. There’s also no guarantee that the owner will accept your offer even if it’s what they asked for.

However, domain brokers have connections and authority that you don’t have on your own. Working with a domain broker could open the door to premium domains that would otherwise be unavailable. For this reason, hiring a broker is often worth your investment. The broker might accept a one-time fee, plus a commission if they complete the sale.

Should I Spend Six Figures On A Domain Name?

Ultimately, it’s up to you. Premium domain names don’t come cheap, but they’re one of the most valuable online assets that you can own. When you type in pizza.com or books.com, you automatically have a high opinion of the website that appears. The owners of that site put time, money and commitment into securing a high-end domain, showing that they’re a leader in their industry. Your customers will have the same experience when you invest in a premium domain.

Unfortunately, many premium domains are off the market. However, some owners are willing to sell if they get the right offer. You could own a piece of Internet history by purchasing a domain that the owner created in the 90s. If you think that a domain might increase in value, you could buy it now and sell it later to make a profit. Domain names are a commodity like anything else–and for your business, they’re also a marketing tool. Never underestimate what a premium domain could do for your company.

Worldwide Premium Domain Brokers

Helping you acquire premium domain names in any country you desire. Inquire today about our Global Brand Protection Program if you want to register your brand in EVERY country.

North America Domains

Country

Bermuda

Canada
Greenland
Mexico
Saint Pierre
United States

Domain
.bm
.ca
.gl
.com.mx, .mx
.pm
.us, .com
Language
English
French, English
Greenlandic
Spanish
French
English
Capital
Hamilton
Ottawa
Nuuk
Mexico City
Saint-Pierre
Washington D.C.
Pop.
62,278
37,742,154
56,770
128,932,753
5,794
331,002,651

Africa Domains

Country

Algeria

Angola
Antarctica
Benin
Botswana
Burkina
Burundi
Cameroon
Cape Verde
Central African Republic
Chad
Cote D'Ivoire
Dem. Congo
Djibouti
Egypt
Equatorial Guinea
Gabon
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Libya
Madagascar
Malawi
Mali
Mauritania
Mauritius
Mayotte
Morocco
Mozambique
Namibia
Niger
Nigeria
Congo
Reunion Island
Rwanda
Sao Tome
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
St. Helena
Sudan
Tanzania
The Gambia
Togo
Tunisia
Uganda
Zambia
Zimbabwe
South Sudan
Domain Extension
.dz
.co.ao
.aq
.bj
.bw
.bf
.bi
.cm
.cv
.cf
.td
.ci
.cd
.dj
.com.eg, .eg
.gq
.ga
.com.gh
.com.gn
.gw
.ke
.co.ls, .ls
.com.lr
.ly
.mg
.mw
.ml
.mr
.mu
.yt
.co.ma, .ma
.co.mz
.na
.ne
.ng
.cg
.re
.rw
.st
.sn
.sc
.sl
.so
.co.za
.sh
.sd
.co.tz
.gm
.tg
.com.tn, .tn
.com.ug, .ug
.com.zm
.co.zw
.com.ss
Language
Arabic
Portuguese
Russian, English
French
English
French
French, English, Kirundi
French, English
Portuguese, Creole
Sango, French
French, Arabic
French
French
Arabic, French
Arabic
Spanish, French, Portuguese
French
English
French
Portuguese
Swahili, English
Southern Sotho, English
English
Arabic
Malagasy, French
English
French
Arabic
Mauritian Creole
French
Arabic
Portuguese
English
French
English
French
Reunion French Creole
Kinyarwanda, English, French
Portuguese
French
English, Seselwa, French
English
Somali
Zulu, Xhosa, Afrikaans, English
English
Arabic, English
Swahili, English
English
French
Arabic
Swahili, English
English
Shona, Ndebele, English
English
Capital
Algiers
Luanda
N/A
Porto-Novo
Gaborone
Ouagadougou
Gitega
Yaoundé
Praia
Bangui
N'Djamena
Yamoussoukro
Kinshasa
Djibouti
Cairo
Malabo
Libreville
Accra
Conakry
Bissau
Nairobi
Maseru
Monrovia
Tripoli
Antananarivo
Lilongwe
Bamako
Nouakchott
Port Louis
Mamoudzou
Rabat
Maputo
Windhoek
Niamey
Abuja
Brazzaville
Saint-Denis
Kigali
São Tomé
Dakar
Victoria
Freetown
Mogadishu
Cape Town
Jamestown
Khartoum
Dodoma
Banjul
Lomé
Tunis
Kampala
Lusaka
Harare
Juba
Pop.
43,851,044
32,866,272
4,490
12,123,200
2,351,627
20,903,273
11,890,784
26,545,863
561,198
4,829,767
16,425,864
26,378,274
89,561,403
988,000
102,334,404
1,402,985
2,225,734
31,072,940
13,132,795
1,968,001
53,771,296
2,142,249
5,057,681
6,871,292
27,691,018
19,129,952
20,250,833
4,649,658
1,271,768
272,815
36,910,560
31,255,435
2,540,905
24,206,644
206,139,589
5,518,087
895,312
12,952,218
219,159
16,743,927
98,347
7,976,983
15,893,222
59,308,690
6,077
43,849,260
59,734,218
2,416,668
8,278,724
11,818,619
45,741,007
18,383,955
14,862,924
11,193,725

Asia Domains

Country

Afghanistan

Armenia
Azerbaijan
Bangladesh
Bhutan
British Indian Ocean Territory
Brunei
Cambodia
China
Christmas Island
Georgia
Guam
Hong Kong
India
Indonesia
Japan
Kazakhstan
Kyrgyzstan
Laos
Macao
Malaysia
Maldives
Mongolia
Myanmar
Nepal
Niue
Pakistan
Palestine
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Tajikistan
Thailand
Timor Leste
Turkmenistan
Uzbekistan
Vietnam
Domain
.af
.am
.az
.com.bd
.bt
.io
.com.bn
.com.kh
.cn, .com.cn
.cx
.com.ge, .ge
.com.gu
.com.hk, .hk
.co.in, .in
.co.id, .id
.jp
.kz
.kg
.la
.mo
.com.my, .my
.mv
.mn
.com.mm
.com.np
.nu
.pk
.com.ps, .ps
.ph
.com.sg, .sg
.com.kr, .kr
.lk
.com.tw, .tw
.com.tj, .tj
.co.th
.tl
.tm
.uz
.com.vn
Language
Pashto, Dari
Armenian
Azerbaijani
Bengali
Dzongkha
English
Malay
Khmer
Mandarin
English
Georgian
Chamorro, English
Cantonese, Mandarin, English
Hindi, English
Indonesian
Japanese
Kazakh, Russian
Kyrgyz, Russian
Lao
Cantonese, Portuguese
Malay
Dhivehi
Mongolian
Burmese
Nepali
Niue, English
Urdu, English
Arabic
Filipino, English
Malay, Tamil, English, Mandarin
Korean
Sinhala, Tamil
Mandarin
Tajiki
Thai
Portuguese, Tetun
Turkmen
Uzbek
Vietnamese
Capital
Kabul
Yerevan
Baku
Dhaka
Thimphu
Camp Justice
Bandar Seri Begawan
Phnom Penh
Beijing
Flying Fish Cove
Tbilisi
Hagåtña
City of Victoria
New Delhi
Jakarta
Tokyo
Nur-Sultan
Bishkek
Vientiane
Macao
Kuala Lumpur
Malé
Ulaanbaatar
Naypyitaw
Kathmandu
Alofi
Islamabad
Ramallah, East Jerusalem
Manila
Pulau Ujong
Seoul
Sri Jayawardenepura Kotte
Taipei
Dushanbe
Bangkok
Dili
Ashgabat
Tashkent
Hanoi
Pop.
38,928,346
2,963,243
10,139,177
164,689,383
771,608
3,000
437,479
16,718,965
1,439,323,776
1,843
3,989,167
168,775
7,496,981
1,380,004,385
273,523,615
126,476,461
18,776,707
6,524,195
7,275,560
649,335
32,365,999
540,544
3,278,290
54,409,800
29,136,808
1,626
220,892,340
5,101,414
109,581,078
5,850,342
51,269,185
21,413,249
23,816,775
9,537,645
69,799,978
1,318,445
6,031,200
33,469,203
97,338,579

Caribbean Domains

Country

Anguilla

Antigua
Aruba
Bahamas
Barbados
British Virgin Islands
Cayman Islands
Curacao
Dominica
Dominican Republic
Grenada
Guadeloupe
Haiti
Jamaica
Martinique
Montserrat
Puerto Rico
Saint Lucia
Sint Maarten
St. Kitts and Nevis
St. Vincent and the Grenadines
Trinidad and Tobago
Turks and Caicos
U.S. Virgin Islands
Domain Extension
.ai
.ag
.aw
.bs
.bb
.vg
.com.ky, .ky
.com.cw, .cw
.dm
.do
.gd
.gp
.ht
.com.jm
.mq
.ms
.com.pr, .pr
.lc
.sx
.kn
.com.vc, .vc
.tt
.tc
.com.vi, .vi
Language
English
English
Dutch, Papiamento
English
English
English
English
Dutch, English, Papiamento
English
Spanish
English
French
Haitian Creole, French
English
French
English
Spanish, English
English
Dutch, English
English
English
English
English
English
Capital
The Valley
Saint John's
Oranjestad
Nassau
Bridgetown
Road Town
George Town
Willemstad
Roseau
Santo Domingo
Saint George's
Basse-Terre
Port-au-Prince
Kingston
Fort-de-France
Plymouth, Brades
San Juan
Castries
Philipsburg
Basseterre, Charlestown
Kingstown
Port of Spain
Cockburn Town
Charlotte Amalie
Pop.
15,003
97,929
106,766
393,244
287,375
30,231
65,722
164,093
71,986
10,847,910
112,523
400,124
11,402,528
2,961,167
375,265
4,992
2,860,853
183,627
42,876
53,199
110,940
1,399,488
38,717
104,425

Central America Domains

Country

Belize

Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
Domain
.bz
.cr
.com.sv, .sv
.com.gt, .gt
.hn
.com.ni, .ni
.pa
Language
English
Spanish
Spanish
Spanish
Spanish
Spanish
Spanish
Capital
Belmopan
San José
San Salvador
Guatemala City
Tegucigalpa
Managua
Panama City
Pop.
397,628
5,094,118
6,486,205
17,915,568
9,904,607
6,624,554
4,314,767

Europe Domains

Country

Aland Islands

Albania
Ascension Island
Austria
Belarus
Belgium
Bosnia
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Faroe Island
Finland
France
Germany
Gibraltar
Greece
Guernsey
Hungary
Iceland
Ireland
Isle of Man
Italy
Jersey
Latvia
Liechtenstein
Lithuania
Luxembourg
Macedonia
Malta
Moldova
Monaco
Montenegro
Netherlands
Norway
Poland
Portugal
Romania
Russia
San Marino
Serbia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Ukraine
United Kingdom
Domain Extension
.ax
.al
.ac
.at
.by
.be
.ba
.bg
.hr
.cy
.co.cz, .cz
.dk
.ee
.fo
.fi
.fr
.de
.gi
.com.gr, .gr
.gg
.hu
.is
.ie
.im
.it
.je
.lv
.li
.lt
.lu
.mk
.com.mt, .mt
.md
.mc
.me
.nl
.no
.com.pl, .pl
.pt
.ro
.com.ru, .ru
.sm
.co.rs, .rs
.sk
.si
.com.es, .es
.se
.ch
.com.ua, .ua
.co.uk, .uk
Language
Swedish
Albanian
English
German
Belarusian, Russian
Dutch, German, French
Bosnian, Croatian, Serbian
Bulgarian
Croatian
Greek, Turkish
Czech
Danish
Estonian
Faroese, Danish
Finnish, Swedish
French
German
English
Greek
English
Hungarian
Icelandic
Irish, English
Manx, English
Italian
French, English
Latvian
German
Lithuanian
Luxembourgish, German, French
Macedonian, Albanian
Maltese, English
Romanian
French
Montenegrin
Dutch
Norwegian
Polish
Portuguese
Romanian
Russian
Italian
Serbian
Slovak
Slovenian
Spanish
Swedish
German, Romansh, French, Italian
Ukrainian
English
Capital
Mariehamn
Tirana
Georgetown
Vienna
Minsk
Brussels
Sarajevo
Sofia
Zagreb
Nicosia
Prague
Copenhagen
Tallinn
Tórshavn
Helsinki
Paris
Berlin
Gibraltar
Athens
Saint Peter Port
Budapest
Reykjavík
Dublin
Douglas
Rome
Saint Hellier
Riga
Vaduz
Vilnius
Luxembourg
Skopje
Valletta
Chișinău
Monaco
Podgorica
Amsterdam
Oslo
Warsaw
Lisbon
Bucharest
Moscow
San Marino
Belgrade
Bratislava
Ljubljana
Madrid
Stockholm
Bern
Kyiv
London
Pop.
29,900
2,877,797
7,915
9,006,398
9,449,323
11,589,623
3,280,819
6,948,445
4,105,267
1,207,359
10,708,981
5,792,202
1,326,535
52,934
5,540,720
65,273,511
83,783,942
33,691
10,423,054
63,000
9,660,351
341,243
4,937,786
85,033
60,461,826
173,863
1,886,198
38,128
2,722,289
625,978
2,083,374
441,543
4,033,963
39,242
628,066
17,134,872
5,421,241
37,846,611
10,196,709
19,237,691
145,934,462
33,931
8,737,371
5,459,642
2,078,938
46,754,778
10,099,265
8,654,622
43,733,762
67,886,011

Middle East Domains

Country

Arab Emirates

Bahrain
Iraq
Israel
Jordan
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
Yemen
Turkey
Domain
.ae
.bh
.iq
.co.il
.jo
.com.kw
.com.lb
.com.com, .om
.qa
.com.sa, .sa
.com.ye
.com.tr
Language
Arabic
Arabic
Kurdish, Arabic
Hebrew
Arabic
Arabic
Arabic
Arabic
Arabic
Arabic
Arabic
Turkish
Capital
Abu Dhabi
Manama
Baghdad
Jerusalem
Amman
Kuwait City
Beirut
Muscat
Doha
Riyadh
Sana'a
Ankara
Pop.
9,890,402
1,701,575
40,222,493
8,655,535
10,203,134
4,270,571
6,825,445
5,106,626
2,881,053
34,813,871
29,825,964
84,339,067

Oceania Domains

Country

American Samoa

Australia
Cocos Islands
Cook Islands
Fiji
French Polynesia
Heard and McDonald Islands
Kiribati
Mariana
Micronesia
Nauru
New Caledonia
New Zealand
Norfolk
Palau
Pitcairn
Samoa
Solomon Islands
Tokelau
Tonga
Tuvalu
Vanuatu
Wallis and Futuna
Domain Extension
.as
.com.au
.cc
.co.ck
.com.fj
.com.pf, pf
.hm
.com.ki
.mp
.fm
.nr
.nc
.co.nz, .nz
.nf
.pw
.pn
.ws
.sb
.tk
.to
.tv
.vu
.wf
Language
Samoan, English
English
English
Rarotongan, English
Fijian, English, Fiji Hindi
French
English
Kiribati, English
Chamorro, Carolinian, English
English
Nauruan, English
French
Maori, English
English, Norfuk
Palauan, English
English
Samoan, English
English
Tokelauan, English
Tongan, English
Tuvaluan, English
French, English, Bislama
French
Capital
Pago Pago
Canberra
West Island
Avarua District
Suva
Pape'ete
N/A
Tarawa
Saipan
Palikir
Nauru
Nouméa
Wellington
Kingston
Ngerulmud
Adamstown
Apia
Honiara
Nukunonu
Nuku'alofa
Funafuti
Port Vila
Matā'utu
Pop.
55,191
25,499,884
544
17,564
896,445
280,908
0
119,449
57,559
548,914
10,824
285,498
4,822,233
1,748
18,094
50
198,414
686,884
1,357
105,695
11,792
307,145
11,239

South America Domains

Country

Argentina

Bolivia
Brazil
Chile
Colombia
Ecuador
Falkland Islands
French Guiana
Guyana
Paraguay
Peru
S.Georgia and S.Sandwich Islands
Suriname
Uruguay
Venezuela
Domain Extension
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Language
Spanish
Spanish
Portuguese
Spanish
Spanish
Spanish
English
French
English
Paraguayan Guarani, Spanish
Spanish, Aymara
English
Dutch
Spanish
Spanish
Capital
Buenos Aires
La Paz, Sucre
Brasilia
Santiago
Bogotá
Quito
Stanley
Cayenne
Georgetown
Asunción
Lima
King Edward Point
Paramaribo
Montevideo
Caracas
Pop.
45,195,774
11,673,021
212,559,417
19,116,201
50,882,891
17,643,054
3,480
298,682
786,552
7,132,538
32,971,854
0
586,632
3,473,730
28,435,940
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