What’s the Value of a Domain Name?

At the recent Webmaster World PubCon, a domain name auction was held. In addition to the auctioneer and a room full of prospective buyers, bids were also taken over the internet and  streamed live by WebmasterRadio.

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I was astounded at that unappealing names with little or no PageRank or backlinks were selling like hotcakes for hundreds to thousands of dollars. When I saw other URLs with names that seemed more marketable go for $40,000 – $50,000, I became intrigued. See the list of domains and their selling prices at Domain Name News.

Whether you’re a seller or a buyer, how do you decide what a domain name is worth? I’ve never really had a clue. For an understandable, comprehensive treatment on this topic see How to Value a Domain Name by Stewart Engelman of DNI Services, a domain name reseller.

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