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FAQ  FREQUENTLY ASKING QUESTIONS

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Why Do You Need A Domain Name ? 

Domain Name Buyers Guide ? 

Glossary of Internet Terms ? 
   
 Selling Domain Names   What do you have to know ! 
 
1.I own domain name abcd.com -- how much is it worth?
2. Please tell me how much you think "abcd.com" is worth
3. I heard that an offer of $50,000 was refused for Television.com
4.What is the highest price a domain name has sold for?
5.What is the highest price a domain name is being offered for?
6.Are domain names going to make me rich?
7.What is your view on the current state of the domain name market?
8.Which domain broker is best?
9.How can I choose which broker to use?
10.I had a good experience with "Broker X
11.I had a bad experience with "Broker Y".
12..Somebody wants to buy my domain name, and I want to sell it
13.I want to sell my domain name privately, but I don't want...
14.I sold a domain name.
15. How can I increase my chances of selling a domain name?
16.What do you mean, "expiry date"?
17.I've been trying to sell my domain name for X months.....
18.Do you have a sample contract I could use to sell my names?
 
   

1.

I own domain name abcd.com -- how much is it worth? 
 The harsh reality is that if you are not already aware of a domain name's worth, it is probably not worth as much as you would like. In other words, if nobody has beaten a path to your door to buy it, you probably won't be able to give up your job after a single sale. Domain names have sold for anything between $200 and $150,000+. The price you can get depends on how quickly you want to sell, as well as how much interest you can generate in the name. Current domain names are priced at anything up to $7,000,000! It is inconceivable to imagine any company spending that kind of money on a single domain name. Better to go for realism rather than madness. I suggest that you price your domain name between $500 and $10,000 unless there is an exceptional case for pricing it higher. Don't waste your time selling a domain name for much less than $500, as the effort will not justify the reward. 
   

2.

Please tell me how much you think "abcd.com" is worth  
 In the past, I have answered a very large number of such requests. Regrettably, I no longer have the time to do so, and such requests will be ignored. Instead, here are a few tips to get you started:- 
 
  • See what price similar names are being offered at by looking at the lists on the various broker sites.
  • Price realistically -- although it is possible to make a real fortune, as the recent case of "business.com" ($150,000) shows, this is very much the exception rather than the rule.
  • Price to sell -- your pricing scheme should be very different if you are trying to sell a name in three weeks, three months or three years.
 
   

3.

I heard that an offer of $50,000 was refused for Television.com. That's a lot of money. Is it true?  
 Yes it is. And yes, it is. The offer was made by CNET, the owner refused thinking he would get more... You can find more details of the domain name, and why the owner refused to sell it, at television.com 
   

4.

What is the highest price a domain name has sold for? 
 Two domain names have sold recently for very large sums of money. internet.com was sold for a sum rumoured to be around the $100,000 mark. And topping even that princely sum, a couple of weeks later business.com was sold for a staggering $7.000,000. 
   

5.

What is the highest price a domain name is being offered for?  
 The asking price for some domain names has been reaching out of this world proportions, although with no sign of corresponding sales. Some names have been listed for sale by their hopeful owners for several million dollars! Greed is a powerful motivator, but one that will not help the owners when they have to renew their names again... and again... and again... with InterNIC when no buyers appear! 
   

6.

Are domain names going to make me rich?  
 No. These high-price sales are the tip of a very large iceberg. Most transactions take place somewhere in the depths of the 'berg, well below the water line. You may make some money if you pick a good domain name, but you are not going to get rich by selling domain names. There's more potential in leveraging domain names into another business, like starting a mailing service such as "MailBank" or "iName", or becoming a domain name broker. Some people may be able to make good money from selling domain names, but don't approach them as a get-rich-quick scheme; that kind of luck only happens to a very few people. 
   

7.

What is your view on the current state of the domain name market?  
 Difficult to tell. On the one hand, there have been a number of high-profile sales recently. However, a survey carried out by Internet Gold-Rush in late April found that 11 domain brokers had clocked up a total of only $287,000 in sales, corresponding to the sale of 68 names. It would appear that there are many more sales being transacted on a 1-2-1 basis, but it is difficult to get precise figures for such sales 
   

8.

Which domain broker is best?  
 Ah, you're not going to draw me on that one. Their services are broadly similar, although it is clear that some brokers are larger than others, BestDomains for instance. Some brokers provide extra services such as virtual domain name hosting, e-mail addresses, even license plates of your domain name [DomainMart]. 
   

9.

How can I choose which broker to use?  
 Check out the cost of doing business with each broker. Find out if the broker has a track record of sales completions. The domain name market is still very new, and many of the brokers are less than a year old. There is a lot of information on the different domain name brokers on this site. You will also want to visit each site to compare features. 
 I would suggest that you pay attention to the following:- 
 
  • Their commission rate. This seems to vary quite widely between brokers.
  • Does the broker charge buyers for placing bids? This could hinder their business.
  • Does the broker have a track record of sales? Since the business is relatively new, most brokers have sold a couple of names, at best. Don't be afraid to ask questions.
  • How many names are listed on the site? There are two conflicting factors here: your name will stand out more prominently if the site only lists a few names; on the other hand, you may prefer to go with the perceived "security" of a larger site.
  • How easy will it be for buyers to navigate around the site to find your name? If the site is badly laid out or difficult to navigate, buyers are likely to go elsewhere. After all, there are plenty of choices.
  • How much are the domain names that are already listed at the site? Are there some in your prospective price range, or are they all above or below that range. Does the site quote prices for domain names, or only "make offers"?
  • Remember, you can often do business with more than one broker. Increase your exposure as much as possible. H) Finally, don't be greedy. Even a cursory glance at the brokerage sites will show you that thousands of domain names are on sale. Don't price yourself out of the market.
 
   

10.

I had a good experience with "Broker X".  
 Please tell me about it. The domain name market is still very young, and any criteria for distinguishing the various brokers would be very useful. 
   

11.

II had a bad experience with "Broker Y".  
 Please give me as many details as you can. I will try and get to the bottom of the incident, and if necessary post an advisory on this site. Please note that I will not fight legal or other battles on your behalf, but simply collect information. 
   

12.

Somebody wants to buy my domain name, and I want to sell it, but I am worried about them cheating me. What can I do? 
 Although I have not used their services, I know that Multimedia Realty offers a $250 escrow service whereby they take care of all the payment and domain name exchange details. 
   

13.

I want to sell my domain name privately, but I don't want the hassle of changing my registration at InterNIC and making sure the money gets to me. What can I do?  
 Multimedia Realty offers a $250 escrow service. They will collect the money from the buyer, hold it until the domain name has been transferred, and then release it to you. This service may be worth it if you feel you can get quite a high price for a domain name. The commission you would pay most brokers is much higher than $250. 
   

14.

I sold a domain name.  
 Absolutely, though it may cost quite a lot. Charges range from $10++ per month to point several domain names at one site. There are several alternatives here: if you have a site with an IP address, you can just point a number of domain names at that IP address; if your site is hosted in a subdirectory of a web hosting service, you'll need to choose a registrar that offers website forwarding. 
   

15.

How can I increase my chances of selling a domain name? 
 Here are some things you can do to improve your chance of making a sale:- 
 
  • Read the "5 Golden Rules" of domain name selection.
  • Some domain name brokers accept multiple listing of domain names i.e. you can post the same domain name with several brokers. Current information about domain name brokers can be found here. Post your sales notice with as many brokers as you can. The increased coverage can only prove beneficial.
  • Quantity is important. This is not so relevant if you can only afford one or two domain names. If you are thinking of buying a number of domain names, try and build up a small portfolio of names. Don't choose all your names from the same "target market", such as travel or entertainment. Instead try and be as diverse as possible.
  • Consider an example:

    Person A buys one domain name and puts it on the market for $2,000.

    Person B buys 19 domain names and puts them on the market for $2,000 each.

    Assuming that person A and person B are equally adept at choosing domain names, then person B has 19 times as many chances to sell a name as person A. Person A can make a tidy profit by selling the one domain name. However, person B is guaranteed to make back the outlay all 19 names with the very first sale.

    NOTE: Naturally, there is more exposure to risk when purchasing more domain names. Remember that the value of a domain name tends towards $0 as the expiry date of the contract approaches.

  • Finally, if you have registered a once-in-a lifetime domain name, try approaching a company in your prospective market directly. After all, if the domain name really is that good, they will be glad to have the chance to buy it off you.
 
   

16.

What do you mean, "expiry date"?  
 Remember that a domain name is yours to do what you like with, but only for a limited period of time. During that time period you can use it, buy it, sell it or do whatever you like with it. At the end of the time period you have to pay again.Current pricing is $100 for the first two years of ownership [payable in advance] plus $50 per year after the two years are up. 
   

17.

I've been trying to sell my domain name for X months, and there has been no interest at all. What can I do?  
 Keep waiting. The domain name market is growing from a base of zero only a few months ago. Currently, by far the most active aspect of the market is the registration of new names. There are thousands of domain names for sale, and only a few buyers. As more companies are coming onto the Internet every day, the demand for good domain names can only increase. 
   

18.

Do you have a sample contract I could use to sell my names?  
 Not yet, this is something I am working on. Please be patient, and come back to this site often... 
   
   
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