If Jeff Bezos had never created Amazon.com Inc., what would be the value of the AMAZON.COM domain name? A few million dollars? If there were no Facebook Inc., what would be the value of FB.COM? How attractive would the GOOGLE.COM domain name be if it were not affiliated with Google Inc.? The value of each of these domain names is likely over a billion dollars solely due to its affiliation with a super-successful company.
But what makes an in-the-raw, unaffiliated domain name valuable? Here are some factors to consider…
There are just 676 two letter dot coms. While demand for such premium domain names is increasing, available supply is rapidly decreasing… resulting in ever-higher prices.
Need, Demand, Desire
These attributes obviously factor into market value.
The CEO of HOMEAWAY.COM, a vacation rental site, acquired the site VACATIONRENTALS.COM for $35 million based on the desire to blunt competition. HOMEAWAY.COM’s CEO admitted the purchase was essentially to capture the domain name.
Here is an example of a need-based domain purchase… Last year Block.One, a new blockchain startup using the new social medium platform “Voice”, recently purchased the domain name VOICE.COM for $30 million in an all-cash transaction.
Perceived value is based upon various methodologies, such as:
ROI & ROR (Return on Investment) (Rate of Return)
58.COM, the Chinese equivalent of America’s MLS, generates more than $1 billion a year in revenue, with nearly 1 million agents who each pay more than $1 million a year to 58.COM in advertising fees. Such a ROR would easily justify a strong 8 or 9 figure value for the 58.COM domain name.
Royalty Rate is a methodology often used to value domain names based upon a specific revenue stream. Take CARS.COM for example…
In a $2.5 billion corporate sale, the accounting firm of Ernst & Young valued the domain name CARS.COM at $872 million utilizing the Royalty Relief Method. Using the Mark-to-Market valuation, CARS.COM would command a very high 8-figure sales price.
Short, brandable dot coms
The Crème de la Crème of ultra-premium domain names are the ultra-short, generic, brandable dot coms such as US.COM. Such domain names are easy to pronounce, spell, read, type and remember.
Rapidly appreciating assets
With right letter combination, highly brandable
VALUE: 6-figure to high 7 figure
BTB.com - $7,900,000
YES.com - $5,540,000
ICE.com – $3,500,000
ETF.com - $3,500,000
FLY.com – $2,890,000
ETH.com – $2,000,000
TAO.com - $1,540,000
EKO.com – $1,500,000
NJS.com - $1,462,000
DXL.com – $1,150,000
GEM.com - $1,000,000+
OFO.com - $1,000,000
QNB.com – $1,000,000
BTC.com – $1,000,000
Control, Prestige, Investment
Don’t be at the mercy of another social site. Control your own destiny. Don’t be at the mercy of Twitter’s quixotic Jack or Facebook’s untrustworthy (IMO) Zuckerberg.
The high-value geo-domain name LasVegas.com sold for $90 million, payable over 35 years. To date, the seller has received approximately $60 million.
CHINA.COM $100,000,000++ valuation
What is the value of the domain name for the most populous country in the world?
Dai Yue is considered the Warren Buffet of the domain industry in China with over $100 million in domain sales to his credit. When asked his opinion on the value of the CHINA.COM domain name, he replied “I'd say at least $100 million or more. This should be assessed in terms of China's GDP, population, and the likely market value.” He continued, “China is the largest Internet market with 1 billion users and a 1.4 billion population… “ It is my understanding that CHINA.COM is either owned by or affiliated with the government. If so, I don’t think the government would sell CHINA.COM for even $500 million or higher. This domain is seemingly off the market forever.
BTW, it is worthwhile perusing Dai Yue’s two online platforms: 2L.COM and YUMING.COM. Additionally, Dai Yue owns more LL.coms (16) than anyone else in the world!
All the previous information is to set the stage for why US.COM is the most valuable domain name in the world…
US.COM is the shortest online representation of the United States. The US.COM domain name checks all the marks for the most valuable domain name in the world.
US.COM represents the strongest, most free, hope-of-the-world country on earth. US.COM is the entryway to the land of opportunity. It represents the desires of billions of people.
US.COM is the most prestigious online address. Period. This short, memorable dot com could become the most well-known domain in the world.
Relative value? If one city (LasVegas.com) can command a $90 million price, just imagine the opportunity for the domain name representing the world’s greatest country.
$100 million or even $200 million, seems a woefully low price for such a domain name. In the right hands, US.COM could be a $500 million domain name.