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What do I pay for a domain name?

The valuation of a domain name is not always immediately clear. Often, the cost of initial registration is used as a starting point when searching for a domain name. However, many domain names are already taken, so you quickly end up with a registered domain name that is for sale on, for example, an (international) marketplace or via an auction. The price is likely to be higher than expected. The trade in domain names has become a market of supply and demand.

Value of a domain name

An existing domain name always represents a certain value. From a few Euros to many millions. It's like the second-hand car market. A simple second-hand car costs hardly anything, while a sought-after classic car will cost a considerable amount. Or think of an A-location retail store or office compared to a remote area. It's the same with domain names, the 'prettier' the name, the more expensive it is. A well-fitting name is always worth the investment.


Valuation

Ultimately, the value depends on many factors. Here are some that you can assume will significantly increase the value (and thus the purchase price):

  • Is it a short name or abbreviation?
  • Is the name easy to remember?
  • Does the name fit well with a (temporary) action or product?
  • How long has the name existed?
  • Has the name ever been associated with a website?


The factors mentioned determine the value, but they are not definitive. Ultimately, it often comes down to good negotiation and a price that both the buyer and seller feel good about.

Download our leaflet on valuing a domain name here.


If you want to know what a domain name is worth, use our valuation services: