ADomain names are one of the most important parts of any business. It is how people find you. Whether the use is primarily for email, a company website, or part of a marketing campaign anyone starting a business must secure a domain name.
The difference between a domain name and other marketing expenses however is you are acquiring a presence which help future customers find you online.
Owning a premium domain has become expensive with the average price of a domain name hovering around anywhere between $5,000 and $20,000 however, how expensive is this?
If you compare the price of almost anything compared to its original cost we could not classify everything as expensive. A $3 bottled water costs how much to produce? Or a $300 pair of designer sunglasses which probably cost less than a mocha to manufacture?
The argument about why domains command so much value simply comes from a lack of understanding about the value of the underlying asset, you online address. If your grandmother purchased a piece of oceanfront property 25 years ago for $100,000 and today it’s worth $1,000,000, would you question the value of the property? No, because real estate has a tangible, acceptable value in our heads. Domain names are property and although many of them are owned by investors who saw the future value of these assets and simply monetize them by serving ads (instead of adding value) by building a website.