"Realistically a domain name can be worth any amount but most domain names sell for around $5,000 to $20,000. Premium domains, category killers and short domains however can easily command $100,000 or millions depending on a wide number of reasons. But let’s not talk about the value of individual domains per se but how a domain name compares to the cost and value of traditional media. Let’s put a $10,000 domain in perspective to traditional media."
"Billboard Advertising is some of the most expensive advertising around. In New York City, for example, a rotary bulletin can cost you anywhere from $35,000 to over $600,000 a WEEK according to Clear Channel’s online rate card."
"You know that advertising billboard which is essentially carried around on the back of a truck and drives around all day? $20,000 a month if you want to advertise in the Atlanta Market (although fuel cost is included)."
"Even radio ads can cost around $200 average per spot and you need at least a handful a day to make any dent in attracting business...total monthly estimated cost $30,000 or more.
"Now the question is what do you own after the 30 day period for the traditional media sources above? Nothing! If you spend $10,000 on a domain name your only future expenses are the $8 a year in registration fees - not even $8 a month … actually less than $1 a month."
"Of course there are other expenses such as building a website and SEO but all of these expenses are costs which go directly to building value to something you own – not airtime or billboard space you are leasing!"
"There are also intangible factors like authority which category defining domain names have that traditional media can never compare to. So, the real question is not how much a domain name costs but how much value the right domain name can bring to your business."