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The value of a domain

Depending on whom you ask, you will receive a variety of answers that may range from complex calculations of ad revenue to unique visitors from particular geo-locations. Essentially there is no right and wrong answer, the price of a domain that may be worth $10 to one entity, maybe worth $100000 to another.

The essentials are rather simple and logical, mere branding or name recognition can translate into a huge amount of traffic or sales, or it can harm a new brand. The real question is how a domain can and will be used to improve ROI.

We all have seen or read about huge domain sales, that have created millions of dollars in sales, but we also have seen domain speculators fail to monetize their domains. The bottom line is rather obvious, in which the value of a domain may entirely depend on a particular niche and possibilities. The wild card is, however, the most recent action by ICAAN. Will the authorization of new vanity domains with all new top-level extensions be a game changer? Will it increase the value of traditional domains or diminish their value?

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That remains to be seen.

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