Domain Name Asset

Are your domain names an asset or an expense? To clarify, this not tax advice, or a guarantee that your domain names will increase in value, strictly information on the value of domain names.

The mainstream population and the majority of small business owners do not know the domain name aftermarket even exists.

Definitions;

• Asset: An item of value owned
• Expense: An expenditure of money; a cost

When you spend money on traditional advertising and marketing, the cost is definitely an expense. You will never see that money again.

If you invest in the purchase of a domain name there is the potential for the name to increase in value. An asset that you own and is marketable.

As with any commodity the higher the demand for your domain name, the higher the value. A good generic domain name will have a higher demand than your business name.

As an example; OrlandoRealEstate.com will have a higher demand than the business name, RE/MAX 200 Realty.

OrlandoRealEstate.com is a generic term and could used by any of the thousands of real estate companies in Orlando. RE/MAX 200 Realty is company specific and has value only to them.

Descriptive Domain Name Sales in 2011

• RunningShoes.com $700,000
• Puzzle.com $500,000
• GamesForGirls.com $500,000
• DataCenter.com $352,500
• DownloadMusic.com $242,500
• Stockbrokers.com $185,000
• BlueJeans.com $150,000
• OnlineDegree.com $120,000
• CriminalLawyer.com $115,000
• DoorHardware.com $85,000

These domain names are an example of the top domain name sales this year provided by DN Journal

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