Are Domain Name Values Going Down?

Are domain name values going down in the weakening economy?  Intuitively, one would think this might be the case with so many announcements of dismal earnings, failing corporations, government bailouts, etc.  After all, when I saw that NewYorkers.com went for only $5,100 and MegaVitamins.com went for only $675 on Sedo last week, I thought — “Is the bloom off the rose?” 

After doing a little research I’m happy to say that the premium market for high end domains still looks good, but one might question if the value of less than premium domains, ones that might typically be purchased for less than $10,000, might be slipping a bit.  Why? Because so many of these domains are purchased by small businesses and individuals. 

But Sedo scored big last week on some really high-end domains that gives us hope and encouragement that the domain name marketplace is still doing well overall.  Consider the following sales and see if you agree with me. 

  • LowFares.com sold for $365,000 on Sedo
  • Banners.com sold for $360,000 on Sedo
  • Pisos.net (Spanish for “Apartments”), sold for $187,500 on Sedo
  • Alice.com went for $250,000 in a private sale

Now consider the following to see if you agree with me on some disappointing sales for one-word domains lately:

  • Sleeper.com sold for $10,100 on NameJet.com
  • Sisterhood.com sold for $10,000 on Moniker
  • NowHired.com went for $2,588
  • WorkingLife.com sold for $2,000
  • GolfMerchandise.com sold for $3,626

I was astounded that Sleeper.com didn’t go for higher.  There is immense revenue potential from all five of these domains, they the last 3 on the list went for $3,626 or less.  This gives me a lot of concern over the value of 2-word domains with commercial appeal that are often picked up by entrepreneurs and small business owners.  Take for example, LawAdvice.com, currently up for auction on Sedo with only 2 bids and resting at $2,050 with 4 days left to go on a 7-day auction.  This domain will be a good barometer to check out the value of highly commerical 2-word domains. 

If there’s a lawyer in the house, listen to me.  You’ve got to jump on this domain — we’re talking about a highly searched phrase in “law advice.”  Nope, its not my domain name and I don’t know the owner.  But watching this domain should give us a good indication as to the strenght of the domain name market during this economic downturn.