How much do domains cost? - Explained

How much do domains cost? - Explained

Domaining

Discover the factors that influence the cost of premium traditional domains and NFT domains, and learn how they compare in value.


Table of contents

Introduction

When buying a domain, one of the first questions that come to mind is, "How much does it cost?" The answer, as you might expect, is that it depends. Domain prices vary widely depending on several factors, including whether you're buying a traditional domain or an NFT domain and whether the domain is considered a "premium" domain.

In this article, we'll look at the costs associated with buying traditional and NFT domains and explore some examples of the highest sales in each market.

Traditional Domains

When it comes to traditional premium domains, one thing to keep in mind is that they're generally sold on a first-come, first-served basis. The most sought-after traditional domains are often considered "premium" domains and can command high prices. For example, "insure.com" was sold for $16 million, "vacationrentals.com" for $35 million, and "privatejet.com" for $30.18 million.

The length of the domain, the inclusion of keywords, and the age of the domain can also play a role in determining its value.

Factors to keep in mind before deciding the price of traditional premium domains:

  • The domain length: Shorter domains are more valuable than longer ones.
  • The domain's relevance: Domains closely related to the product or service offered are more valuable than generic ones.
  • The extensions of the domain: Domains with extensions such as .com or .net are generally considered more valuable than others.
  • The age of the domain: Domains that have been around for a longer time tend to be more valuable than newer ones.
  • The number of backlinks: Domains with many backlinks tend to be more valuable than those with few.
  • The bendability: Domains that are easy to remember and can be easily turned into a brand are more valuable.
  • Popularity: Domains that have high search volume and get a lot of traffic to tend to be more valuable.
  • The competition: Domains that have a lot of competition tend to be less valuable.

NFT Domains

NFT domains operate differently from traditional domains in several ways, most notably in their uniqueness and rarity. The most sought-after NFT domains are considered "premium." They can command even higher prices than traditional domains. "crypto.eth" was sold for $2 million, "art.crypto" for $6 million, "meme.eth" for $2.5 million. Factors that affect the value of an NFT domain include its uniqueness, rarity, and market demand.

It is a digital collectible and a one-of-a-kind item; unlike traditional domain names that can be replicated, NFT domains are unique and not replaceable.

Factors to keep in mind before deciding the price of NFT Domains:

  • Unique Name: NFT domains with unique and catchy names are more valuable than generic ones.
  • TLDs: NFT domains with popular TLDs like .web3, .metaverse tend to be more valuable than others.
  • Brandability: NFT domains easily remembered and easily turned into a brand are more valuable.
  • Rarity: The rarity of the domain name, its uniqueness, and the demand for it.
  • Popularity: NFT domains that have high search volume and get a lot of traffic to tend to be more valuable.
  • Utility: NFT domains that have utility, for example, a .vr domain that can be used for virtual reality content, tend to be more valuable
  • Collectability: NFT domains that are collectible, like a domain name that represents a celebrity or a famous brand, are more valuable

Traditional Domains vs. NFT Domains

While traditional domains have been around for decades, NFT domains are a newer and much more valuable development. Traditional domains are generally more affordable, but they also lack the uniqueness and rarity of NFT domains. Traditional domains are controlled by centralized registrars and registries, whereas NFT domains are controlled by decentralized blockchain technology. Many industry experts predict that NFT domains will become the future of domain names, and we are seeing a shift toward them.

Resources

In this article, we've discussed the different factors to keep in mind when determining the price of traditional premium domains and NFT domains. To further expand your knowledge on the topic, we recommend checking out the following resources:

  1. "How to Buy NFT Domains: A Step-by-Step Guide" - This article provides an in-depth look at buying an NFT domain on Quik.com, including information on minting, bidding, and finalizing the purchase.
  2. "What are NFT Domains used for? Explained" - This article delves into how NFT domains can be used, including as personal websites and collectible items.
  3. "How to Sell NFT Domains: A Step-by-Step Guide" - This article walks through the process of selling an NFT domain on Quik.com, including details on listing options, pricing, and finalizing the sale.
  4. "What are Top-Level Domains (TLDs)" - This article provides an overview of top-level domains, including the differences between traditional TLDs and NFT TLDs and the benefits of each.
  5. "How to Buy Expiring Domains" - This article covers the process of buying expiring traditional domains, including an explanation of the different methods and tips for finding the best deals.