What is the value of a domain name?

In an objective and practical way, it is known that a domain name get value when the traffic of the site having this name is higher than that of any other site with a similar contents, and with equal SEO action. I know some examples of names which were given up by their holder by disinterest, and which could have been resold a handsome price, but which was recovered by speculators.

Estimating the value of a name

In the absence of mean to compare two websites, certain criteria can indicate us if a domain name has value in oneself or not. Above all, a domain has value when the name comes naturally to mind and when it is easy to retain.
Criteria of value of a name are as follows:

In general, domains whose name is composed of several words have little value in themselves, unless the combination is a frequent request. For example, mp3audiobooks.com for which a company paid an enormous amount, because that corresponded exactly to its activity or AsSeenOnTV.com which corresponds to a usual sentence.

Examples of expensive domains

A domain name corresponding to a widely used commercial product can be resold at a vertiginous price.

Domain Value $ Year New owner
Altavista.com
3 300 000
1999  
Ancestry.com
1.600.000
2012 Permira
Answer.com
550 000
November 2011 Undisclosed. Was parked.
AsSeenOnTv.com
5 100 000
January 18, 2000  
Autos.com
2 200 000
1999  
Beer.com
7 000 000
   
Bingo.com
200 000
   
Blue.com
500 000
2006  
Brazil.com
500 000
2009  
Business.com
7 400 000
1999  
Call.com
1 100 000
2009  
Candy.com
3 000 000
June 2009 G&J Holdings
Casino.com
5 500 000
2003  
Cinema.com
700 000
February 1, 2000  
Computer.com
500 000
   
Creditcards.com
2 750 000
2004  
Cricket.com
1 000 000
2009  
Diamond.com
7 500 000
  A diamond seller
Editor.com
225 000
2009  
Feedback.com
1 200 000
2000  
Fish.com
1 020 000
2005  
Fly.com
1 500 000
2000  
Fund.com
10 000 000
2008  
Forsalebyowner.com
835 000
   
iCloud.com
4 500 000
2011 Apple
Internet.com
100 000
   
iphone.com
1 000 000
2007  
Korea.com
5 000 000
2007  
Loans.com
3 350 000
1999  
Mp3audiobook.com
8 000 000
February 16, 2000 Inc. of Santa Rosa
Netscape.com
4 500 000
1999 AOL
Pizza.com
2 600 000
   
Porn.com
9 500 000
2007
 
Rock.com
1 000 000
2005  
Russia.com
1 500 000
11/2009 Anonymous.
Seniors.com
1 800 000
2007  
Sex.com
12 000 000
2006  
Shop.com
3 500 000
2005  
Slots.com
5 500 000
05/2010 BodoBrand, sold by Moniker.com
Toys.com
5 100 000
2009 Toy'R'US.
University.com
530 000
   
Vip.com
1 400 000
2005  
Vodka.com
3 000 000
December 4, 2006 Standard Russian Co, Russian vodka producer.
Wallstreet.com
1 030 000
1999  
Wine.com
2 900 000
1999  
Wordwideweb.com
3 500 000
1996  

Sex.com would have been sold for 12 million dollars, after stolen and then being recovered, the usurper being fled in Mexico before being extradited (Kremen/Cohen case ). But in this case, the site had already an important traffic.
Re-sold by Escom to Clover Holdings Ltd for 13 million dollars in October 2010.

Ancestry.com is a site dedicated to genealogy, apparently a lucrative sector. In this case it is the site and its audience which make the value rather than the sole domain.

Netscape.com. 4,2 billion dollars in AOL in 1999, for the site especially but the product became open source under the Mozilla name, it remains of Netscape only the logo and the domain name.

Value of other TLDs

Domain
Value $ or €
Year New owner
Address.net
20 000 $
   
American.info
23 530 $
   
Auctions.net
23 000 $
   
Auto.fr
100 000 €
2008  
Blackjack.org
298 000 $
October 31, 2007 PokerCompany.com
Engineering.org
198 000 $
   
FreeCreditReport.co.uk
300 000 $
   
Games.eu
67 500 €
2009  
News.se
55 800 $
February 2010  
Poker.org
1 000 000 $
  PokerCompany.com
Textbooks.co
12 000 $
November 2011  
Wines.net
13000 $
   

We know that this amount was exceeded for a eu domain, but the names were not disclosed.
A certain value attributed to the co extension which is the extension of country of Colombia, but used as a replacement for the com.

Protecting a domain name

Check that the status of the domain is "registrar lock". A domain could be subtilized by transfer to another owner without your assent and in a country where the thief can't be sued.
Locking is not possible for EU and most ggTLD.

Cyberquatting

This term designates the fact of deposit the domain name of a mark known in an TLD or ccTLD, that was not done by the company, in the hope that the company (or a competitor) will offer you to repurchase it a handsome price. The principle is not entirely contestable as long as one sticks to a reasonable price, such as 10.000 to 20000 dollars which are only trifles for a large company.
However cybersquatting gives place to excesses. To oblige the company to repurchase the domain, one makes point the domain on the site of a competitor for example! It is also reprehensible to ask an exorbitant sum a company under pretext which the name of mark is worth well that, since it is the holder of the mark which made it its value!

These practices lead in courts in European countries, but they sometimes made the fortune of cybersquatters in USA.
Between 1999 and 2006, the OPMI (World Organization of the Intelectual Property) treated more than 20000 complaints for cybersquatting of domain names in ten different languages.

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