How Much Is A Domain Really Worth?

by Traverse Legal, reviewed by Enrico Schaefer - March 6, 2008 - Uncategorized

This is a difficult question to answer.  You can compare what you own to other similar domains that have sold.  However, as Michael Gilmour correctly states, “the only way to really find out the true value of a domain is to sell it.”  This should not come as a huge surprise since one of the best ways to value a house is to look at comparable sales in the area.  Unfortunately, a house is brick-and-mortar, with one location, one view, one neighborhood, etc.  You know what you are getting when you buy a house.  A domain, on the other hand, can have intrinsic value, but it is hard to tell what truly can become of it without seeing the website and product/service offerings that will be housed on it.  It is more difficult to know what you are getting, or what you may already have, in a domain.

Regardless, a domain is an investment property that is worth protecting.  We all know the investment does not come at the time of purchase, since the price of a domain is miniscule in comparison.  The investment into the domain comes in protecting it.  If as the domain name registrant, you are subjected to a threat letter, a UDRP proceeding, or trademark infringement or ACPA lawsuit, it makes sense to protect a domain that may be worth more than your house at some point in time.  Just like you call a realtor when it comes time to buy or sell your house, you should call a domain name attorney to help you with your domain name transactions.

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Enrico Schaefer

As a founding partner of Traverse Legal, PLC, he has more than thirty years of experience as an attorney for both established companies and emerging start-ups. His extensive experience includes navigating technology law matters and complex litigation throughout the United States.

Years of experience: 35+ years
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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney Enrico Schaefer, who has more than 20 years of legal experience as a practicing Business, IP, and Technology Law litigation attorney.