Many of us overestimate how much it costs to register a domain name. You might assume that domains are expensive, especially when they’re short, snappy, and with one of those famous endings like “.com” or “.co.uk”.
You could be under the impression that all the best domains have already been taken, anyway — gone, snatched up, like the last doughnut in the office or a Saturday parking space at Lidl.
This isn’t always helped by media coverage of high-profile sales. And for sure, some domains can be very pricey indeed. The most expensive ones fetch the same sort of prices as masterpieces at an art auction.
The reality, however, is that you can easily pick up a fantastic domain for absolute peanuts. And there are still plenty of excellent choices available.
Then, what’s the typical price for a domain name?
That’s difficult to say. The average price of a domain depends on a few factors, be that the extension (TLD), the registrar you choose, and the additional services you opt for when you buy.
While it’s tough to give an average, let’s go out on a limb and say you can expect to pay between £10 to £30 per year for a good proportion. If you look in the right places, though, you’ll be able to find amazing deals on domains.
What’s for sure is that finding the right one can make a huge difference to your online success. So, whether you’d like to start a blog, show off your professional portfolio, or even start an online business, it’s great to know you can do it with hardly any cash in the bank.
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The most expensive domain names ever
Figuring out the exact price of a domain name sale is a bit of a guessing game. Many sales are made with non-disclosure agreements in place, keeping the exact numbers under wraps.
In at first place is the US-based automotive website, cars.com. Widely regarded as the most expensive domain ever publicised, a report from the website itself shows the domain as an asset valued at approximately £666 ($872 million).¹ (This begs the question, though: if other companies were to reveal the value of their domain as an asset, wouldn’t some be worth even more?)
Moving on, number two on the list is business.com. A generic and highly sought-after domain, this digital asset was officially acquired for a staggering £264 ($345m). It’s a good example of a memorable keyword that captures a big audience.
In third place is the self-explanatory carInsurance.com. Sold for the princely sum of £39 ($49.7) million, it all goes to show how important it is to have a website name that people can easily understand and connect to.
And here’s the full list:²
1. Cars.com — £666 million2. Business.com — £264 million 3. CarInsurance.com — £39 million 4. LasVegas.com — £68.75 million5. Insurance.com — £28 million 6. VacationRentals.com — £28 million 7. PrivateJet.com — £24 million 8. Voice.com — £24 million 9. Internet.com — £14 million 10. 360.com — £13 million 11. Insure.com — £13 million 12. Fund.com — £10 million 13. Sex.com (again*) — £11 million 14. Sex.com — £10 million 15.Hotels.com — £9 million 16. Porn.com — £8 million 17. Shoes.com — £7 million 18. Porno.com — £7 million 19. Fb.com — £7 million 20. We.com — £6 million
*Sold for the second time (Insert own joke)
Why are some domain names so expensive?
Domain names can fetch high prices for all sorts of reasons. Just like prime real estate, a premium domain name is an investment. Domains that combine keywords with commercial value, together with popular endings, can sell for eye-watering sums.
A good domain makes it easier for customers to find you, boosting brand recognition and setting the stage for future growth.
Short, catchy, and easy-to-remember names are more valuable for branding and tend to perform better in search engine results. Take domains like “Uber.com”, “Zoom.com” and, of course, “google.com”, for example. These names are easy to remember, relevant to the brand, and roll off the tongue.
Trending topics or industries also tend to increase the demand for specific domains.
With millions of domains already registered, unique and relevant using the traditional suffixes can indeed become more difficult to come by, driving up the cost. Older domain names with established traffic and backlinks also tend to command higher prices.
You’ll notice that all twenty on the list are “.com”. This goes to show the popularity and perceived value of “.com” domains. That’s especially in the United States, where it’s arguably seen as the default domain extension, even above “.us”.
There are upwards of 350 million domain names already out there. With roughly 1 million new domains registered monthly, that number will be over half a billion by 2026.³
Thankfully, new endings (TLDs) are constantly being released. Novel suffixes, like “.blog”, “.shop”, or “.tech”, offer a fresh and creative way to get up and running online — often at more affordable prices than other domains.
According to the Internet Assigned Numbers Authority (IANA) database, there are almost 1600 domain extensions, or “Top-Level Domains” (TLDs) to choose from. That’s a lot of choice! If you invest a little time and effort in research, lots of domain registrars (domain name sellers) run promotions and offer discounts, especially on multi-year registrations.
Great registrars like 123 Reg (that’s us) may even offer additional perks such as free privacy and security features, which can add extra value to your purchase. Comparing prices and taking advantage of these deals, you could save lots.
At 123 Reg, we offer competitive pricing on a wide range of domain extensions, starting from as little as 0.79p for the first year. You can easily browse our selection and find the perfect domain name for your business, all without breaking the bank.
No need to rush into a decision. though — take the time to shop around and explore the different options. Your domain is so important to your branding, after all.
How can I a good domain name?
When choosing a domain name, make it relevant to your brand and consider incorporating keywords that potential visitors might search for. This can boost your website’s visibility.
Think long-term – choose a name that will grow with your business and won’t feel dated in a few years.
For sure, the most popular extensions (gTLDs) tend to be those familiar ones like “.com” and “.org.” But major country code domains (ccTLDs) are also highly recognisable. A “.uk” or “.co.uk” domain can work wonders for British brands.
Certain country extensions have become popular beyond of their geographical location, with “.me” (for Montengro) and “.it” (Italy) finding obvious uses elsewhere.
New TLDs have opened up a whole world of possibilities. With a huge number to choose from, finding a clever combination that reflects your brand can be a game-changer.
Run a yoga studio? Choose “.guru” to show off your expertise. A keen photographer? “.photography” speaks for itself. Own a pizzeria? “.pizza” would be the perfect slice. The possibilities are (nearly) endless.
If these seem all too casual for you, professionally-focused domains like “.solutions”, “.info” and “.company” are a smart way to project professionalism without choosing a conventional TLD.
As ever, the golden rule is to choose a domain name that’s easy to type and remember. For more info on choosing the right domain name, check out our article:
Names that click – How to choose the right domain name
Flipping the script: What’s reverse branding?
The digital age has flipped the script on branding. Instead of thinking up a catchy name and hoping the domain is free, many savvy entrepreneurs now do it backwards. That is: scout for available domain names first, then craft a brand identity around that lucky find.
Why spend hours brainstorming a unique name only to discover it’s already taken? By starting with the domain, you’re guaranteed a digital home base that’s catchy and fits your brand. It also saves you from settling for a less-than-ideal name.
Need proof? Reddit, Instagram, Slack, and Flickr were all born from available domains. This shows that sometimes the best brands come from embracing chance discoveries. So, if you’re stuck on a name, try starting with the domain instead. You might just find the perfect fit.
See also: Domain Names and Trademarks – A Guide for your Online Brand
Wrap Up
It’s easy to find a memorable name with a suffix that fits your brand and helps you stand out online. At 123 Reg, we’ve been helping businesses get online since 2000, with over 1.7 million UK domains registered. We understand the importance of a strong online presence, which is why we offer over 400 affordable domain extensions to choose from.
References:
https://smartbranding.com/unleashing-the-value-cars-coms-domain-as-a-catalyst-for-growth/
https://www.godaddy.com/resources/ae/skills/the-top-25-most-expensive-domain-names/
https://dnib.com/articles/the-domain-name-industry-brief-q3-2023