5 ms·
How much should I pay for a domain?
I am negotiating a domain name for my new startup. The seller is asking for $2000/month plus 5% equity for leasing the domain with a buyout option of $500k. All the money put towards the lease will go towards the buyout. ALl This is a one word dictionary domain. It will REALLY help out the startup as the word clearly describes the business.
I definitely plan on negotiating. I wanted to get thoughts and feedback on what you have seen in the past.
- dozzie 9y agoObligatory pg article link: http://www.paulgraham.com/name.html http://www.paulgraham.com/name.html
- ryanx435 9y agoyou can register a domain for ~$10, depending on which registry you use. anything more than that is a strict value call on your end. Is getting the exact domain that you want worth the extra thousands and thousands of dollars? also, it strikes me as odd that you are calling the other person a "seller" when they are offering you a lease on the domain. are you aware that "lease" is just another word for "rent"? honestly this sounds like a terrible idea that you haven't fully thought through.
- e9 9y agoThink of it as a full-time marketing employee. Would you give your best marketing person 5%? Probably not, but $2000/month is probably ok for a good domain.
- eberkund 9y agoHow far along is your startup?
- mnmstorch 9y agoPre-stage. Not even the design has started yet.
- stephenr 9y agoThat you are even considering this is proof that vc funding is fucking crazy. Half a million dollars, for a domain name?
- rocmcd 9y agoIt's hard to offer guidance around pricing without knowing anything about your company, or how much it is/could be worth. Unless you're the next Uber, spending even $2000/month sounds _insane_ to me. My opinion is that you should save the money, choose a different name (or variation of the name), and put the $2k/month towards something that will provide real value to your startup. There's a ton of one dictionary word domains available if you have a little creativity, and, since you're new, you're presumably not really tied to any one name.
- 123e1daAdfafsdf 9y agoCan you measure or prove the impact the domain would have on the business? If not, you'll end up spending a great deal of money on something you don't know if it matters or not. IMO, domains are growing less and less important as more people find sites by clicking on links, not by typing in the domain name. So many successful companies start with getMyApp.com instead of MyApp.com.
- grizzles 9y agoYou haven't given much info. Do you know much about internet traffic? You might be overestimating the organic reach of your domain. That being said, it's not too bad a deal, you are only out $2K if you have a taste and the domain doesn't deliver. BUT cut out the equity piece. These type of shareholders are at best pure dead weight and at worst a pain in the ass. One other note, even with a contract, there are ways the seller can screw you (eg. changing their bank acct details & going incommunicado) so if you are leasing make sure the domain is controlled by a neutral 3rd party for the lease term so you are protected if someone with a better offer comes along.
- mnmstorch 9y agoYeah, that's what I am thinking as well. Having the domain be monitored by a third party is an excellent idea. I know some domains go for millions. The traffic on the domain right not is negligible since its a holding page.