Why do some domain names cost thousands?

Search for a name at any registrar and one of two things happens. Either it is available for an ordinary yearly fee, or it comes back marked premium at a price many times higher. The same .com, the same registry, the same renewal. The difference looks arbitrary until you see what is actually being sold.

Registering a name and buying one are different things

When a name has never been registered, or has lapsed and been released, anyone can register it for the registrar's normal fee. That fee pays for the registration. It says nothing about the name.

When a name is already registered, the only way to get it is to buy it from whoever holds it. The price is then set the way prices are set for anything second hand: by the owner, by what comparable names have sold for, and by how much a buyer wants this particular one. That is the aftermarket, and many of the .com names marked premium at a registrar are aftermarket listings shown in the same search box.

Some newer extensions work differently: the registry itself charges more for certain names, sometimes at every renewal as well. For a .com bought on the aftermarket, the purchase price is paid once, and after that it renews at the ordinary yearly fee like any other .com.

What makes one name worth more than another

There is no formula, but the same few qualities come up in almost every valuation:

• Length. Shorter names are easier to say, type, fit on a label and remember, and there are far fewer of them.
• Sound. A name people can spell after hearing it once is worth more than one they have to have spelled for them.
• The extension. For most businesses selling to a general audience, .com is still the default people type. A name in .com and the same word in another extension are different assets.
• Meaning, or freedom from it. A real word that names a category carries meaning on day one. A coined word with no meaning yet can be shaped into a brand and is often easier to protect.
• Commercial reach. A name that suits many kinds of business has more possible buyers than one that suits a single niche.
• History. A clean name, not tied to spam or a past dispute, is worth more than one with baggage.

These are judgements, not measurements, which is why two sellers can price similar names very differently. Comparable sales help, but no two names are the same.

What the price is really paying for

The registration is the cheap part. What a premium price buys is the time and the compromises you skip: no extra word bolted onto the front of the brand, no missing letters, no customers sending email to a company with a similar address, no rebrand in two years when the compromise starts to hurt. For a company that will spend years building one name, that is often the better use of money. For a side project, it usually is not.

A useful question is not whether a name is worth its price in general, but what not owning it would cost you. How much should a startup spend on a domain name? works through that question by stage.

Is the price negotiable?

Often. A fixed price listed for immediate purchase usually means the seller has decided and would rather sell today than negotiate. Make an offer and price on request both invite a conversation. How to make an offer on a domain name covers what to say and when to stop.

What the price does not cover

• The yearly renewal, which you pay from then on.
• Trademark clearance. Owning the domain does not give you the right to trade under the name in every field. Check, and take advice if anything looks close.
• Escrow, depending on who pays its fee. Agree that before the price is final.

On Webba

Every name on Webba is a .com, shown with its own visual identity, and most are price on request: ask, and a person answers. Every sale goes through Escrow.com, the escrow fee is paid by the seller on Webba's current terms, and the transfer normally completes in one to five days. Every name sold is covered by a 100% Money Back Guarantee: you get the domain, or your money back.

Browse every name A to Z or start with the short .com names, five letters or fewer.

What is a brandable domain name? explains which names command these prices and why.

Short .com namesEvery .com on Webba with five letters or fewer.