Why people choose an expensive domain name when they can get one for free with their hosting?

Last Updated On: November 1, 2019

The question at hand is: Why choose an expensive domain name when you can get one for free? Yes, everyone likes a bargain and low running costs will help a business stay profitable, but for it to be on the spot make sure to differentiate an expensive domain from a valuable domain”.

Through the eyes of domain registrars, all domains are equal, but no one guarantees the domain will be valuable. A valuable domain name will make a difference for your website.

Why choose to buy an expensive domain name instead of hand registering a domain name directly from a registrar website?

The main reason is that the expensive “after-market domains” were registered by domain traders with years of experience in the business.

These industry experts have done their research into a specific business or industry niche which leads to domain registration. Because they invested time and effort into making the domain better and more valuable through proper, informed domain registration, they intend to make a profit through a sale, hence the domain sale price is much higher than the registration price.

We have to understand that corporations and companies can afford big budgets for their online presence, and will employ domain broker companies for consulting and acquiring valuable domains. They know a good domain will make a difference in search rankings and traffic.

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domain name sale or auction through domain marketplace website

Expensive and strong marketing strategies, as well as branding, is the main reason why such corporations invest in these domains as they are a perfect match for their specific needs.

The value of a single domain name is very subjective. It only requires one motivated buyer who feels the domain name is worth it. You probably do not see too many six-figure domain name sales because this kind of high-value transactions is usually done privately through a domain broker.

Recently, in June 2019 the domain name “voice .COM” sold for $30 million, and it has made a new milestone for 2019 domain sales or transfers in terms of value.

How much should I invest when looking for a domain name?

Small value projects and personal websites cannot afford such budgets, though they will be competing with corporate websites in their business niche.

Let’s get one thing straight if you need a domain name for a low-value, school or personal website that is not aimed at making a profit, then, by all means, get a free domain name and be prepared to let go of the intellectual property you build with your project.

Knowing that the average domain registration price is around 10 to 25 dollars, any small business worth its salt can pay a bit more, in the range of 50 to 500 dollars, to get a better domain name which would be a sound investment.

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The “expensive domains” are usually chosen as relatively short, memorable and original and as such they hold benefit:

  • Long domain names main caveat is typing error where users go to other websites by mistake.
  • A two-word domain name is much easier for your website visitors to remember than a long-tail three-word domain.
  • An original and creative domain name can be a huge benefit for a small business branding.

This kind of investment is not too heavy on a budget even for a very small business, but it can be a game-changer and weight heavily on the website’s success.

Conclusion

Lastly, note some domains did not hold domain value until the software platform behind them made them into instantly recognizable brands, for example, Google, Facebook, Instagram … etc.

domain name can hold significant monetary value

Now, imagine if Google or Facebook would drop their domain names, how much these would be worth? Their value comes from billions of existing users and visitors that make up their traffic, branding, and domain authority.

I would conclude with the “cars .COM” domain which was sold for the amazing amount of $870 million as I am sure both the buyer and seller concluded this deal with a smile on their faces because each of them knew the exact reasons why.