domain purchase - highish amount

[ellie]

I have this domain that I really want, I have something very close, but I think most people will automatically type in the name that I want.

The amount is in the X,XXX and I just don't know if I should purchase it.

I just can't get it out of my mind. I just don't want to settle for second best, but I also think if I research hard enough I may find a domain for better value.

I am finding that I am not wanting to continue on with my project until this is sorted it out, is this silly of me?

I just don't really want to part with x,xxx for a domain.

[openeyes]

If you decide it's not worth 4 figures, would it be worth looking at .org, .net, .us, etc?

[ellie]

No I honesty think .com is the most widely know and best for the type of site I am wanting to develop.

[rocksupreme]

Will you realistically get your investment back within a year?

[Curtis2011]

Originally Posted by ellie

I have this domain that I really want, I have something very close, but I think most people will automatically type in the name that I want.

The amount is in the X,XXX and I just don't know if I should purchase it.

I just can't get it out of my mind. I just don't want to settle for second best, but I also think if I research hard enough I may find a domain for better value.

I am finding that I am not wanting to continue on with my project until this is sorted it out, is this silly of me?

I just don't really want to part with x,xxx for a domain.

Unless you're buying something like Sex.com or Coca-cola.com, paying more than $10-20 for a domain name is stupid.


The domain name doesn't make the business. It's just a name. Once you have it, you still have to:

1) Build a quality website.
2) Get traffic to it.
3) Convert the traffic (make sales, get emails, etc.)

With a little creativity, you could probably come up with a much better domain name. Think of using alliteration or something memorable in it that will catch on people's minds. (or when all else fails, just use a variation of it. For me, allaboutacupunture.com was taken, so I added some hypens and ended up with an even more readable domain name that said the same thing)

[ellie]

Originally Posted by Curtis2011

Unless you're buying something like Sex.com or Coca-cola.com, paying more than $10-20 for a domain name is stupid.


The domain name doesn't make the business. It's just a name. Once you have it, you still have to:

1) Build a quality website.
2) Get traffic to it.
3) Convert the traffic (make sales, get emails, etc.)

With a little creativity, you could probably come up with a much better domain name. Think of using alliteration or something memorable in it that will catch on people's minds.

I understand all those points and I will be doing all three points. This is a shopping site/marketplace, so it needs to be short and catchy.

[Gene]

Originally Posted by ellie

No I honesty think .com is the most widely know and best for the type of site I am wanting to develop.

I think .com is the best for any kind of commercial site.

[David Turnbull]

Originally Posted by Curtis2011

Unless you're buying something like Sex.com or Coca-cola.com, paying more than $10-20 for a domain name is stupid.


The domain name doesn't make the business. It's just a name. Once you have it, you still have to:

1) Build a quality website.
2) Get traffic to it.
3) Convert the traffic (make sales, get emails, etc.)

With a little creativity, you could probably come up with a much better domain name. Think of using alliteration or something memorable in it that will catch on people's minds. (or when all else fails, just use a variation of it. For me, allaboutacupunture.com was taken, so I added some hypens and ended up with an even more readable domain name that said the same thing)

That is an incredibly silly approach. You're basically saying the name of the brand doesn't matter. There is no one component that "makes the business" - each single item is a cog in the wheel, and that includes the brand name.

[ellie]

Originally Posted by David Turnbull

That is an incredibly silly approach. You're basically saying the name of the brand doesn't matter. There is no one component that "makes the business" - each single item is a cog in the wheel, and that includes the brand name.

Spot on

[SamStone]

If you are a newbie, I would say don't pay that much for the domain, on the other hand if you know what you are doing and it is a great domain that you think will be a great brand and assest, then go for it!

At the end of the day it is a great domain which it seems like it is and things don't work out you can always just sell the domain and who knows you might even make a profit on it.

Goodluck

[Brutha]

How big is your budget?
If you spent 5,000$ out of a 200,000$ budget that's different than spending 500% out of a 20,000$ budget.

Flickr probably should have brought the flicker.com domain when they started out for a 4 figure sum (now the guy wants to sell it for more ).

[funchy]

Dont pay for it. Just owning the right word will not ensure you traffic. Those domain sale things are such a scam.

And you have to be really careful with your domain name. I had one stolen from me when a billing glitch didn't get the renewal link to me on time. Within hours some greedy stranger grabbed something that really meant nothing to him, and then he tried to sell it back to me for $1,000. Make your site about the content and build a site "brand"; don't make it about the URL.

Write the premium content... and people WILL find you.

[Vanessa]

ellie,

There's some good things pointed out here about buying this domain. From my perspective paying a premium for a domain is a solid choice when the name is intricately tied to to revenue or equity in a company. Most start ups and new websites do not have any brand equity or good will value and should take into consideration where this premium fee is cutting into for the overall business budget.

As Brutha pointed out the fee for the domain should be a small % relation to your overall budget for this business. The domain alone will not make you money and having an exact match domain in a competitive market may give you a leg up in traffic but have you looked at the data to know this to be true and what kind of return would that be?

When Digg started, they wanted the domain dig.com but it was taken and available for 8k. They didn't want to spend their precious start up funding on buying it since they were cashflow sensitive. So they added a g at the end and built the value and brand they were capable of without the original domain.

Also if you're concerned about having to be the exact phrase people think about for a shopping-related site. Look at and model the success of sites like woot.com and kaboodle.com Neither has an especially keyword rich or market giveaway domain but each has built value, a unique shopping experience, have growth in traffic and better conversions as they go along.

When I read your first post, what I actually saw was that you personally want this domain because you think you have to have it, as though all success hangs from this one decision. From that perspective, if you're emotionally driven to buy the domain, you're going to do it even if you don't want to part with the money. Ideally you should feel good about the expenses you have related to growing your business.

Success in a business website rarely comes down to one specific factor like domain name. Instead, it's your overall model, your effort and what the market responds to that makes it the success you envisioned.

[ellie]

Cool lots to think about here, thanks for all the feedback so far.

Indecently tonight I was listening to a interview from mixenergy.com with the founder of goodreads.com How A Quiet Developer Built Goodreads.com Into Book Community Of 2.6+ Million Members – with Otis Chandler
the founder was talking about how he initially purcahsed the name goodreadz.com with a "z" at the end. He said luckily he was able to buy goodreads.com for a couple of thousand...and he's not sure if it would of done so well with goodreadz.com. He spent thousands of dollars on it, when starting up and he really found it hard to part with money as he was a start-up with not much money, but thankful that he invested in it. It was also suggested to him that a good domain name will give you an extra 30% in succeeding. Don't know how true that is, but I do see the value in a good domain name.

The thing is if I don't buy the domain now and my idea becomes successful than the domain owner will bump up the price even more. However, I think I just really need to brainstorm some more about my name.

The domain as it stands is not worth the amount the domain owner is quoting. The only way it would be successful is if someone marketed it right. However, the name is pretty easy to remember, but still not as short as say a 4 or 5 letter name.

[AndrewWarner]

Originally Posted by ellie

Cool lots to think about here, thanks for all the feedback so far.

Indecently tonight I was listening to a interview from mixenergy.com with the founder of goodreads.com How A Quiet Developer Built Goodreads.com Into Book Community Of 2.6+ Million Members – with Otis Chandler
the founder was talking about how he initially purcahsed the name goodreadz.com with a "z" at the end. He said luckily he was able to buy goodreads.com for a couple of thousand...and he's not sure if it would of done so well with goodreadz.com. He spent thousands of dollars on it, when starting up and he really found it hard to part with money as he was a start-up with not much money, but thankful that he invested in it. It was also suggested to him that a good domain name will give you an extra 30% in succeeding. Don't know how true that is, but I do see the value in a good domain name.

The thing is if I don't buy the domain now and my idea becomes successful than the domain owner will bump up the price even more. However, I think I just really need to brainstorm some more about my name.

The domain as it stands is not worth the amount the domain owner is quoting. The only way it would be successful is if someone marketed it right. However, the name is pretty easy to remember, but still not as short as say a 4 or 5 letter name.

Glad my interview is helping you think through this decision.

For what it's worth, I've interviewed more entrepreneurs who had to close up because they ran out of money than entrepreneurs who regretted not picking a better domain.

[Gene]

Originally Posted by ellie

Cool lots to think about here, thanks for all the feedback so far.

The thing is if I don't buy the domain now and my idea becomes successful than the domain owner will bump up the price even more. However, I think I just really need to brainstorm some more about my name.

The domain as it stands is not worth the amount the domain owner is quoting. The only way it would be successful is if someone marketed it right. However, the name is pretty easy to remember, but still not as short as say a 4 or 5 letter name.

Have you made a much low counter offer? Sometimes the initial asking price is intentially much more than what the owner is willing to accept for the domain.

[Curtis2011]

Originally Posted by David Turnbull

That is an incredibly silly approach. You're basically saying the name of the brand doesn't matter. There is no one component that "makes the business" - each single item is a cog in the wheel, and that includes the brand name.

No, I am saying that unless you have built a profitable online business before and know that your new business will be successful, paying $1,000+ for simply a domain name is retarded.

If you know where to look ***COUGH, SBI FORUMS!, COUGH*** you could pay $1,000 for an already-built website that is already making money.

A domain name itself, with no prior marketing/branding/intrinsic value, is nearly worthless.

Please note that a domain name like Flicker was not worth anything until Flickr had built itself into a million dollar+ business. For every Flickr out there, there are thousands or even millions of websites that are absolutely worthless.

[ellie]

Originally Posted by AndrewWarner

Glad my interview is helping you think through this decision.

For what it's worth, I've interviewed more entrepreneurs who had to close up because they ran out of money than entrepreneurs who regretted not picking a better domain.

Oh Andrew great to see you on here! I have just spent the whole night listening quite a few of your interviews...they are awesome! So helpful and inspiring. The interviews just help to put things into perspective, which one can forget. They just reiterate my thoughts ...which sometimes I can try to talk myself out of. Main message is do little prototypes and build up your idea, than just waiting for everything to be perfect.

I just finished with the interview with Noah Kagan from Gambit Gambit Co-Founder Reveals His Biggest Entrepreneurial Mistakes And What He Learned – with Noah Kagan What a great interview. I think years to come I will be thanking you too

I'm still a bit confused with your response though, so do you think I shouldn't worry about finances more than a domain name?

Gene I did give them an initial offer, which they rejected. On their actual site they said they were accepting offers through sedo in the high XXX and then once I emailed they bumped it up to x,xxx. I told them they were dreaming and that I could get purchase a lower letter domain name for that price with traffic. I said I was happy to double my off but not go up into the x,xxx.