$25,000 for a Domain Name is (not) Crazy.

Originally published on Medium

$25,000 for a Domain Name is (not) Crazy.

Or is it?

– Follow Alan Dunn on Twitter

I registered my first domain name in 1996 and have been involved in more than $50 million in sales since then. If there is one word I would never use about domain name prices, it would be “crazy.”

Crazy, by Google’s definition, refers to something that’s “mentally deranged, especially as manifested in a wild or aggressive way.” Synonyms include insane, deranged, lunatic and — my favorite — out of one’s mind.

Every domain name transaction has a buyer and a seller. The price is all but relative and starts with the seller’s asking price.

This is the only place where a little bit of crazy may come in.

Owning a mediocre domain and asking $250,000 for it may seem a little crazy, but if you get a counteroffer then crazy is good. This type of crazy also falls in line with the simple notion of “if you don’t ask you don’t receive” — a basic foundation of anyone selling anything.

Where the word crazy gets thrown out the window is when the potential buyer makes an offer. People do not throw money away. When a counteroffer is made, the exact value of that domain name to their business is known and a financial offer is made that represents this value.

So, before a selling price is established you already have two very sane people negotiating a deal. There is no crazy here.

For first-time buyers and people not familiar with the domain name industry, it’s important to realize that good domain names are incredibly valuable assets today. There is a thriving investor market for premium domain names and an ever-increasing demand for one-word and two-word meaningful domains from companies. In fact, if you have interest in a good domain name then you can almost bet someone else has inquired abou