Domain Name Value Explained

How do you determine the value of a domain name for your brand?

This is the challenge most of our customers face and yet it truly is the million-dollar question.

The reason we say this is because domain names impact the very foundation of a company.

The internet truly changed the way we interact with a company and yet the fundamentals of branding and positioning have not changed.

On the surface, many of the brands we speak with have built strong businesses with some having raised in the hundreds of millions of dollars.

No matter the size their domain name is still essential for their ability to own their global positioning, branding, marketing, and email security.

Domain Name Value & Revenue Growth

Great, now let’s talk

Is your company looking to scale and grow?

This question seems basic, and yet it is a deciding factor for brands that acquire their perfect domain name.

This is one of the first questions that I ask a founder or CEO.

Brands that are looking to scale must own the brand in the raw form.  We call this the “exact match” domain name.


Customers reward simplicity.

Simplicity creates trust and communicates leadership.

Any bit of confusion created by your domain/brand being different is magnified the instant you go to scale and increase your marketing investment.

At this point, it is almost too late to recover for most companies. 

Many companies only get one opportunity to own their branded domain name.

 How do you determine the impact on your brand?

What is the domain name value for your brand?

Here are three ways you can look at the value of a domain name for your company.

  • Basic revenue growth assumptions
  • Increase conversion and traffic
  • Value of a similar investment such as an employee

Let me explain:

When was rebranding from they had a board meeting.  They all agreed that acquiring would have a positive impact on their growth.

They looked at several projections, including the worst possible scenario.

Remember at this point they were experiencing amazing growth from their appearance on Shark Tank.  They also launched a brand new product that was going to become the foundation for more growth.

In other words, they had everything going for them but a great brand.  They were

Their very worst case number was 1% growth projections on their top line.  If acquiring for one million dollars only had a 1% impact on their business they all agreed it would be worth the investment. 

At their current growth, this would pay itself off in five years.


They ended up having such strong growth that it paid for itself in less than a year.

So, what is your number?

This number is going to be different for every brand and company.


Owning your perfect domain name will have a positive impact on your ability to grow.

When Hive Team rebranded to they experienced a 40% increase in traffic overnight.

There are now over fourteen companies called Hive that would love to own

Some of this traffic most likely came from these other companies because they created confusion with their branding. 

What would a 20% or a 40% increase in traffic do for your business?

How much business are you sending to another company?

Domain name value in perspective

How much does your mid-level sales manager make?

Will investing in your domain name produce as much value as one of your employees?

Think about this investment over a five year time period.

An average employee with benefits will easily cost you $100,000  a year.  Over five years, that is an investment of $500,000 into one employee.

Will acquiring your branded domain name have as much impact as one average employee?

Your domain name impacts your positioning, branding, marketing, and your ability to scale.

Can you push your board for one more employee?

Think about acquiring your domain name like hiring another salesperson but one that you own after you pay the fee.


What is owning your branded domain worth to your company?

Many companies never get the opportunity to create simplicity by upgrading their domain to the raw essence of their brand.

Three ways you can determine the domain name value for your brand, including looking at overall revenue growth, increase conversions and traffic, and similar investments within the company.

Owning your branded domain name will have a positive impact on your ability to scale and communicate your message.

If you need help finding your number reach out to me for a quick fifteen-minute strategy call.