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Q: Generic domain name asset value ( No Answer,   0 Comments )
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Subject: Generic domain name asset value
Category: Computers > Internet
Asked by: domainanalysis-ga
List Price: $200.00
Posted: 17 May 2006 22:38 PDT
Expires: 16 Jun 2006 22:38 PDT
Question ID: 729943
Is there evidence to support the position that a generic domain
name that defines an entire industry, and that has remained
undeveloped for many years, risks loss of it's asset value by being
developed and/or monetized?

Background: Traffic and revenues are commonly used as indicators for
premium domain name acquisition and valuation purposes. Certain
premium generic domain names, however, possess extremely high value
due to pre-existing name recognition. Some one-word generics, for
example "autos.com", "airlines.com" or "games.com", are comparable to
the domain in question, and have demonstrated these high values.

I would like to know if a "virgin" one-word generic domain name, one
that has never been developed or exploited via pay-per-click
advertising/parking, has any extra value simply because it has never
been used, and has no previous history or associations.

I am looking for evidence-based answers only please, as there are many
opinions on this.

Assumptions: The development/monetization/site-history is assumed to
be mainstream/generic in nature, and would not be flawed technically
or in it's design. Also, any content would not be malicious,
irresponsible, or illegal in nature.

Request for Question Clarification by pafalafa-ga on 18 May 2006 17:14 PDT
domainanalysis-ga,

Interesting question.  

While I have some opinions on the topic, you've made clear that it's
not opinions you're looking for.

As for facts, though, there's a limit to what's out there.

I did come across a good deal of data on the actual prices being paid
for some of the types of names you asked about.

The all time record-holder seems to be sex.com, which went for more
than $10 million.  There are a few other million-plus sales as well,
like diamond.com, and creditcards.com, though these are often for
functional businesses, in addition to the name.

Other high-ticket sales included mortgage.com for around $200,000, and
dirtbike.com for $75,000.


These are mostly recent sales, and show that the market for some of
the categorical domain names is still pretty robust, even given the
over-hyped, boom-and-bust character of the business during the glory
days of the dot-com explosion.


HOWEVER, as to your specific question, I've found very little factual
information.  There is not, as far as I can see, an example of any
'virgin' names that have recently become available, and no
evidence-based way to evaluate the impact on value that developing
such a name would have.

Can you tell me a bit more about the type of information you were
hoping to get as an answer to your question.  Perhaps with a more
focused search, I may be able to uncover the information you need.

Thanks a lot,

pafalafa-ga
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