Does The Value of Domain Name Still Related to The Value of Brand?



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DN.com Staff
With substantial capital, LeShi TV has just changed its domain name. LeShi Network has officially been renamed as LeShi Video, and launched the million dollar domain name LE.com. It is said that the change is for preparation of international strategy. Similarly, Tesla has finally won the domain name Tesla.com. The price of the domain name has not been revealed.

In the Internet industry, powerful guys always spend millions on the domain names once they have the money. Thus, many investors have made a big fortune on the domain business. As it is said, 360.com was sold for more than $17 million, and the owner of game.com, John Xu, refused the offer of $18 million. In the age of Internet, the premium domain names become rare treasures. In the secondary market, the average prices of NNNN.com domain names are over $16k, while that of LL.com domain names are more than $1 million.

If the domain name was targeting for a big company, then the price could skyrocket. In 2013, JingDong spend more than $5 million on the domain name JD.com. Though it seems to be a huge expenditure, the new domain name actually saved JingDong more than 100 million on the traffic promotion.

A memorable short domain name will bring great benefits, but nowadays with the development of powerful search engine, does the bond between brand and domain name still stay necessary and solid?

We all know that for most Internet users, they do not type in the domain name to the address bar directly. Instead, they will google the relative key words at first and click the links the search engine provides. If you visit a website frequently, it is more likely that you open it through the link in the Favorites.

Even though, you cannot deny that the most memorable domain name does not need the search engine redirection. Users will directly type in eBay.com or JD.com in the address bar. In the past when JingDong use 360buy.com, many people thought it was a brand under 360Qihu.

In a nut shell, a good domain name can represent the power of a company and impress the users. In another aspect, it is also an approach to protect the brand image. So it is an advisable choice for the companies with ambition and finance support to acquire relative domain names.


Declaration:this is an informative article that do not represent official investing advice, with no intend in misleading readers.Please be open-minded and objective. Welcome varied discussion below.Thanks!
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