opinion What % of Revenue is reasonable for a Company to invest in a Domain?

[enterscope]

When you are seeking potential domain name investments, what is a realistic percentage of annual revenue that a company would or should invest in a domain name?

Say a Company makes $2 million per year in annual sales, what would be the maximum you think they would spend on a premium domain name for their business?

I think tech-related companies will generally invest more, but companies with a serious marketing team will realize the value in a premium domain name also. Thoughts?

 

[gilescoley]

The only issue I see here is a company that is making $2 mil in sales will already own the domain for their business (most of the time)

The exceptions are:

1) They are changing their name/rebranding
2) They operate in the UK and use the .CO.UK and want to expand so they want the .COM as well

I don't think it always comes down to how much they make in sales but really what their advertising/marketing/IT budgets are? Domains often fit into different budgets as well, like IT, Marketing, Business Development etc

It really depends on how savvy the marketing people are and whether they realize the importance of a domain name

 

[Asfas1000]

I guess it depends on how beneficial the domain rates to be for them, and also the potential loss if a competitor acquired it instead ?

 

[main]

I think on average, companies spend about 8 - 12% of their revenue on marketing. I think existing companies are willing to spend in the 1 - 2% of revenue on a domain. It depends on how much the Internet is a part of their business.

 

[biggie]

$39.00 max, which is high end "retail" cost to hand register a domain.

for instance, our company hand -registered their company name .com in 1996

though as they created and marketed new products, they acquired some of those "brands" in their respective .com extension at reg fee.

i'm sure many other businesses, proceed in that manner as well.

however, some companies/services may "upgrade" to a shorter domain, a more descriptive domain, a brandable domain or a generic name with inherent traffic....depending on nature of business and how " in-tune" they are, with the advantages of acquiring additional domain names.

costing at a percent of revenue expenditure, i think, would have to be predicated on an anticipated increased level of traffic/earnings from acquiring an aftermarket property.


probably one should consider what percent of investment capital should they expense, before any revenue is earned or a profit realized.

imo....