--- title: "Domain Assets - Shifting End User Perspective | Grit Brokerage" description: "Why a premium domain is an investment, not a budget line item, and how brokers answer end users who say the price is too high for their budget." url: https://gritbrokerage.preview.multisites.ai/post/domain-assets-shifting-end-user-perspective publisher: Grit Brokerage contact: https://gritbrokerage.preview.multisites.ai/contact offer: https://gritbrokerage.preview.multisites.ai/inquiry --- [Market insights](https://gritbrokerage.preview.multisites.ai/blog?topic=market-insights) # Domain Assets - Shifting End User Perspective Domain broker Michael Law explains how Grit Brokerage responds when buyers say a premium domain does not fit their budget. The post argues a premium domain is an appreciating asset with lifetime utility, SEO, security and brand alignment, not a recurring expense like a web hosting bill. By Grit BrokerageFeb 8, 2020Updated Feb 12, 20202 min read ![Business buyer weighing a premium domain name as an investment rather than a budget expense](https://gritbrokerage.preview.multisites.ai/_astro/a53ed9_7aeea9c9c5954117804573b802589a73.B2d773WS_MaMKR.webp) As domain brokers, we’re constantly in talks with companies about why they should acquire, upgrade and/or launch on a premium domain name instead of settling for a lower quality one. Inevitably, whether we’ve pitched the sale to a company or they have inquired about a domain we represent, one of the biggest deciding factors is the cost of the acquisition. Oftentimes when finally presenting the potential end user with a price for a domain, we’ll get a response that it does not fit within their “budget”. Many investors negotiating a domain sale would likely cringe when they receive this type of response in their inbox and assume the deal is dead. However, this is actually a great opportunity to further educate the prospective buyer about exactly what kind of purchase they are considering and how it can impact their business. The purchase of a premium domain name is an _investment_ in an appreciating asset that offers a lifetime of utility, SEO, security and enhanced brand alignment. It provides the business a return on that investment that is quantifiable and pays dividends in perpetuity. This is much different than an expense coming out of a budget which is usually a recurring cost (for example, a web hosting bill). So, we can actually agree with the end user prospect who exclaims that the price is too high for their budget. The domain they want (or need) is simply too valuable to be denoted as a line item expense. If you’re a growing business with aspirations to become a heavyweight in your industry, then the acquisition of the perfect URL to match your company name is one of the most important investments you can make and is not likely to fit into your preset budget. The world is becoming more and more digitally connected and as tens of millions+ people gain access to the Internet annually, it is for certain that the best one word, short, highly brandable and keyword .com domains will continue to rise in value and become increasingly expensive. The biggest companies on earth already recognize this and have made significant investments in domain names. Not only have they acquired their brand matching .com but many also hold hundreds if not thousands of ancillary domains that describe the products or services they offer. That said, if you zoom out, it is still very early and there are great opportunities for businesses and individuals to capitalize from investments in domain name assets. Authored by: Michael Law, Grit Brokerage Domain Broker ! ## Questions this post answers ### Is a premium domain an expense or an investment? The post calls it an investment in an appreciating asset that offers lifetime utility, SEO, security and brand alignment. It contrasts this with a recurring expense such as a web hosting bill that comes out of a budget. ### What should a seller do when a buyer says it is over budget? The post says this is a chance to educate the buyer about what they are considering and how it affects their business. A domain this valuable is too important to treat as a line item expense. ### Do large companies invest in domain names? Yes. The post says the biggest companies have made significant investments in domains. Many own their brand matching .com plus hundreds or thousands of ancillary domains that describe their products or services. ## Terms in this post - [Premium domain](https://gritbrokerage.preview.multisites.ai/glossary/premium-domain) - [Domain broker](https://gritbrokerage.preview.multisites.ai/glossary/domain-broker) - [Domain name](https://gritbrokerage.preview.multisites.ai/glossary/domain-name) - [End user](https://gritbrokerage.preview.multisites.ai/glossary/end-user) ## Keep reading - [Digital Assets - Domains, NFT’s, Hype & ValuationThis post compares NFT art with premium domain names as scarce digital assets. Beeple's Everyday sold for $69 million at Christie's, while the highest recorded domain sale, Voice.com at $30 million, is less than half of that. Grit Brokerage argues domains offer lifetime utility and remain undervalued.](https://gritbrokerage.preview.multisites.ai/post/digital-assets-domains-nft-s-hype-valuation) - [How Much Is My Domain Worth? Domain Valuation ExplainedA domain is worth what a specific buyer will pay for it. Start with comparable sales of similar names, then adjust for length, extension, keywords, and brand fit. Treat automated appraisals as rough guides. The same name can be worth far more to an end user than to an investor.](https://gritbrokerage.preview.multisites.ai/guides/domain-name-valuation) - [How to Sell a Domain Name: A Broker's Step-by-Step GuideTo sell a domain name, set a realistic price from comparable sales, then reach buyers through a marketplace, a broker, or direct outreach. Agree on a price, close through a third-party escrow service, transfer the name to the buyer's registrar account, and collect payment once the transfer is verified.](https://gritbrokerage.preview.multisites.ai/guides/how-to-sell-a-domain-name) - [33 Domain Name Upgrades & Acquisitions in 2021This post lists 33 domains that changed hands in the first half of 2021, mostly one word .COMs bought as upgrades from two word names or other extensions. Disclosed prices include Angel.com at $2,000,000 and iBox.com at $1,560,000. Grit Brokerage says it brokered more than 15 one word .coms since January 1.](https://gritbrokerage.preview.multisites.ai/post/33-domain-name-upgrades-acquisitions-in-2021) - [35 Recent Premium Domain Acquisitions & UpgradesThis post lists 35 domains that recently changed hands, mostly one word .COMs now used as the buyer's permanent brand. Examples include Cal.com, upgraded from Calendso.com, and Deel.com, which came from LetsDeel.com. Grit Brokerage compiled the list from James Iles of JamesNames.com and his Twitter feed.](https://gritbrokerage.preview.multisites.ai/post/35-recent-premium-domain-acquisitions-upgrades) - [Five Letter, One Syllable, One Word .Coms Used in BusinessMichael Law describes learning that Discount Tire owns tires.com and tire.com, and uses them for fast, misspelling-proof access. The post lists other five letter one word .coms owned by large companies, such as Guard.com and Force.com. It also notes Grit Brokerage sold Knife.com, Doors.com and Throb.com that year.](https://gritbrokerage.preview.multisites.ai/post/five-letter-one-syllable-one-word-coms-used-in-business) ## Buying or selling a domain? Call, text or email. Responsiveness is our trademark, and a broker answers, not a form robot. [Talk to a broker](https://gritbrokerage.preview.multisites.ai/contact) [Call (442) 500-GRIT](tel:+1-442-500-4748)