How much is a domain name worth?

How much is a domain name really worth?

That is the question being asked by McGrathNicol the administrator in charge of selling off the assets of jobs.com.au. $10K, $50K, $100K, $500K, $1 Million, it would have to be around $5 million if they are hoping for the sale to start covering the understood losses from the business operations of jobs.com.au.

From my point of view based on the amount of advertising anyone is going to have to do to break into and succeed in the Australia job board marketplace, any domain name will do. It does not necessarily need to have jobs in it, make it 1 or 2 syllables and easy to remember.

On a related note Boss Personnel site, the group were involved/behind jobs.com.au, also seems to be down.

9 thoughts on “How much is a domain name worth?

  1. Hi Michael

    Yes this is an interesting question isn’t it. I believe it is worth very little to the average player but a heck of a lot to the right ones.

    I don’t necessarily agree that success in this market is purely a function of advertising spend. I do agree that there needs to be a lot of advertising done to break into generalist, but I believe that partnerships and existing networks are far more important.

    We are aware of one major o/s player who wants that domain name and in my opinion I think they should pay what it takes to get it. They one of a very few number of potential bidders who I think can really crack the generalist market.

    Funnily we had a tidy little sum set aside to have a bid on the domain but the price got way too big for us way too quickly :). We weren’t going to put a job site on it though.

    Lets hope for interest’s sake that we get to find out the final price.

    cheers
    Brett

  2. Agree WRT to advertising spend does not equal success, however without substantial advertising you can’t crack the generalist market. Unless of course you fundamentally change the market which I am not going to say is impossible but unlikely.

    Linkages with the other networks are critical as well but also limited in power as at the end of the day the existing networks are not going to let a new entrant take over their market.

  3. Fantastic! Yes I remember your post found it very interesting as it mostly confirms that the domain generic (cars, jobs, houses) aren’t necessarily the key to online success. There is lots more to it.

  4. My view is that the domain name is too generic in the current climate. Furthermore it’s tarnished.

    I can’t see what an established player would want it for other than to stop someone else using it. Seek or MyCareer are hardly going to re-brand as jobs.com.au . They have too much invested in their established brands.

    However, there’s one new player who I suspect will be interested in it, jobsjobsjobs .com.au – I wonder if that’s the real reason they have postponed their launch 😉

    Shouldn’t be too hard to find out what is sells for – at the very least all the creditors should be able to find out. It’s bound to get out to the press.

  5. Kev, Brett had the scoop this morning…. mmm blog post seems to have been taken out – but word as per the report was that only offers over 200k would be considered… which as I said earlier is 200k too much to pay for a web address

  6. Agree guys, way too much in general and it is very tarnished.

    It is very interesting that blog post has gone, I wonder what happened?? Just short Brett a note to find out.

  7. Sorry but I couldn’t disagree more.

    You cannot pay for a brand, it is something created, usually by chance or with a LOT of money and smart planning (IMC). There are many ways to create brand, but very few that would already have such an association as jobs.com.au. It’s a premium generic domain name at it’s best. The brand association is there and well worth good money. When does a brand become a brand? And how much does that cost in todays climate??

    I sincerly hope the new owner (or whoever owns it – lol) does the site justice and develops it with search in mind and wipes the currently inadequate job sites in the .com.au space off the map. Given a few quality trusted inbound links and the right development platform and business model (Automate it, small fees, partner with recruiters, good online interface and integrated tools), give tools to develop pages fast, offer other web dev sweeteners – better tools. It’s as much about how Google and the Web works as the name itself.

    Also the domain is worth as much as the best owner for it is willing to pay. CareerOne and Seek missed the boat big time on this one, and I hope they get spanked for it.

    Naturally the current domain climate in the .au space is interesting as well. I really do hope the rules are opened up and transparent once and for all and domains can move freely and direct navigation will start to have a real effect as domainers and companies with a true web development passion out-do Google with quality content and web-destinations in their own right.

    It’s only a matter of time and it will happen. I hear what you guys are saying and I agree to a point but I really think there is more to it. Jobs.com.au is an amazing domain, fast forward 10 years it will be laughable whatever it went for.

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