Candy.com is just a domain name and this weekend it was sold for $3 Million. You might be wondering why, but there should not be any surprise given the importance of domain name in age of internet marketing. A domain name is your own unique identity and your business depends on it.
But why some domain names are sold for over a million dollars when you can buy a domain name for $10, like i bought zenversion.com for $9.95.
Reasons for such a high price could be:
Size: The smaller the size of the domain name, the better it is. It is easier to remember, difficult to misspell.
Common word: Common words like, candy, playground, toys, medicines and games are general names.
Business related: like sellyourhome.com, jobs.com etc directly points to your business.
A domain name builds up your brand. If your brand is already famous, a domain name can increase awareness of your brand. If your domain name matches your company name, it reinforces your brand, making it easier for customers to remember and spread the word about it.