Internet Domain Index (IDNX)

Like stocks, bonds and real estate, premium domains are assets with discernible value and price trends. The Internet Domain Index (IDNX) is the leading price index for the domain market, calculated from more than 225,000 real sales and used by Bloomberg and Thomson Reuters.   Notice how it closely tracks the Nasdaq 100:

The publicly reported sales powering IDNX also serve as "comparables" for valuation purposes.  From these sales, we know that one word .com domains typically sell for six figures (USD) or more.  Two word .com domains typically sell for four or five figures (USD).  A descriptive word or phrase in a lucrative market (i.e., often commands a premium valuation as lead generation value and return on investment can be calculated using search engine ad rates.   Consider the following sales:

Recent Sales - $600,000 - $300,000 - $252,000 - $250,000 - $250,000 $180,000 - $140,000 - $85,000 $35,477 $14,000 $10,000 $7,500

Domain Names 101

If you're new to the game, the infographic below (provided by our friends at Domain Name Sales), shows why premium domains are so important and why it pays to invest in these valuable assets: