Domain names are now an integral part of any business. Whether the use is primarily for email, a company website, or part of a marketing campaign anyone starting a business must secure a domain name.

The difference between a domain name and other marketing expenses however is you are acquiring a presence which help future customers define you, not leasing one.

Owning a premium domain has become expensive with the average price of a domain name hovering around anywhere between $5,000 and $20,000 however how expensive is this?

If one were to compare the price of almost anything compared to its original cost could we not classify everything as expensive. A $3 bottled water costs how much to produce? Or a $300 pair of designer sunglasses which probably cost less than a mocha to manufacture?

The argument about why domains command so much value simply breeds from a lack of understanding about the value of the underlying asset, and possibly some jealousy. If your grandmother purchased a piece of oceanfront property 10 years ago for $100,000 and today it's worth $500,000 would you question the value of the property? No, because real estate has a tangible, acceptable value in our heads. Domain names are property and although many of them are owned by astute investors who saw the future value of these assets and simply monetize them by serving ads (instead of adding value) the majority of these investors should never be criticized or defined as squatters but smart people who were in the right place at the right time.