A story in thecoventrytelegraph today demonstrates that you only need to own 1 domain to understand the value of domains.

The owner of the domain Guitars.co.uk turned down an offer of $45K, plus a percentage of future profits saying that he would need at least $170K for the domain.

“The domain name has given me an international presence on the web I’d otherwise struggle to get”.

“So anything less than £100,000 ($170K) just wouldn’t be feasible.”

“He’s not had to spend a penny in advertising since he bought the address, while many of his rivals pay somewhere between £800-£1,000 to take out a page in an industry magazine.”

“Because of its universally appealing name he says his site receives 800 hits a day, helping him to sell at least 20 specialist guitars a week.”

The domain holder then goes on to say:

“It’s interesting that with the economic slump, the value of property, and almost everything else, seems to be falling. But the Internet is still going strong.”

A real case study that shows the value of a great generic domain.