Domain Names as Assets: 5 Things You Haven’t Considered
Domain names have emerged as surprisingly valuable assets that can significantly impact a company’s bottom line.
When Melbourne-based CarSales.com.au sold for a reported $12 million in 2009, or when Insurance.com.au fetched over $1.2 million in 2015, it became clear that these digital properties represent far more than just web addresses.
For small to medium businesses, even industry-specific domains can be worth tens of thousands of dollars—yet many business owners fail to properly account for these assets in their financial and succession planning.
1. Registration and Ownership Details Matter
Many business owners register domain names under personal email addresses or names, creating confusion about whether the domain is a personal or business asset. This can create complications during business transitions or estate settlements.
2. Renewal Dates Can Be Critical
Domain names require regular renewal, typically annually. If renewal dates are missed after the owner’s passing or during business transitions, valuable domains can expire and potentially be purchased by competitors or domain squatters.
3. Domain Portfolios May Have Hidden Value
Some businesses accumulate multiple domains over time — alternative spellings, different TLDs (.com, .net, .org), or defensive registrations to protect their brand. This portfolio may have collective value that exceeds the sum of individual domains.
Business owners underestimate the combined value of their domain portfolio. These digital assets should be professionally valued as part of comprehensive estate planning, especially for businesses with significant online presence.
4. Domain Names Are Transferable Assets
Domain names can be bought, sold, and transferred like physical property. Their value can range from a few dollars to millions, depending on factors like keyword relevance, brevity, and memorability.
Many business owners don’t realise that their domain names are tangible assets with real market value. There have been cases where a domain name was worth more than some physical business assets, yet it wasn’t properly accounted for in business succession plans.
5. They Should Be Included in Your Will
If you own valuable domain names, they should be explicitly mentioned in your will or business succession plan. Without proper documentation, your digital assets might become difficult for your beneficiaries to access or transfer.
“Domain names can fall through the cracks in estate planning because they exist in the digital realm,” says David Kaplan, a “domainer” and co-founder of Willed, an online end-of-life and estate planning service. “Including specific instructions for your domain names in your will ensures your digital assets are protected and transferred according to your wishes.”
Planning Ahead
Taking inventory of your domain names, documenting login credentials, establishing clear ownership, and including these assets in your estate planning can save your heirs or business successors significant headaches and potential financial loss.
By treating domain names as the valuable business assets they are, you ensure these digital properties remain protected during business transitions and estate settlements.
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David Boyd
