How Much is RH.com Worth?

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Two-letter domain names such as RH.com have a significant value to both domain investors and end-users. In general, two-letter .COM domains such as RH.com are currently worth in excess of $500,000 with many names reaching the $1 million or more mark.

Why is RH.com valuable?

Why are two-letter .COM domains such as RH.com so valuable? Well, let’s take RH.com as an example here. RH.com is one of just 676 two-letter .COM domain names that are in existence. There are over 127 million .COM domain names registered, which means RH.com and the other two-letter .COM names represent just 0.0005% of all .COM domains. Rarity makes RH.com a highly valuable name, especially to investors who pay top dollar to own the world’s rarest names.

There’s also the question of trust and stability. By owning a domain name like RH.com for your brand, you are displaying a sense of trust to your customers or clients. As a consumer, would you trust RH.com or official-RH.com more? The right domain name gives an instant sense of trust in a brand to anyone who visits the domain. A sense of stability and permanence also comes from owning a domain name like RH.com. It shows a long term investment in a brand.

A two-letter domain name can also offer a company some security from data and traffic leakage that is commonplace amongst longer domain names.

These factors, and more, are why RH.com is a domain name that would likely fetch $500,000 at the very minimum. These factors are fine in theory, but let’s take a look at some examples of two-letter .COM sales to back up the overall value of RH.com and two-letter .COM’s in general:

Case Studies

Real world usage of domain names is a key indicator of value, which is why we have put together a series of small case studies below. If several companies spend six, seven or even eight-figures on a two-letter .COM domain name, it demonstrates clearly that two-letter .COM’s play an intrinsic value in the online brand of savvy businesses. Read our case studies:

1. LX.com
LX.com may not be familiar to you, but the company that owns it almost certainly is. Cable TV company NBC launched a brand new service in 2019, aimed at Generation Z and millennials. The new brand is called Local X, with the company opting to use LX.com as their main domain name. With LX.com, NBC has acquired a memorable domain name that instantly instills trust, confidence, and stability into consumers. Interestingly, NBC did not acquire the LocalX.com domain name (as of publishing).

2. SE.com
Schneider Electric made a significant upgrade to their digital identity by acquiring the SE.com domain name, as a direct upgrade from schneider-electric.com. With SE.com, Schneider Electric can create a much more succinct online brand for customers to interact with. The company has also moved its entire email system from schneider-electric.com to SE.com. This move will improve security and reduce data leaks and email drops that could have happened as a result of customers misspelling schneider-electric.com.

3. WE.com
Chinese company Weicai Technology dropped 8 million dollars to acquire the domain name We.com. I released the pricing details to the domain industry to record the second-highest publicly-disclosed two-letter .COM domain sale of the decade (2010-2019). WE.com is now used as the hub of a highly popular wealth management website. The acquisition was timely since it meant that The We Company had to settle on “we.co” as its official domain name.

These are just three examples of two-letter .COM domains that have been acquired and put to use by brands willing to invest significant amounts of money into their online identity.

Another means of getting a face-value appraisal for RH.com is to take a look at verified domain sales data.

Recent Sales

Below is a list of verified two-letter .COM domain sales from recent years. You can use this data to gauge the value of your own domain name:

TM.com – $1.25 million (2019)
IJ.com – $550,000 (2019)
RX.com – $1 million (2019)
OL.com – $900,000 (2019)
MK.com – $700,000 (2018)
FO.com – $510,000 (2018)
SW.com – $660,000 (2017)
HG.com – $3.77 million (2016)
DA.com – $650,000 (2016)
YK.com – $900,000 (2016)
LA.com – $1.2 million (2016)
TP.com – $929,000 (2016)
PX.com – $1 million (2015)
GJ.com – $694,095 (2015)
QT.com – $615,000 (2015)
QE.com – $554,000 (2015)
SX.com – $555,050 (2015)
WE.com – $8 million (2015)
RP.com – $575,000 (2015)
NL.com – $575,000 (2015)

Further Reading

I have performed a couple of interviews with the buyers of two high value two-letter .COM domain names for their respective companies. These represent real-world usage and give a clear idea as to why domains such as RH.com command such a high value. You can access the two interviews here (PX.com), and here (TN.com).

Conclusions

Working out the intrinsic value of the RH.com domain name (without any attached content, IP or other considerations) is a difficult process. Automated appraisals cannot be relied upon, and ultimately it comes down to the circumstances surrounding the acquisition or sale of the two-letter domain (with associated factors including motivation to buy or sell, the need for the domain, funding available, and current circumstances).

However, it can be easily proven that domains such as RH.com are highly desirable, and previous sales data indicates that the name would carry a six, seven, or low eight-figure valuation.

Do you own RH.com or a similar domain name? Do you have the budget to acquire a domain name such as RH.com? If you answer yes to either of these questions, you might benefit from speaking with a domain name broker. This article is purely research and I certainly don’t have any association with this name, but if you’re serious about buying or selling such a domain, speak with an expert who can advise you fully.