How To Calculate my Domain Name’s Value

neckozenica · Dec 8, 2017

hi,

domain name is worth whatever a buyer is willing to pay for it... how I will check what is my Domain Name’s Value??

Joe N · Dec 11, 2017

biggie said:
who told you that?

and which buyer, determines the domains' value?
does the first buyer who offers $10 set value

or the person they resell it to, for $2,500, set the value?

and if that same name is sold again for $25,000 two years later, then what was, or is, it's true worth?

think.... don't just repeat and proceed on the notion.

just saying

imo...

The market determines the price by what it's willing to pay. Would love to hear a counter argument to this.

DzAH · Dec 11, 2017

Seller determines the price.

It is not a counter argument, it is a fact

Seller set price (and can freely change it at will). Buyer agree or disagree. They BOTH make a deal, or not, by agreement, or disagreement on price, set by the seller. It's all up to the seller.

More generally speaking.. If sellers decides they really don't want to sell then supply goes down. Values of domains goes up, but number of sales goes down. Btw seller/nations etc. does this to drive prices up (like oil prices)

Obviously, if "the market" determines (and I agree with you), market isn't only buyers, but sellers also. The all/both contribute. Therefor it's true when people say sellers determines, and it's also true when people say buyers determines.

That's how I see it.

Joe Nichols said:
Would love to hear a counter argument to this.

me too !

Joe N · Dec 11, 2017

DzAH said:
Seller determines the price.

It is not a counter argument, it is a fact

Seller set price (and can freely change it at will). Buyer agree or disagree. They BOTH make a deal, or not, by agreement, or disagreement on price, set by the seller. It's all up to the seller.

More generally speaking.. If sellers decides they really don't want to sell then supply goes down. Values of domains goes up, but number of sales goes down. Btw seller/nations etc. does this to drive prices up (like oil prices)

Obviously, if "the market" determines (and I agree with you), market isn't only buyers, but sellers also. The all/both contribute. Therefor it's true when people say sellers determines, and it's also true when people say buyers determines.

That's how I see it.

me too !

There you go. Well said.

frank-germany · Dec 12, 2017

Joe Nichols said:
The market determines the price by what it's willing to pay. Would love to hear a counter argument to this.

I tell you what:
if you don't sell at the price the other party is offering
there is no way that the other party can set the price

Joe N · Dec 12, 2017

frank-germany said:
I tell you what:
if you don't sell at the price the other party is offering
there is no way that the other party can set the price

That's a bit vague...

maxtorz · Dec 12, 2017

"a domain name is worth what the market is willing to pay for it"
"The market determines the price by what it's willing to pay."
"use estibot to value domains"
"You should wait/ask for the buyer to make an offer first"
"A penny saved it's a penny earned"

All of the above is garbage nonsense!!!
You(the seller) should always price Your domain and You the seller need to be able to support your valuation when the buyer asks for discounts and makes lowball offers!

Waiting for the market or some external source to dictate your pricing is silly.
I ALWAYS want to be transparent in ALL my deals!
"This is the price for this domain. There are many factors and criteria to my valuation. Let's discuss"
If the buyer doesn't want to discuss and offers me $100 on a domain I quoted $6000 then they are not serious. I will followup with them and try to reach them on the phone. For me this is not a game, I am serious and I expect the same in return.
I got $100 offer, $300 offer and $900 "our final offer" for S/I/M/P/L/I/I dot com and sold for $4000 months latter to the same buyer;
I got $200 offer for HempS/Y/N/E/R/G/Y.com and sold for $4500 a few weeks latter;
NO I was NOT going to drop my price to $XXX for any buyer!
I don't discount more then 20% my quoted PRICE EVER, and that's only if I absolutely have too!
The buyers, the market, Estibot, the economy will never set the price for my domains....

Joe N · Dec 12, 2017

maxtorz said:
"a domain name is worth what the market is willing to pay for it"
"The market determines the price by what it's willing to pay."
"use estibot to value domains"
"You should wait/ask for the buyer to make an offer first"
"A penny saved it's a penny earned"

All of the above is garbage nonsense!!!
You(the seller) should always price Your domain and You the seller need to be able to support your valuation when the buyer asks for discounts and makes lowball offers!

Waiting for the market or some external source to dictate your pricing is silly.
I ALWAYS want to be transparent in ALL my deals!
"This is the price for this domain. There are many factors and criteria to my valuation. Let's discuss"
If the buyer doesn't want to discuss and offers me $100 on a domain I quoted $6000 then they are not serious. I will followup with them and try to reach them on the phone. For me this is not a game, I am serious and I expect the same in return.
I got $100 offer, $300 offer and $900 "our final offer" for S/I/M/P/L/I/I dot com and sold for $4000 months latter to the same buyer;
I got $200 offer for HempS/Y/N/E/R/G/Y.com and sold for $4500 a few weeks latter;
NO I was NOT going to drop my price to $XXX for any buyer!
I don't discount more then 20% my quoted PRICE EVER, and that's only if I absolutely have too!
The buyers, the market, Estibot, the economy will never set the price for my domains....

No need to insult everyone. You're saying the same thing as everyone else... that the buyer paid you what they were willing to pay you... And you took what you were willing to take... That's the market, my friend.

You have a good handle on how to price your domains and negotiate with buyers. That's great. But at the end of the day, you're not selling your names for anymore than a buyer is willing to pay.

Joe N · Dec 12, 2017

I think there are some key elements that also aren't being discussed here.

Some of the more veteran members who have chimed in have given us some decent insights about aggressive and informed pricing, and about patience and having confidence in your asking amount.

I think these are great things to work toward, but it's also important to acknowledge that very few domainers start out with the skills or confidence to price and negotiate in a way that will eliminate (or greatly reduce) the consumer surplus from each sale. There are many reasons for this:

Lack of familiarity with current market prices
Lack of awareness of what factors make a name valuable
Lack of quality names
Lack of negotiating experience
Small or non-existent network of potential buyers
No awareness of how to find buyers

Those of you who are more experienced aren't faced with these barriers, and are able to get much closer to obtaining the best possible prices for your names. But those of us who are new need to build these skills through experimentation and research. For this reason, I would say that as a new domainer, OP should be less concerned with how to price his names, and more concerned with how to sell them for a profit.

Over time, this will allow a seller to:

Gain confidence and;
Gain familiarity with market prices;
Improve name selection and negotiation skills; and
Ultimately develop the instincts and skills necessary to reduce, and eventually eliminate the above barriers.

All that to say that a domain's value is a very fluid thing, and a large part of it is dependant on your own experience and abilities. Develop those first, and then worry about the nuance of how to find the perfect price for your names.

frank-germany · Dec 12, 2017

Joe Nichols said:
That's a bit vague...

let get a little more congrete then
today if we as domain owners would all add a zero to the BIN price
prices would be tenfold from now on

Joe N · Dec 12, 2017

frank-germany said:
let get a little more congrete then
today if we as domain owners would all add a zero to the BIN price
prices would be tenfold from now on

Do you know that for sure?

Of course average asking prices would see a massive increase, but how can you know that aftermarket sales would continue on par? They could completely drop off the map!

Maybe new registrations would increase as a result.

Maybe ngTLD take-up would increase dramatically.

Maybe the entire "middle class" of domain buyers/sellers would cease to exist, leaving only room for the Mike Manns and Rick Schwartzs to make aftermarket sales.

maxtorz · Dec 12, 2017

Joe Nichols said:
No need to insult everyone. You're saying the same thing as everyone else... that the buyer paid you what they were willing to pay you... And you took what you were willing to take... That's the market, my friend.

You have a good handle on how to price your domains and negotiate with buyers. That's great. But at the end of the day, you're not selling your names for anymore than a buyer is willing to pay.

Hey Joe, my post and every post I put out on this forum is intended to help others.
If my grit and commitment to domain investing comes of as insulting, I take full responsibility for that.
I am not saying what everyone else is saying.

Am I the only one that gets $100, $200, and $300 offers and "$xxx is our final offer"?
95% of ALL inbound offers I got this year are $100-$300 offers. So the market says I should sell my names at an average price of $200 and be happy with it because that's what the market dictates.

I guess I could, but we live in a world that is fueled by money and capital gains and I am shooting for financial freedom.

Joe N · Dec 12, 2017

maxtorz said:
Hey Joe, my post and every post I put out on this forum is intended to help others.
If my grit and commitment to domain investing comes of as insulting, I take full responsibility for that.
I am not saying what everyone else is saying.

Am I the only one that gets $100, $200, and $300 offers and "$xxx is our final offer"?
95% of ALL inbound offers I got this year are $100-$300 offers. So the market says I should sell my names at an average price of $200 and be happy with it because that's what the market dictates.

I guess I could, but we live in a world that is fueled by money and capital gains and I am shooting for financial freedom.

But that's not the market. Those are potential buyers. And those offers are not what the buyers are willing to pay, they are a starting point. It's up to you to find the middle ground that makes you both happy.

Another poster summarized quite nicely how market pricing is determined.

And your grit and commitment is totally fine. It was calling everyone's opinions garbage that seemed a bit over-the-top and insulting.

biggie · Dec 12, 2017

the statement:

a domain is worth what a buyer is willing to pay.

is false

why?

because a domain may have value to more than one buyer

and.....

a domain may have value, above what buyers are willing to pay and therefore, it may never get resold.

ie: a domain currently earning ppc, where the income is more, than the "multiples" being offered for it.

imo....

Joe N · Dec 12, 2017

biggie said:
the statement:

a domain is worth what a buyer is willing to pay.

is false

why?

because a domain may have value to more than one buyer

and.....

a domain may have value, above what buyers are willing to pay and therefore, it may never get resold.

ie: a domain currently earning ppc, where the income is more, than the "multiples" being offered for it.

imo....

Fair points, but I think OP was looking for help with establishing a reasonable asking price.

Following your logic, there's no way to actually establish a value for anything because there "could" always be someone else who is willing to pay more for any given product or service. You're not wrong, but the point is not very helpful when it comes to real world application.

biggie · Dec 12, 2017

Joe Nichols said:
Fair points, but I think OP was looking for help with establishing a reasonable asking price.

Following your logic, there's no way to actually establish a value for anything because there "could" always be someone else who is willing to pay more for any given product or service. You're not wrong, but the point is not very helpful when it comes to real world application.

the OP started his question, by stating a "fallacy" as fact.

as if he believes it to be true, when it is not.

my post was an effort to bring clarity to those who are uncertain, confused or have simply been misled.

and though my post may not have helped "you" specifically, does not mean it wasn't helpful.

real world applications should start from truth, not with fake news or propaganda

imo....

Joe N · Dec 12, 2017

biggie said:
the OP started his question, by stating a "fallacy" as fact.

as if he believes it to be true, when it is not.

my post was an effort to bring clarity to those who are uncertain, confused or have simply been misled.

and though my post may not have helped "you" specifically, does not mean it wasn't helpful.

real world applications should start from truth, not with fake news or propaganda

imo....

I agree with the sentiment, but your post was no more truthful than anyone else's. The whole notion of domain value is subjective.

DzAH · Dec 12, 2017

Some of you seem to confuse the meaning "a domain is worth what a buyer is willing to pay".

This does NOT mean: "if a buyer is willing to pay €5 for a domain, then the domain has a value of €5"

the meaning of the phrase is NOT one random buyer, but "the market".

It's like.. if you got 1 bitcoin and I want to buy it for €5, it doesn't mean it's worth €5... it's "the market" that decide..

so.. "the market" decide price, and "the market" is both seller(s) and buyer(s) combined.

What one single player in the market says usually means close to nothing.

DzAH · Dec 12, 2017

It doesn't help either when people confuse price and value. Those two are not the same, yet we tend to mingle them together as one.

frank-germany · Dec 12, 2017

Joe Nichols said:
I think there are some key elements that also aren't being discussed here.

Some of the more veteran members who have chimed in have given us some decent insights about aggressive and informed pricing, and about patience and having confidence in your asking amount.

I think these are great things to work toward, but it's also important to acknowledge that very few domainers start out with the skills or confidence to price and negotiate in a way that will eliminate (or greatly reduce) the consumer surplus from each sale. There are many reasons for this:

Lack of familiarity with current market prices

Lack of awareness of what factors make a name valuable

Lack of quality names

Lack of negotiating experience

Small or non-existent network of potential buyers

No awareness of how to find buyers

Those of you who are more experienced aren't faced with these barriers, and are able to get much closer to obtaining the best possible prices for your names. But those of us who are new need to build these skills through experimentation and research. For this reason, I would say that as a new domainer, OP should be less concerned with how to price his names, and more concerned with how to sell them for a profit.

Over time, this will allow a seller to:

Gain confidence and;

Gain familiarity with market prices;

Improve name selection and negotiation skills; and

Ultimately develop the instincts and skills necessary to reduce, and eventually eliminate the above barriers.

All that to say that a domain's value is a very fluid thing, and a large part of it is dependant on your own experience and abilities. Develop those first, and then worry about the nuance of how to find the perfect price for your names.

the short cut is:
to pretent you are already in the to be achieved position
feel it
act like it

frank-germany · Dec 12, 2017

Joe Nichols said:
Do you know that for sure?

Of course average asking prices would see a massive increase, but how can you know that aftermarket sales would continue on par? They could completely drop off the map!

Maybe new registrations would increase as a result.

Maybe ngTLD take-up would increase dramatically.

Maybe the entire "middle class" of domain buyers/sellers would cease to exist, leaving only room for the Mike Manns and Rick Schwartzs to make aftermarket sales.

its always the strong versus the week

frank-germany · Dec 12, 2017

maxtorz said:
Hey Joe, my post and every post I put out on this forum is intended to help others.
If my grit and commitment to domain investing comes of as insulting, I take full responsibility for that.
I am not saying what everyone else is saying.

Am I the only one that gets $100, $200, and $300 offers and "$xxx is our final offer"?
95% of ALL inbound offers I got this year are $100-$300 offers. So the market says I should sell my names at an average price of $200 and be happy with it because that's what the market dictates.

I guess I could, but we live in a world that is fueled by money and capital gains and I am shooting for financial freedom.

I can't see any insultation in your post

frank-germany · Dec 12, 2017

Joe Nichols said:
It's up to you to find the middle ground that makes you both happy.

if the buyer is unhappy
he will simply disappear

It's not my responsibility to make the buyer happy
he has to take care for himself

frank-germany · Dec 12, 2017

Joe Nichols said:
I agree with the sentiment, but your post was no more truthful than anyone else's. The whole notion of domain value is subjective.

that why I prefer my subjective view of the value

neckozenica · Dec 12, 2017

hi, thanks for answers ...

but I'm still confused.... there is no some rule to determining the real value?

DzAH · Dec 12, 2017

neckozenica said:
there is no some rule to determining the real value?

probably not.. No one here can really define "the true value" of a domain.

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