debate Why does a domain sell? Why are they profitable investments?

Domain names are dreams. If an end user thinks your name will help him to achieve his dream, then he will buy it from you.

An alternative reason relates to speculators. If someone thinks you have underpriced it, and he can sell it on for a profit, then he will buy it from you.

You own it, I want it

Simple, to the point

jbg777 said:

Can anyone explain why a domain sells?

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Because most of the time buyers aren’t that smart. That would make sellers lucky.

Happy Newer Year

obocar said:

Because most of the time buyers aren’t that smart. That would make sellers lucky.

Happy Newer Year

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I have to disagree with that. I think my buyers are smart, and they can spot a bargain. I seem to consistently undervalue my names.

Just like my domain name PinkStore.com is going to sell because:
Of the price. I put No Reserve.
It has sold before.
It has good Estibot value.
It was registered almost 20 years ago.
It is two word domain with meaning.
Someone smart can build a business on it.
It has natural type-in traffic, unique visitors.
It makes parking income.
It’s a good catchy domain name, etc, etc, etc...

So many reasons it would be hard to list them all. Some want a domain for their business, some want one for investment, some want one for personal reasons. They sell because someone wants them for a particular reason...

jbg777 said:

Can anyone explain why a domain sells?

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People desire to establish an online presence, helps with branding or it is considered a good investment

1. Domain is damn good
2. Illusion involved (probability, daydreams, visions, sale pitch, scam...etc)

Supply and Demand some names have a lot more demand than others but it is very simple. If someone wants the name they will buy it.

There are many reasons and many factors that help in making someone want to buy a name. Some people may think it is catchy, others may be looking at the domain stats like search volume etc.

- Will

Perhaps stating the obvious, but for a domain name to sell at least one business/person/organization must view it as quality. The quality may mean different things - respect, elegance, catchiness, simplicity, etc. Ultimately they need to want to be associated with your name to want it (and then you need to offer it at a price they regard as appropriate). Like artwork, it will go for a better price if there are multiple parties that view it as quality.

This refers to end users. I agree that other domain investors buy a domain because they think they can sell it for more; simply that really.

When there are no suitable alternatives available for regfee...

Branding and prestige. Why do big fashion brands open stores in expensive districts? They may sell their product everywhere. The location earns you popularity and prestige like good domain names. So buyers do the math.

Only one concept that summarize all:

B R A N D A B I L I T Y

Very few domain registrations are "investments", almost all of them are speculations in my opinion. If they were considered as investments, there would be more interest in monetisation, and other revenue from domain portfolio holdings.

Domains sell because it's part of an infinitely complex domain marketplace spanning many forums/marketplaces/websites where demand meets supply.
Everything is governed by the market. Even things that you would not think, like relationships.
Domains are interesting because unlike other products every domain is different so there is no centralized price for them.

Everyone want to establish a business online with a beautiful domain name and domain not just domain it's also a company brand name.