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discuss Hierarchy of domains and investment advices

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At any point of time there are levels of domains according to the value
When I started domaining there were only 10 million domains at .com
Let us imagine 10 levels of domains according to the value

1. Domain value more than million
2.500k - million
2. 200k- 500k
3. 50k - 200k
4. 10k- 50k
5. 5k- 10k
6. 1000- 5k
7. 500- 1000
8. 250-500
9. 50- 250
10. 0 - 50

Only 0.05 % of all registered names would worth more than a million. At that old time, out of 10 millions , only 5000 name were worth more than million
At today stats with more than 150 million dot com, around 75000 would worth more than a million

If you bought a domain level 10. 15 years ago at 50$ , it should worth now 750$ and its level should advance to level 7.

If you buy a domain today at 50$ . And after few years number of registered names at dot com stayed at 150 million. Do not expect to sell it for more than 50$

Also Value can even drop if number of total registered dot coms goes down.
For example you bought now 500$ name and dot com registrations become 100 million. You expect selling price to be 350$

You can apply this rule especially to liquid names and every rule has exception

You can evaluate all extensions according to this rule as a general rule but each rule has exceptions
.co or .com
.co is worth 1/75 of .com price
.net is worth 1/10 of .com price


If you expect dot com registrations to reach 300 million after a year . Go a head and buy everything because that may double all the prices of today market value. And your today domain level may advance to a higher level.

These are just thoughts but every domain is unique and you should research well before making any investment decisions

Good luck to all of you and thanks for reading
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Interesting "thoughts"!
Your theory (thoughts) seems valid..
 
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Formula doesn’t take into account future trends, current trends and hot ticket names today which weren’t known 15 years ago. So for hot trending names this formula is meaningless.

There are trends to come that we don’t know now. It’s not a cut and dry sort of thing broken down only by mathematics. Your domain is worth what someone is willing to pay.
 
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Also you tend to keep domains at higher levels and sell lower levels although you would make more money out of lower ones in the future

I remember a domainer sold tons of 5N.com just because he owns few 3N.com

At that point of time 5N.com was level 10. Nowadays I think it is level 6.
 
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Your domain is worth what someone is willing to pay.

This formula can apply only to end user price

In the resellers world , all domainers are using estibot and other automatic formulas and then they make offer which is less than these formulas to make sure they make a profit
 
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Theories, rules, tools, automated appraisals and opinions from experts are very limited in their ability to be exact in domaining.

Domains are a frontier that can not be pinpointed by algorithms, comparables and data.

For those reasons domaining is fun.
 
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Some interesting thoughts, @gotasale. Thank you for sharing them. One could argue that more registrations push domains up in price to higher levels, since good combinations not available to hand register, although it might be that all the competing domainers would keep prices reduced. It is a hard question.

It is not the same thing, but I am currently looking at a year of data to see how many sales fall in different price categories. I hope to have it done and ready to share on NPs in a week or two.

I was interested in your rule like .co at 1/75 and .net at 1/10 on average. Is there data you used for that. I mean clearly they depend on the type of name, but still interesting to know what averages are. Did you use the same 1/10 for .org?

Bob
 
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Some interesting thoughts, @gotasale.
I was interested in your rule like .co at 1/75 and .net at 1/10 on average. Is there data you used for that. I mean clearly they depend on the type of name, but still interesting to know what averages are. Did you use the same 1/10 for .org?

Bob

Comparison of total registrations
Total .co registered are 2 million
Total .net registered are 14 million
Total .com registered are 150 million

.co/.com 2/150 ===> 1/75
.co is a strong extension and registrar is not pushing the number of registrations by cheap offers and fake registrations numbers
2 million registered because of real demand and interest
They even make it difficult to buy dropped names by making them premiums
 
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New development or technology can easily push a domain high up and equally far down.
 
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New development or technology can easily push a domain high up and equally far down.

I think that affects price of only a small part of names not every name registered at dot com
 
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Mere increase of total names registered does not automatically increase the number of million dollar names.

Someone paying $1MM or even mid-high 6 figures, expects to make hundreds of thousands back every year from boosting marketing efforts etc. And the number of names that have that quality don't increase only because people keep registering mediocre names.

It is still the same pool of names that grows VERY slowly, much slower than overall registrations. It includes top 2000 or so dictionary words in English, top 200 or so words in other top languages (like travel in Spanish or Chinese), all LL.coms, All NN and some NNN.coms, some LLL.coms. Rare word+word combo in .com also can pull it off, as well as few of ngtld word.word combos.

And that is it. That pool grows maybe by 1-2% a year to reflect new tech/industy/trends, plus global economy/population growth, even if the number of overall domains regged grows by 10% a year (or whatever that growth is now)
 
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Mere increase of total names registered does not automatically increase the number of million dollar names.

Someone paying $1MM or even mid-high 6 figures, expects to make hundreds of thousands back every year from boosting marketing efforts etc. And the number of names that have that quality don't increase only because people keep registering mediocre names.

It is still the same pool of names that grows VERY slowly, much slower than overall registrations. It includes top 2000 or so dictionary words in English, top 200 or so words in other top languages (like travel in Spanish or Chinese), all LL.coms, All NN and some NNN.coms, some LLL.coms. Rare word+word combo in .com also can pull it off, as well as few of ngtld word.word combos.

And that is it. That pool grows maybe by 1-2% a year to reflect new tech/industy/trends, plus global economy/population growth, even if the number of overall domains regged grows by 10% a year (or whatever that growth is now)

There is a problem with knowing million $$ names. They do not sell often so this pool is very difficult to assess

But I think people buying million $ names don't need our hierarchy or an investment advice 😊😆
 
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I think that affects price of only a small part of names not every name registered at dot com
That's what am saying, not necessarily all dot com domains. Especially good niche domains like what is happening in the cannabis space.
 
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