question Strange appraisal question

This is impossible to tell without seeing the names. Even getting an evaluation of what a portfolio is worth to end-users is an impossible task. A lot of unforeseen factors come into play when dealing with end-users.

Who do you know that has a assumption crystal ball appraisal devise .

Its all worth what it sells for I would have thought .

gilescoley said:

This is impossible to tell without seeing the names. Even getting an evaluation of what a portfolio is worth to end-users is an impossible task. A lot of unforeseen factors come into play when dealing with end-users.

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Well... I did say: "Assuming that all of the domains in a portfolio have been accurately appraised"

My main question is regarding what percent is reasonable for investors/reseller once the value of the portfolio is assumed to be accurate or at least agreed upon.

tracey sclater said:

Who do you know that has a assumption crystal ball appraisal devise .

Its all worth what it sells for I would have thought .

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No crystal ball... but I've been evaluating domains for 10 years and find that by using similar historical sales, looking at search volume and CPC, and other similar metrics, plus just plain experience that one can often do a pretty good job with valuation.

This year alone I've sold many domains from this same portfolio at exactly the price I valued... and to me this shows that my prices are fairly accurate.

Totally my own opinion and experience of course.

I think you have answered your own question .

tracey sclater said:

I think you have answered your own question .

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Well not really... my question is that if we assume the value for End Users... what would an investor / reseller that was willing to buy the entire portfolio be expected to pay?

For example I read something along these lines in an article a while back.. and was hoping to get some expert opinions based on my scenario and personal thoughts and experiences:

Liquidation Pricing – 20% to 30% of retail price
Investor Pricing – 40% to 60% of retail price
Retail Pricing – 100% pricing, sold to the End User

As Gilescoley said show the names then you will get an idea . Good Luck .

YourBestTrader said:

Assuming that all of the domains in a portfolio have been accurately appraised and that the value of the portfolio is around $150,000.

This being the amount that you would receive if you sold every domain in the portfolio for full evaluation price to an end-user.

Now that said... how much would you expect to be able to sell the entire portfolio for if you wanted a quick sale of the entire portfolio to an investor / reseller?

I'm effectively in this position and I'm not sure what a reasonable amount to expect would be... any thoughts welcome.

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Automated appraisals are meaningless.

There are basically endless domains that are available to register and appraised at $2K+ on venues like Estibot and Godaddy.

Brad

YourBestTrader said:

Well not really... my question is that if we assume the value for End Users... what would an investor / reseller that was willing to buy the entire portfolio be expected to pay?

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Well, when you factor in the average sell through rate is around 1-2% for reasonably priced quality domains, then the percent an investor would pay would be a tiny fraction of the end user potential.

Brad

It also depends on the type of domain itself. The percent will be much higher for liquid domains than random brand types.

It is really an impossible question to answer.

Brad

bmugford said:

Automated appraisals are meaningless.

There are basically endless domains that are available to register and appraised at $2K+ on venues like Estibot and Godaddy.

Brad

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Who said anything about automated appraisals?

Also, my questions starts with the assumption that the domains have been accurately appraised.

Anyhow... thanks for trying.

YourBestTrader said:

Who said anything about automated appraisals?

Also, my questions starts with the assumption that the domains have been accurately appraised.

Anyhow... thanks for trying.

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So we are talking about your own appraisals, not automated appraisals.

What does "accurately appraised" mean exactly?

You would need to factor in the liquid value of a domain, if any, then the likelihood of a sale at a given price over a given time. Those are unknowns that can't be easily answered.

Sorry, there is no one size fits all answer to such a broad question.

In a real world example I would probably pay $200-$500 for a domain that I thought had a good chance to sell to an end user for $5K in 10 years.

Brad

Also, finding one buyer to buy an entire portfolio is a major challenge, especially if it is a potpourri of random types of domains. If they are all one category or type it would be a lot easier.

Brad

bmugford said:

So we are talking about your own appraisals, not automated appraisals.

What does "accurately appraised" mean exactly?

You would need to factor in the liquid value of a domain, if any, then the likelihood of a sale at a given price over a given time. Those are unknowns that can't be easily answered.

Sorry, there is no one size fits all answer to such a broad question.

In a real world example I would probably pay $200-$500 for a domain that I thought had a good chance to sell to an end user for $5K in 10 years.

Brad

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Now that's the kind of answer I was hoping for. So 5% to 10% is your own ratio based on the chances of a sale in your opinion. That helps.

Way too much focus in this thread on the original appraisals, when the scenario was painted as that being a given.

Thanks for your time Brad, at least that's something I can think about and work with.

Liquidation as a portfolio 0.1% - 1% or less ($150 - $1500) (or $0 if its all crap names)

Liquidation name by name - 1% - 5% of value

urlurl said:

Liquidation as a portfolio 0.1% - 1% or less ($150 - $1500) (or $0 if its all crap names)

Liquidation name by name - 1% - 5% of value

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Thanks for sharing your thoughts

How much do you need and when?
If you can wait for $150,000, then wait.
If you need $25,000 to $50,000 now, then sell now.
Just my take on it.

On the hypothetical, I would say between 1 - 5% if they are decent names.

Having said that, resellers will likely offer 1% or below when they consider the carrying cost, the fact that not all the names in the portfolio are equal and the fact that some names might never sell even though they are decent names.

It is, as others have said, almost impossible to answer as a generality. In a way, every time we have an offer we are balancing sure money today versus some small probability of a sale at higher value in possibly distant future. With a portfolio, it is sort of the same, but since your entire portfolio would probably never sell, it is even harder. If I was forced to place a number, i would say 1 to 2%. I think maybe a bit higher if the portfolio is structured, in sense of covering a handful of attractive niches as opposed to scatter, and if some of the domain names have reasonable registration periods already paid.
Bob

An additional important factor is going to be HOW MANY names make up your portfolio?

Do you have 15 names "appraised" at $10k each? Or do you have 1500 names "appraised" at $100 each?

TestCase said:

An additional important factor is going to be HOW MANY names make up your portfolio?

Do you have 15 names "appraised" at $10k each? Or do you have 1500 names "appraised" at $100 each?

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excellent observation and great point!

as, if you factor time, then the more names in the lot, the higher the cost to maintain the list over time.

that would definitely be something to consider in any bulk purchase.

imo...

YourBestTrader said:

Assuming that all of the domains in a portfolio have been accurately appraised and that the value of the portfolio is around $150,000.

This being the amount that you would receive if you sold every domain in the portfolio for full evaluation price to an end-user.

Now that said... how much would you expect to be able to sell the entire portfolio for if you wanted a quick sale of the entire portfolio to an investor / reseller?

I'm effectively in this position and I'm not sure what a reasonable amount to expect would be... any thoughts welcome.

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$1K USD

frank-germany said:

$1K USD

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Thanks for your input... I'll take it into consideration when I sell.