domains Then and Now 8-7-20 Handful of $6k to $8k end user sales expire Vacation.mobi, SequoiaClub.com

I really don't understand a lot of domain names. Why do they sell for so much

Mytz.com said:

I really don't understand a lot of domain names. Why do they sell for so much

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Well, that's a million dollar question, isn't it?

pb said:

Well, that's a million dollar question, isn't it?

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And that's coming from the guy who trades in 4L names.
If anyone is going to strike it rich, @Mytz would be the one.

Mytz.com said:

I really don't understand a lot of domain names. Why do they sell for so much

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There is a great randomness to domain name sales.

Mytz.com said:

I really don't understand a lot of domain names. Why do they sell for so much

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I think this question deserves a good answer.

First is the obvious. To some people money is not an issue, its like trying to understand why some people will spend 5000 on a handbag and 50,000 on a watch and 350,000 on a car.

Second is the more common situation. When you see an enduser buying a name there is a story of hopes and dreams attached to it.

It usually starts with an idea, they get very worked up, within minutes they think its a million dollar idea, a billion dollar idea, Microsoft might acquire them or maybe they will make so much money they will acquire Microsoft.

They mention it to friends and family, some of them agree its the best idea ever, they get even more worked up, they are seeing dollar signs everywhere.

Now they need a domain, they want something good, they start looking and everything normal is taken. They finally find one that everyone around them can't believe is even for sale, fear kicks in (especially if the domain has a buy now option) what if someone steals my idea, what if someone buys the name, FAST get the credit card out, call a friend to borrow money, call family members, QUICK before he loses billions of dollars because someone else will buy the name.

They lose their mind, they rush and call the domain broker, the broker acts shocked, "are you serious that the domain is for sale, hold on, I have to double check" he comes back to the phone "I guess you were right, why the seller is only looking for 12,500 for yuguvqqxoy.com is a mystery but maybe he fell on hard times".

The guy feels that finally luck is on his side, the stars and the universe have all aligned just for him, even the broker was shocked the domain is for sale.

He pays for the name but gets very suspicious when the name takes more than 5 minutes to be in his account. What if the broker is trying to steal my idea? Finally the name arrives to their account and the real disaster kicks in.

The following few months or years they will live and life of pain and suffering chasing the billion dollar idea. They will get screwed by logo designers, developers, patent lawyers, SEO guys, social media influencers, 5 dollar junk gig peddlers and a slew of other vultures waiting to take everything he and anyone around him has.

To break the cycle he completely lets go of the fairytales and the domain is returned to its maker.