Does domain value depends more on buyer rather than its realistic value

[kathirvel]

Now - a - days we can see lot of ordinary domain names going for huge bucks.

But many high quality domain names going for less.,,,.

Is it depends more on the Buyer rather on the Domain name's realistic value?

By the time I m not able to post proofs of that.

Let me know your point of view regarding this & please add any proofs if you have?

Rgds,
Kathir.

 

[fonzie_007]

In the end, the value of a domain is what a person is willing to pay for it. If 99.9% of people in the world think the domain is worth only regfee, the domain still could be worth much higher than that if even 1 or 2 people would be willing to pay more than regfree for the name. Keep an eye on some of the sales reported in DN Journal. While many of the high selling domains do have intrinsic value, ultimately there are quite a few domains selling that the majority of people might not even register.

 

[gazzip]

In the end, the value of a domain is what a person is willing to pay for it. .

I Agree - That's what it comes down to in the end, there are no
"set in stone" rules to determine the value of a domain name - only guidelines.

If you offer to sell a domain name for $100 to someone who actually values it themselves as $20,000 then a $100 is what you'll get !! :td:

There are many domains that go for alot less & alot more than expected !

.

 

[SimpleDomaining]

i agree to but with a little bit different point. buyer usually not willing to pay high for crapy domains. If name sounds crapy to you, in most of cases it will sound crapy to buyer too and he will not pay high for it. But this does not mean, that domain, which sounds good to you, will sound good to buyer also.

 

[floatingworld]

buying and selling names is not a total crap-shoot. If google co did not exist would you not think 'google' was a 'crap' name?

 

[fonzie_007]

You mean if google did not exist, most people would think google.com was a crap name?

 

[sker]

In the end, the value of a domain is what a person is willing to pay for it. If 99.9% of people in the world think the domain is worth only regfee, the domain still could be worth much higher than that if even 1 or 2 people would be willing to pay more than regfree for the name.

Very true. Some paid appraisal or free appraisal unable to include the prospect of the most wanted minds.

Appraisals are just a guideline.

Another factor which i would like to draw from my own experience is the negotiation skill.
If Nestle interested in one of your name and ready to pay no matter what it takes, then they will invest. But they just don't offer your signed blank cheque.

Its all up to your own skill to inflate the price as much as you can.
Small players like us sometimes are more than happy with 500% ROI.

one classic example i could think of is PartnerCash.com, it was sold over 100k, it clearly shows that the previous owner is a big player.
Another latest example is Godfather.com, it went for dirt cheap 15k.

So, there is no hard and fast rule on the pricing of Virtual properties. There's long a way for the Virtualtors to understand the market unlike their counterpart on real estates. Realtors are trading in well regulated and matured market.

Having said that, we're the pioneers of virtual properties like our grandfathers on real properties about 100 yrs ago.

V

 

[cache]

the market for domain is not as liquid as stock market. So "time" is a big factor for non-liquid market: you can sell your domain at the true value (supply-demand value), but it may take longer with appropriate marketing to realize the value.

 

[EbookLover]

Does domain value depends more on buyer rather than its realistic value?

In many cases, yes. Domains, although often likened to offline real estate, are not wuite like offline real estate in that there are no standard valuation rules that are followed to calculate a value. That's the way I see it.

 

[SpareDomains]

gotta find that perfect end user, domain could be worth $100 to most people, but it could be worth 10,000 to 1 or 2 people, patience is key if looking to get top dollar if you think you have some good ones, I do agree though I have sold some very nice domains for low prices and some domains that I thought were nothing special have gone in the 1-2k range, never know exactly what a domain will be worth but if you can round up some end users in that field it will raise your odds of getting an above average price.

 

[VisualArtistFrankBonilla]

GreatDomains.com

I think this point is proven by www.GreatDomains.com . They have these hundreds of domain names priced from $5,000 to $750,000. But the prices mean nothing, if you can't find a buyer. I have sold a couple of domains I had listed on there for $5,000 plus for $xx! What GreatDomains values a domain at mean nothing.
So, yes, having a buyer, or end user is definately the most important part of a domains value.


Frank

 

[kathirvel]

Hi Anybody can provide a real world example?

It would nice if any of you can provide the example regarding recent domain name sales.

 

[gazzip]

It would nice if any of you can provide the example regarding recent domain name sales.

I think this would be near impossible to do as all sale prices are never going to get the same opinion on it's value from everyone.

Domaining is "very subjective".

.