Domain with 4 valuations...

[mrcurly]

Hi,

I am trying to get my head around a broker who does newsletters, a broker from a big auction company, a premium domain company and someone who has already made millions in the domain game.

I have been using my linkedin account to make contacts etc... and sell domains and it is working kinda well for me. I do have a domain ( I will not mention due to spam ) that I have contacted various well known brokers and a domain millionaire, each one has given me their valuation -

My Domain - It's a .com

Broker 1 = $25,000
Broker 2 = $3,500
Broker 3 = $600
Already domain millionaire = $100,000 +

Why do some domains vary depending on different brokers?

Broker 1 works for a well established site and has made big sales in the past and has great domains on their books.

Broker 2 runs a newsletter and has great contacts through Linkedin and has made some pretty decent sales etc...

Broker 3 works for one of the biggest sites and has over $1 million + in sales a week

Aleady domain millionaire......well, has made it!

How can 1 domain be so varied in value?

If anyone would like to know the domain in question so that they can respond better to my question and help me understand then please pm me but I would appreciate if you did not mention the domain on your post as the domain is in brokers hands at the minute.

Thanks

Stu

 

[johname]

I would be more surprise if they all agreed lol

Did you ask the $600 person in particular why his/her appraisal was so low?

 

[mrcurly]

Did you ask the $600 person in particular why his/her appraisal was so low?

No, I never do as it then becomes an argument and trying to convince a broker the domain is worth more is like walking in quicksand.

 

[Name Trader]

Very true.

I would discount the millionaire's valuation. He can wait for the right buyer to come along. However long it takes. Besides he has a reputation to keep up. Us mere mortals usually can't do that.

 

[johname]

Now that the name been pm to me ( i didnt ask to see it)

Its a plural that causing the variation.

Goodluck

 

[mrcurly]

Very true.

I would discount the millionaire's valuation. He can wait for the right buyer to come along. However long it takes. Besides he has a reputation to keep up. Us mere mortals usually can't do that.

lol, I did straight away.

Now that the name been pm to me ( i didnt ask to see it)

Its a plural that causing the variation.

Goodluck

Please do not see this as spam, I just wanted to cut short lots of questions and dragging this thread on longer than we have to.

Thanks

Stu

 

[DU]

How hard will they work and what terms? Some make calls, some just list on mostwanteddomains, some pump a newsletter, some spam a forum.

They dont do it for you. They do it for themselves.

Examples

1) Wont bother for lower value. 20% of 25k is 5k. Will use contacts and then if not sold will just hold rights to sell for 6 months

2) Quicker sale. Quick $. Dump on a newsletter mostly well contacted resellers. Its money and good ROI for the guy and I dont have to spend energy negotiating.

3) Not enough meat to make it worthwhile so go away ? Spam forum..I dont care if it undersells.maybe my partner buys it.

4) With money comes better negotiating power. Would you turn down $25k. He might.

Your name is probably being marketed already if 1 is the closest to the truth. I'd be very surprised if you picked up a 100K name for less than 50k as you are talking short generic value.

Given the range it could be a future trend name and the range is:

Now.
Moderate Traction of high exact search name.
Aggressive valuation on keyword growth in future.
Based on crazy projections of value because of hype.

Or could be language / industry knowledge. Some might know porn and some big pharma.

FINALLY, some millionaires are rich but still idiots.

 

[DU]

My Post is all Opinion. All Speculative.
And will have 4 opinions of value too.
I look forward to Fonzie and Aggros opinion.

 

[Kate]

The millionaire will probably hold out for the very best offer, that could take 15 years to materialize.
This is a best case scenario, that in fact may never come true. The millionaire will probably die before selling half (or even a tenth) of his portfolio. That doesn't change a thing to his bottom line.

On the other hand, the broker will proactively market the domain to qualified end users.
The conditions are quite different: a sale must be achieved within a shorter time frame: the broker needs to make a profit now or very soon, not in 10 years if everything goes well.
You, the buyer, are also looking for a fast sale, because you want cash now. That's why you retained the services of a broker: to speed up a sale.

Also, you lose the upper hand when you are the one who's soliciting. When the end users come to you, they need your domain, while you didn't beg for anything. When you come to them, you need them more then they need your domain...

It also depends on the niche of the domain, some people may see value in certain niches they are more familiar with.

 

[biggie]

quality sells itself, no broker needed


imo...