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Don't Make The Same Mistake I Made as a Beginner!

Located in Domain Beginners, started by Zarkoza, Oct 18, 2020 at 5:35 PM

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  1. Zarkoza

    Zarkoza Upgraded Member Gold Account

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    I'm a beginner still, and when I first discovered the wonderful world of Domaining, I became super interested, not really because I was expecting to make hundreds of thousands or millions of dollars, but simply because it is a way to make any money at all. When you first start out, you hear crazy stories about how people bought a domain for 8 or 10 dollars, and sold it for like 5 thousand dollars or more.

    So there you are, you sit there at your computer thinking up domain ideas that you think could be used in the future by some startup or something. You use Godaddy's Automated Appraisal Tool and you find a domain appraised at like $1,900 and you think WOW, this seems really valuable! I would be stupid not to buy this one! And then you buy it. You set the price to some extremely high price like $3000. You call Godaddy, they tell you that "yeah the average sale price of domains is between $1,000 and $5,000 so your prices are pretty good" and then You call Godaddy again because you have some weird suspicion that your domain is actually priced way too high and that you have decided to make your pricing way lower than the estimated value, and Godaddy Reps tell you, "actually you have a lot of really good domains here and it would be a shame if you sold them for only a couple hundred bucks" and you are recommended to shoot high rather than below the estimated value of the domain because there's going to be someone out there who will buy your domain and sell it for way higher." You get off the phone feeling confident and reassured that you do have a chance at selling your high priced domain. LOL

    But then you come across domaining forums and learning new things about Appraisals and you start learn about how Automated Appraisal tools are NOT reliable in helping you determining what your domain is actually worth and how getting a human to appraise your domain is way better if you have the money. What was a real Eye opener was getting a actual human at Afternic to appraise one of my domains. I thought I was sitting on a domain that was estimated at $1,239 , and going by Godaddy's info about the average sell price of domains, my expectations were high, so I tried to shoot higher for my listing, which I thought I could sell for way higher but under $5k. BUT when I got the Afternic Appraisal results back for my domain name, I was actually surprised. Here I had a short domain name I thought would be perfect for like, a future beauty or fashion startup and it was only estimated to be valued at $400. hmmmm

    Now do NOT get me wrong! I actually wasn't mad at this appraisal result, just surprised, when your expectations are set quite high, of course this would be shocking, but this actually just confirmed that even as a beginner, before I had called Godaddy to tell them about my idea to price way lower than the estimated value of the domains I bought, I was actually on the right track. I would actually be so happy with just $400 or even $100 for any of my domains.

    If you're still reading, I'm sorry I'm not the best writer, but I've only doing this domaining thing for about a week or two, I've learned my lesson to not rely on Godaddy Appraisal tool to determine whether or not I should buy a domain, and not to take Godaddy's rep's advice completely.

    I've decided I'm just gonna revert back to my original idea and list all of my domains for up to $600 or less.
    I do have some domains that I think are worth a thousand or a couple of thousand dollars, but I don't have the money to get them all appraised right now, I'm not gonna use Robo Appraisals anymore. I'll just sit on the ones I really think I could sell for more until I can get a human to appraise them. but the rest I think I should price rather cheap. Who knows, someone might think they can sell it for $10,000 and I would say to that great, thanks for the $100 and good luck! I don't know what kind of connections you have, but good luck! And I would mean it with great scinerity.

    I did buy the domain discount club membership for a year, I'm on Afternic, Godaddy, Sedo, and Domain Agents, so I think if I price low under $1K like was I going to do, I think I have a chance at actually making a few sales.

    But yeah, I wish I would have found NamePros.com before I had actually bought 130 domains. Thanks to everyone providing their knowledge and experience. It seems like you all wish the best for everyone and want everyone to succeed. It's great to come across a community that's willing to help and give knowledge to people to help them succeed!
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. alcy

    alcy Top Contributor VIP

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    forget apprisl tools.
    do not even waste thought about it

    for all the rest...do not worry we all start same way thinking domins are quick easy cash... and those of us who persist and learn beyond initial losses all discover it is extremely hard long work... just as everything else in life...before u see some reward.

    there are no get rich quick domainers there are just those who keep going even harder after initial losses and those who do not...
     
  3. NickB

    NickB Wales.org VIP

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    Have you cross checked your domains with similar ones that have sold and been reported on Namebio?


    This will help you price your domains accordingly......
     
  4. Zarkoza

    Zarkoza Upgraded Member Gold Account

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    I actually didn't know about NameBio until I discovered this forum. I bought the month long Domainer subscription yesterday and canceled it so I don't get charged again. So I have a month to use that NameBio tool.

    With Godaddy Appraisal Tool, when you type in a domain idea, it also shows comparable domains that have sold, so I would also use that to help determine if I it would be a good idea to buy the domain. But when you go to the WHOIS you find out it was created like in 2000 or something. It doesn't tell you WHEN it sold though like NameBio does which to me is valuable info in my opinion. It's nice to see what not only the domains that are similar to yours sold for, but ALSO the date when they sold.

    I'm new to NameBio, but I imagine that if you have a two word domain, and you type in the key words of your domain into NameBio and you see that the keywords in your domains have been selling a lot recently within the month or past few months on average for like $1,000, I imagine that you're sitting on a domain that you could sell for that much? Maybe I'm using the tool wrong. If you can give me some insight or correct my thought so far on it, that would be greatly appreciated!
     
    Last edited: Oct 18, 2020 at 6:12 PM
  5. NickB

    NickB Wales.org VIP

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    Yeah you can search for the same keyword as a prefix or suffix, letter patterns for shorter domain ( CVCVC or CVCV etc etc), by date (historical data over a number of years can show consistent demand for keywords, which is good), highest price and also look at the average sales price for all similar domains - so it does help a lot in that regards

    When I first started I got burnt big time in the exact same way you did.... we were not the first and won't be last who get done over by these appraisal tools, but at least it teaches us a lesson.......
     
    Last edited: Oct 18, 2020 at 6:23 PM
  6. Zarkoza

    Zarkoza Upgraded Member Gold Account

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    Thank you! Yeah, I'm gonna be a lot more careful going forward. I'm glad I'm learning so much about what NOT to do so earlier on. If only I would have found this foruma lot sooner I could have gotten a refund from Godaddy for some of the domains I bought. I bought a bunch in one day and then I spent like a week figuring out what I wanted to price them all at and then when I found this forum it was too late. LOL 🤦🏾‍♂️

    Buying domains is kind of addictive when your expectations are set high thinking you could potentially make thousands on them lmao.
     
  7. passini

    passini Established Member ★★★★★★★★★★

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    Don't trust too much automatic appraisal tools. They are coded in different ways and each one uses different points to value a name.

    You can have a look at the best ones just to have an idea. I use nameworth, godaddy's one and namebio/epik. But I do just out of curiosity, I don't base my purchases and pricing on them at all.

    I base my purchasing and pricing a little bit on the sales reported and much more on the similar names that are in the market right now. You are competing with them not with the sales of the past. IMHO
     
    Last edited: Oct 18, 2020 at 6:52 PM

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