Sometimes you can catch domains like this, especially when they were deleted and re-registered, as opposed to true hang-reg domains that have not been registered in years. In some cases the retail value to the right business can be huge. I've had 2 sales in this range over the last 12 months (PlanToGrow(dot)com - Purchased in 2016 for $19.47 closeout and sold at $24,500 in March, fluux(dot)com - Purchased in 2017 for $130 and sold for $15,000 in August 2019). I also have a 3rd deal that is about to close for a $29,500 domain, that I purchased for $21 in 2007.
The key is, don't just trust any valuation without your own thinking as being a large part of the decision. NameWorth will find data points that resemble the same indicators in other domains from this price range. You should evaluate what kind of business model would buy this domain, and why the value might be so high in the valuation.
This is one of the main reasons that I've included all the detail below the valuations on the NameWorth site. Because you need to have the information to decide which
one of the 4 scenarios applies to your domain valued in the $10,000-$29,999 range:
- The domain has sufficient demand and the valuation is in-the-ballpark **.
- The domain has no current use and the result is a false-positive (most will be corrected by version 2.5), so the actual value could be significantly lower.
- The domain is a misspelling or foreign word, that may or may not have value. You would need to decide.
- For some reason, the domain is being undervalued either due to a word parsing issue or because there is an "exact match domain" value that is not yet being use in the valuation (this will be added by version 3.0, currently at 2.0).
Scenario 1. The domain has sufficient demand and the valuation is in-the-ballpark **.
Here are some good examples of this.
Let's take a look at the results for
fluux(dot)com. If you enlarge the results, you can see that all the green highlighted domains registered and "Similar Active Sites" would most likely want to own fluux(dot)com, so I'd say this was pretty accurate, and it was fairly easy to come to an agreement at $15,000.
Next, let's take a look at another good example. For
PlanToGrow(dot)com, you can see similar results. There are 3 active websites that I highlighted in green, which match the other extensions taken, and the domain is also taken in 3 other extensions. The additional domain GamePlanToGrow(dot)com was highlighted in orange, because it's not truly a direct match to our name. So if you see something like this, where most of the results are matching the "brand" of our domain, then I'd also say the estimate is likely pretty accurate.
Scenario 2. The domain has no current use and the result is a false-positive, so the actual value could be significantly lower.
A great example of a false positive is
Onyol(dot)com. It's a 5 character domain I purchased, because I see continued demand for brandables. If you look at the results, I've highlighted all of the entries in red that are not true matches, which in this case...was all of the suggestions. This is clearly a false-positive. I don't believe the $24,500 price is in the realm of possibility, but I did buy the domain and put a price of $7,450 on the domain. I sold the domain usist(dot)com at a very similar price in the last 12 months.
Scenario 3. The domain is a misspelling or foreign word, that may or may not have value. You would need to decide.
I've had a very good example of this earlier this month. I received an offer of $5k for
zakup(dot)com. The word means "lease" translated from Ukranian and "purchase" when translated from Polish. The word has a high amount of use and is registered in 25 extensions. There are at least 10 other similar active websites or domains found. This case is really rare, where NameWorth comes back with a valuation of $94,500. If it was an English word, or even an English slang term or brand, this price would likely be very accurate (For example, aptum(dot)com shows as $85k, and Mike Mann sold it last year for around $94k), but most of the current sites for zakup tend to be from Russia, Ukraine, and Poland. So what is the value now? This takes a lot of research and analysis to figure out the right answer. In my case, I'm not reducing the price from the current $24,500.
Scenario 4. For some reason, the domain is being undervalued either due to a word parsing issue or because there is an "exact match domain" value that is not yet being use in the valuation (this will be added by version 3.0, currently at 2.0).
Rick's domain
ACRepair(dot)com is a great example for this scenario. This is the most rare situation that occurs. At times, when a domain is spelled in multiple different ways like this name (A/C repair, AC repair, Air Conditioning Repair, etc) yet there is a high commercial usability and value for the domain, the value may be understated. As you can see in the green highlights there are many sites (yet most low traffic), for ACRepair, 28 other extensions taken, and over 1,800 estimated similar domains. This issue is pretty clear-cut and will be corrected in version 3.0. Most likely the domain will end up at $500k or more. If the domain is valued at $750k or more, that would still make it in-the-ballpark ** of the actual sales price.
Summary
I appreciate you using NameWorth. Personally I use the tool everyday. By version 3.0, most of the false positives will be removed and it will become more and more accurate in time, but it is still important for us to do a little research to ensure there is adequate demand for each domain we purchase. Especially if we expect the domain to sell in the Tier 1 or Tier 2 price range. If we are honest about the data that we're seeing, you'll be able to easily classify your valuation in 1 of the 4 scenarios above. If you do that, you'll make a much more informed purchase (or sale).
** In-the-ballpark is what I've come to define as when the sold price of the domain is somewhere between half of the NameWorth value, to double the NameWorth value. The point of valuations are to give you a starting point and you can adjust that up or down depending on the current market for the domain, demand, and as well as the buyer's/seller's needs.
