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How do I valuate domains and set an asking price

Labeled as guide in Domain Industry News started by AbdulBasit.com, Jun 9, 2016.

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  1. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    To keep things short, I would say that:

    "In the beginning, the domain is worth what seller wants to sell at"
    "In the end, the domain is worth what seller finally sold at"

    To conclude, seller always have the upper hand.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    the question is :

    are you negotiating in a position of strength or weekness

    and the next question is:
    who is your buyer
    and why does he want that domain

    if he doesn't want the domain
    but needs it
    -- >then he is the right buyer

    if not
    you tell him he is not the right buyer
     
  3. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    One has to negotiate by keeping himself in a strong position in front of buyer even if he isn't at that time.

    For me, I don't care who is my buyer and I quote according to the potential of domain with my knowledge, research and financial position. But when I am targeting only 1 buyer for my domain, I make up my mind to wait for lifetime and see when I will be rewarded.
     
  4. domainrz

    domainrz ... VIP

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    Wa Alaikkum Assalam Wa Rahmathullahi Wabarkath

    Nice Read Abdul Basit!!!
    "I am quite settled now ALHUMDULLILAH"
    Angels surround gatherings where Allah is remembered
     
  5. hookbox

    hookbox Top Member VIP

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    A domain IS worth whatever someone is willing to pay for it. Dudu.com wasn't worth $1,000,000 but it sold for that. Evora.com wasn't worth $94,000 but it sold for that. There are thousands of examples of names that sold for much more than what the investor would have originally wanted for the domain.

    Rick Schwartz would always ask the potential buyer what concept do you have for the domain. If they didn't reveal the concept he would not give them the time of day. Why did he do that? Because that way he could place a value on the domain not by what he thinks it's worth but what he thinks it's worth to them.

    By the way Rick Schwartz had only 18 sales in 18 years because he was living off of $100,000 a month from Porno.com. When CNN came calling it was easy to ask $750,000 for iReport.com when you don't need the money even though iReport.com was probably barely worth $50,000.
     
  6. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    Many thanks brother :)
     
  7. DNScholar

    DNScholar DNScholar.com

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  8. Altrell

    Altrell Altrell Owner

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    Exactly. The end price is what you are willing to accept and what the buyer is willing to pay. That is the true value of the domain at that moment. All else is simply speculation.
     
  9. jcondura

    jcondura Member

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  10. Justin Matmor

    Justin Matmor Top Member VIP

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    You don't sell to "any" end user, you sell to the "right" end user. In the end, the "right" end user dictates the price.
     
  11. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    Time will teach you, don't worry ;)
     
  12. guru4444

    guru4444 Established Member

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  13. 4better

    4better Established Domainer VIP

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    Quite enlightening. More knowledge, more power.
     
  14. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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  15. elevator

    elevator DnCombo.com VIP

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    When I 'm confortable with the price and it may not be my wish, but for the purpose of selling when in need of cash; it is not a bad thing to accept what a buyer is willing to pay. I disagreed to accept that as a lazy habit. IMO.
     
  16. SamDam

    SamDam Established Member

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  17. namerav

    namerav Top Member VIP ★★★★★★★★★★

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  18. domeen

    domeen Top Member VIP

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    I have too many domains. I keep it simple. I have 4 price groups:

    1). $1998- basically domains don’t make any money parking. But are sellable. About %30 of my portfolio
    2). $4888 little better ones. Some make money parking, but not reg fee in year.
    3). $8888 domains that make at least reg fee on year.
    4). $30000- some special ones are 50k. my best, and all 4 letter .coms. About 15% of my portfolio.
     
  19. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    Looks like you rely pricing on the $$ your domain makes per year through parking?
     
  20. domeen

    domeen Top Member VIP

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    Yes thats the value I watch the most. Other factors i consider also, but not as much
     
  21. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    I don't like it that way. I've sold plenty of names for 4-5 figures which made less than $1 per year through parking so depending heavily on that factor doesn't make sense to me.
     

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