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Hello and Assalamo Alaikum,

One of my reader Sumit asked me how do I valuate and set an asking price for domains when I don't use any valuation tools like Estibot and others. I have also mentioned some factors which I don't actually consider while assessing domains.

It's an interesting question and many find it difficulty in setting up prices for their domains. Although I am not an expert or the domainer who mostly sell his domain in 5 and even 6 figures on regular basis. But if someone wants to know more as to how I operate my domain business, please continue reading.

When I was in initial stage of my domaining career, I did flipping and sold domains at sacrificing prices just in order to keep the cash flow going and must not stop buying and selling domains. But as I am quite settled now ALHUMDULLILAH, I can wait for the right buyer and play waiting game.

There are several factors in valuing my domains:

1) No urgent need of money. When you have good cash flow your sense of judgement gets change and you act accordingly. However, I have tried to get maximum out of every domain sale I can no matter what my financial position was. I admit of selling domains at lower price than I thought of their actual value but it was done purposely for the need of cash flow. Now when there is no urgency of funds, I feel I am on top of enduser and can demand what I actually want for every domain.

2) There are hundreds of domain I hold which are upgrades for companies but I have categorized several domains for which I have one specific buyer to target when selling. I won't mention any specific domain but you may check out the domain investment page to get an idea. When you target 1 specific buyer, you limit yourself selling the domain and requires lot of patience and wait for that buyer to knock your door first. But I tell you... the reward is really fruitful and sometimes life changer. But in such cases, I don't buy domains with having only one potential buyer on internet.

3) When targeting of one specific buyer, that company will definitely be having good backing of funds. If a company has got series of funding in millions of dollars, why cannot they spend a peanut of share on buying/upgrading their domain to a better one. The more time that buyer will delay, the more he has to pay because I have to consider many factors in increasing the price as the time goes by. My investment which is stuck for long time, aftermarket from where I buy domains is as always going up so my price will be adjusted accordingly.

4) That particular market is huge and has lot of potential. I don't need of going into much detail about this because we as domainers know which niche has what kind of potential. But this is one of the factor I take into consideration for valuing my domains.

5) I don't give much importance to exact searches and CPC of Google Keyword Planner. For most of domain acquisitions, I don't even check these metrics. Also the length of domain doesn't matter unless it has meaning, demand and potential. The more shorter, the better. Doesn't mean longer in length domains are not valuable but surely less desirable than shorter names like 2L, domains.

6) Number of existing companies. I take this metric into consideration when buying and pricing my domains. I normally check when that domain is possibility of an upgrade. I use NameDroppers and ZfBot for this purpose. When selling any 4L .com, I don't see much benefit of checking existing companies through ND or ZfBot but Google is more helpful in such type of domains.

7) Registered in other extensions. Let's take an example of one of my domain ( I prefer checking/considering NameDroppers or ZfBot and Google and rest of the factors I have mentioned in the entire post but just looking if BeeGreen is registered in other extensions doesn't bother me at all. Yes, there is possibility of .net owner to buy the .com version but never sticking solely to this option of checking if BeeGreen is registered in lower extensions and decide how much to ask while selling the domain. The result will always be poor and I will leave plenty of money on table.

8) Language. Most of the domains in my portfolio consists of English words excluding and brandable domains. I do have domains in many different languages but I try to buy good meaningful and very common words used in that language or has decent as well as common meaning in English language. I used decent because I don't buy domains which has relationship with alcohol/adult/gambling. It's difficult to sell less popular language spoken domain even in .com as compare to selling some German, Spanish, Italian words in .com. You have to see the domain you own is in which language and how much popular and common that word is in that language. Sometimes people prefer to have .de (German country code) domain than to have .com. Doesn't mean you should not buy German language domains in .com but research is must. But if you seek my suggestion, I would strongly say to stick with English words in .com and diversify your portfolio once you have gathered good quality along with decent number of domains.

9) Comparable sales. Oh well... This is seriously useless for me for setting up an asking price for my domains. I do keep checking DnJournal weekly sales report and NameBio but that doesn't mean I set asking prices after going through any comparable sales. Checking those sites keep me updated and helps me while buying domains so that I must not overpay it. But when I valuate my domains, I never check comparable sales because every domain is different. Demand of buyer is different, situation of seller is different and many other factors are involved.

10) The most important factor in my opinion is that buyer have to have the biggest idea for using the domain they are going to acquire from me. You will hear often from domainers who say that your domain is worth what the buyer is willing to pay. In my opinion, that's utter nonsense and that person giving such shitty advice have no idea about this business. I always valuate and decide the asking price to whatever I want and sell at my own price. If the buyer doesn't want at that price, he must not have the big idea for my domain. I simply pass which is difficult but that's the way you should deal if you are to make fortune and change your life for betterment.

I would love to see what others think about my way and curious to know how you guys valuate and price your domains ?
Pennies? Let's not be that dramatic! :P

When you turn down significant offers it sometimes feels like lunacy, and is only admired once a negotiation actually turns into a sale.

I have turned down significant offers, and I know they will be coming back, and I agree it is certainly an exercise in patience and staying relatively firm.

Now I say "relatively" because with every negotiation it's almost expected that a buyer sets the price low, and a seller sets the price high. Somewhere in the middle the twain shall meet and everyone will be 'okay' with the outcome.

This is where 'a domain is worth what someone will pay for it' emerges.

Rick may have priced a nnn at 4mil and then taken high 6 figures, only to have the buyer then list it for twice that amount based on the 4mil asking price and a very volatile market pricing months ago.

Sure you can set a price, but that value will only actualize once it's paid for.

In the end, it was worth what someone was willing to pay for it.

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 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 need it
-- >then he is the right buyer

if not
you tell him he is not the right buyer

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.
A domain IS worth whatever someone is willing to pay for it. wasn't worth $1,000,000 but it sold for that. 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 When CNN came calling it was easy to ask $750,000 for when you don't need the money even though was probably barely worth $50,000.

Justin Matmor

Top Contributor
There are thousands of endusers who offers in 3 figs for and those are not well educated about the value of or have no budget to afford the name. That doesn't mean if 10 endusers knock my door and say my is worth max $500 so I go and sell to the person gave me the highest offer. For me, there is no set market for or any other domains when it comes to selling. But when I am buying from aftermarket, I will definitely be paying within the current market value.

Also I would take 12K for 2 domains rather than selling 20 domains for 1K each. With all that, I don't consider myself as flipper.
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.

in your example
the buyer was willing to pay 10k

but thats not the value of the domain,
as even the same buyer was changing his mind to 28k

so the idea of "a domain is worth what a buyer is willing to pay for it"
really is completely BS

"a domain is worth what a buyer is willing to pay for it"
is a lazy attitude

learn to negotiate better
do your homework

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.
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.
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.

Looks like you rely pricing on the $$ your domain makes per year through parking?
Yes thats the value I watch the most. Other factors i consider also, but not as much

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.