How Does EndUser Potential Effect Wholesale Value.

[Grrilla]

In appraising a name's wholesale value in the reseller's market, how much value do you ascribe to the potential the name has in the retail/enduser market? The type of name I am talking about, is a name that has no history, no traffic and requires a degree of branding.

The amount or degree of branding required is central to the question. For instance, a name associated w/ an idea that has is receiving alot of publicity is easier to brand than a similar term that is obscure. Resellers will see this and subsequently pay more at wholesale, based upon the perception of potential rather than what the "formula appraisal" is for that class of name.

To what degree should potential and ease of brandability effect wholesale appraisal values?

PS I'm talking about the more clearcut, high percentage names, and not borderline cases, here. These would be two-worders for the most part.

 

[RJ]

End user value and wholesale value are always connected. Buying names at reseller prices with intentions of selling to end users is a game of positive expectation. If you purchase five names at $50 each, hopefully you make at least one end user sale of $250+ to make a profit.

Are you more talking about potential "brand names", like ones that would have next to no reseller value but high end user potential?

 

[Grrilla]

I guess what I am trying to resolve, for myself, is a discrepency I see, in instances where names receivie high marks for retail potential and low marks at wholesale. ie wholesale reg fee- low $xx, right enduser $xxxx+. Logic would tell me that name marketers that see this potential, would also be willing to pay a higher premium for the name at wholesale.
Most of these names fall into the "requires branding" category, so I have equated ease of brandability w/ higher sales potential which (should) = higher value at the wholesale level. In short, I think that many appraisals automatically assign a reg fee or low appraisal value to a name that requires branding w/o making any distinctions regarding levels of potential, which would be reflected in the wholesale valuation.:gl:

 

[armstrong]

I think that names that are easier to find end-users for merit a lower reseller-to-enduser margin. Generally, these are product names with lots of overture or google advertisers, or websites obviously attempting SEO.

Conversely, names that require a lot of work to find end-users merit a large margin. A name like Saji.jp, for example, would probably interest the world's richest Japanese man (Nobutada Saji), who won't mind paying four figures. But how in the world will you reach him to catch his interest? An earnest effort to contact him directly will probably cost you a sizeable investment (for long distance calls, some nice clothes, perhaps even a trip to Japan).

So Saji.jp to me would be worth reg fee at the reseller level, and mid-$XXXX if sold to the end-user.

Am I making sense here?

 

[Anthony]

Simply put, certain people will likely pay a lot more money for names that are somehow important to them. That explains why those numbers are higher than reseller estimates.

The higher selling price point only comes if you can find the right end users, of course.