How high would a reseller pay?

[startupsold]

Is it possible for a domainer to pay high-5 fig for a domain knowing the value of that domain is 10 times more than that or do we have a threshold/limit in the reseller market?

 

[Kate]

There is no threshold, but not all domainers have deep pockets.
Domains are routinely bought by investors at end user price (are overpaid). Then it's difficult to resell for a good profit. So it happens that domains are sold at a loss when the owner needs cash or want to get rid of an asset (example: zimbabwe.com).

 

[copper]

I've seen domain sold for $40K in 12 minutes at BIN price.
So, It's certainly possible if the domain is TRULY a bargain as you said 1/10 the value.
However, who's value is it? Buyers' value or seller's value?

 

[randomo]

I see you just joined last month. Most "newbies" greatly overvalue their domains.

In another thread, you said that uarelive.com has an "estimated price" of $55,000; other members in that thread said it had no value. That's the kind of knowledge you can pick up if you spend a lot of time reading threads on domain forums like this one.

 

[Jawed]

Is it possible for a domainer to pay high-5 fig for a domain knowing the value of that domain is 10 times more than that or do we have a threshold/limit in the reseller market?

There is no such knowledge or science in existence!

 

[alien51]

Experience will be your best teacher.

Give yourself like 1, or 2, or 5 years, then see how many domains you can sell for 5 to 6 figures each.

 

[biggie]

Is it possible for a domainer to pay high-5 fig for a domain knowing the value of that domain is 10 times more than that or do we have a threshold/limit in the reseller market?

:talk:

Hi

if i read between lines of your thoughts

seems like you've equated reseller, with cheap, aka lowballer


as if one who buys and then resells, won't spend over a certain amount for a domain.

that train of thought, has kept many newbies from buying higher quality names, priced above reseller price guides.

the effects of that rationale or lack of, prompts a newb to only bid as high or less, than previous names in similar categories sold for.

since they have no "tenured' exp. to rely on, they fear the thought of overpaying for a domain, so they pass.

the savvy investor will snag it, add 5 > 10 yrs renewal fee and bank it for later.

the newb only see today's value, they don't even consider what it will be worth in the future.

flip, flip, flip is all they know.

 

[FPForum]

A domain is worth whatever someone is willing to pay for it. Resellers with deep pockets will gladly pay the asking price for a domain if they are confident they can get more for it. The biggest problem that I see is too many newbies trying to ask $5000 or even $10000 for a crappy domain that no one is going to even pay $100 for.

My advice..If you're a newbie don't go by what some online appraisal site tells you!

 

[GiftedDomains]

Is it possible for a domainer to pay high-5 fig for a domain knowing the value of that domain is 10 times more than that or do we have a threshold/limit in the reseller market?

If i had a domain from which i knew for sure that "the value of that domain is 10 times more than" what a domainer is willing to pay, i would keep it and sell it for the 10 times higher price :D

 

[Domainate.com]

Take away circumstances for a moment (i.e. a domainer simply not having the money or access to it to make such a purchase). Let's say they do have comfortable access to the money and are absolutely sure about the value. Usually the domainer who doesn't make that buy is the domainer that ultimately doesn't last very long in this business. Truly undeniable opportunities don't last very long.

I passed up some deals early on because I simply didn't have the money, but some of those times I did seriously consider taking out loans or doing a group buy. One of those was a case where a domain that I believe was bought for at or a little over $100,000 sold for a million not that much later. So yea - the 10x scenario can even happen on domains at that level.

That said, each time I've spent the most I've ever spent on a domain, I've made profit. One of those times it was 20 times what I paid. If you take the time to truly learn about domains and how to sell them, there's nothing wrong with taking calculated risks, and the domainers that do it are the ones that generally have long-term success.

 

[ProSence]

The thing is liquidity!

And only short, one word domains with top extensions are liquid, I would say.

 

[Jawed]

One of those was a case where a domain that I believe was bought for at or a little over $100,000 sold for a million not that much later. So yea - the 10x scenario can even happen on domains at that level.

These are rare cases; hence not a viable business model.

 

[biggie]

The thing is liquidity!

And only short, one word domains with top extensions are liquid, I would say.

:talk:


never say, "only" when speaking of liquidity as it refers to domain names.

as there are many names in a variety of categories other than 1 worders, that could move today, could have moved yesterday, and may move tommorrow... if price were not/is not an issue.