NameSilo

“How much is my domain name worth?” is the wrong question to ask

Labeled as discuss in General Domain Discussion, started by J4wd, Mar 8, 2021

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  1. J4wd

    J4wd PeerIdeas.com Gold Account

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    This question is asked hundreds of times a day across dozens of domainer forums, here and elsewhere.

    We battle with this question every time we place a BIN figure on a listing. We’re constantly questioning whether we are leaving money on the table.

    Could I ask for more? Should I ask for less? How long should I wait?

    And yet there is no single right answer. If there were, we wouldn’t be here, we’d be off making sales.

    When buying a house, you can value a property based on the sales price of its closest neighbours, with a small adjustment based on number of bedrooms and bathrooms.

    You can’t do that with domains at all. Almi.com is worth far more than Anmi.com even though they’re only one letter apart. The same applies to .com vs .net, .cc vs io, CCTLD vs GTLD.

    The other challenge is that the value of names changes continuously. NameBio lists NFT.com under the category of Gardening (with 100% confidence).

    GoDaddy GoValue estimates it as being worth “More than $25,000” while Estibot pegs it at $58,000.

    My point is that we all get things wrong. Nobody has the answer to the question, “How much is my domain name worth?” and likely nobody ever will.

    So let’s perhaps reframe the question instead. Perhaps instead of trying to draw a line in the sand once and never again, we should think of our investments in more fluid terms:

    “How much is my domain name worth *today*?”

    While it’s a simple change, it carries with it the spirit of a market that is in constant motion. We accept that there is no single fixed price, along with the reality that we need to test our assumptions regularly.

    What sold last year may not sell this year. What didn’t sell last year may be this year’s hottest new trend.

    Unfortunately this realisation disproportionately impacts those with larger domain portfolios. The more domains you own, the more difficult and time consuming it is to revalue them from time to time.

    Perhaps there is a simple solution though. One area, currently unexplored, is peer reviews. I’ve seen it happen a few times on the forums here, where one member will pick out the names they like from a peer’s list. Not to buy, but just to offer helpful feedback.

    And let’s face it, domainers enjoy looking through obscure lists of names to find a few gems. It’s what we do most days when we scour the drops.

    I’d like to see more of this - domainers helping each other out.

    So let me start: send me a link to your portfolio and I’ll pick out the 10 domains I think will sell best. I’ll also pick out the 10 I think will not sell. Then you do the same for me.

    In my opinion this can only be a win-win.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. DuDD

    DuDD Established Member

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    nice article
    let me start it
    ktrb..com
    wcmk..
    xlhc..
    nblk
    nkwp
    yzkn
     
  3. J4wd

    J4wd PeerIdeas.com Gold Account

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    Are all of these 4 letter .com?
     
  4. DuDD

    DuDD Established Member

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    yes
     
  5. J4wd

    J4wd PeerIdeas.com Gold Account

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    Cool, keep them all! There’s a finite pool of 4L .com and the value will grow over time. Consider some outbound sales activity to find suitable prospects.
     
  6. Altoz

    Altoz Established Member

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    Nice post. Let's see, here some of mine. (it will be interesting) ;)

    Duralyt.com
    Aregaz.com
    Gyroset.com
    Agazy.com
    Altosi.com
    Altoz.com
    Atyli.com
    Iridoro.com
    Bravisi.com
    Gioori.com
    Koato.com
    Likre.com
    Wrian.com
    Yotli.com
    ColibriAir.com

    TIA
     
  7. J4wd

    J4wd PeerIdeas.com Gold Account

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    I like these a lot:

    - Gyroset.com
    - Altoz.com
    - Yotli.com

    Not bad:

    - Duralyt.com
    - Iridoro.com

    The rest I’m not mad about. Two syllable words are best as brandable IMO. Also, names that aren’t easy to pronounce or don’t pass the radio test are unlikely to be picked.

    Nice choices though.
     
  8. Altoz

    Altoz Established Member

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    Thank you for your time and opinion, the next question is the pricing ;)
    BTW: I did place in one domain that I sold already for xx,xxxx $ even if the appraiser was almost nothing. (Altoz.com)
    Just trying to show how difficult is to establish the right price.
     
  9. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    "worth today"
    really isn't applicable for future forward domains...
    as it's best use is for domains acquired in the past.

    imo....
     
  10. J4wd

    J4wd PeerIdeas.com Gold Account

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    Not quite following you. Could you expand on this idea please?
     
  11. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    if, you have a domain, that is related to tech product, which hasn't been released to public or may not even be conceived yet, then that would be a future forward name.

    as such, what it's worth today, isn't applicable, because value won't come until it's viable product.

    on the back end,
    for names acquired years ago, then "what is it worth today" is applicable, because some time has passed for that domain, since it's original acquisition.
    that too, is where the appeal for "aged" domains come into play.

    imo....
     
  12. J4wd

    J4wd PeerIdeas.com Gold Account

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    Right, makes sense. The point was that valuations change over time so it’s important to keep asking that question about all the domains in your portfolio.

    Thanks for the feedback.
     
  13. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    you can keep asking,
    but worth, may not be same as closing sale price.

    as it can sell, for more than it's really worth
    or sell for less, than it's really worth.

    so, worth...is also tied to knowledge and experience.
    and sometimes it is associated with a persona` >
    as in "who owns it", can make it seem like, it's worth more.

    imo...
     
  14. ajenipa

    ajenipa Established Member

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    Probefy
    Eraxer
    Altpreneur
    TutorBlock
     
  15. J4wd

    J4wd PeerIdeas.com Gold Account

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    I like Altpreneur and TutorBlock out of the four.
     
  16. ajenipa

    ajenipa Established Member

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    .
     
    Last edited: Mar 30, 2021
  17. ajenipa

    ajenipa Established Member

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    Thanks
     
  18. loredan

    loredan Top Contributor VIP ★★★★★★★★★★

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    Would love to check out the "dozens of domainer forums" you posted about.
    Do you have any links to all these dozens and dozens?
     
  19. J4wd

    J4wd PeerIdeas.com Gold Account

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    Some are Slack groups, Subreddits, Telegram groups, Whatsapp groups. And yes, there are dozens. I am a member of many of them.
     
  20. Steven McEvoy

    Steven McEvoy Top Contributor VIP

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    The value of a domain is only worth what someone is willing to buy it for... I mean take at look at

    bdgrt//com a 5 letter random domain, I would of paid about $500 maybe more depending on how much my start up is growing. However people would never reg it but I notice it was dropping so backordered it and got it for $25. 😜

    bdgrt is valuable to me but not others.


    Domainers control the market, I can guarantee you those 4L that sold for $xxxxx couple of years ago are still parked today because they were domainers who bought them.

    Same with 4L market value is literally controlled by resellers they’re only selling about $100-$150 for random letters when really the value is worthless but because you can’t hand reg them anymore they gain value but only to collectors. You will just be trading the same type of domains over and over here at namepros until one day you pick a 4 leaf clover and some person sees value in that domain.

    I see it all the time, someone lists a 4L here for $1 start auction it sells for $86 literally 3 months later the person who bought it puts it up for the same auction and sells it lol it’s a freaking circle.


    look at these brandable domains marketplaces like SH BB BP you guys are paying about $20 over hand reg (reseller value) because some random person who thinks oh this domain could sale and it seems brandable I’ll accept it in my marketplace it gains $20? Gtfoh. Hahahah
     
  21. J4wd

    J4wd PeerIdeas.com Gold Account

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    Absolutely! But since we need to pick a BIN figure when listing our domains, we have to start from somewhere. Do you price it high and wait, or price it to sell and possibly leave money on the table?

    You're not wrong. According to Boston Consulting Group, the secondary market is worth almost as much as the primary market. See


    Their words: "nearly half of the dollars end-users spent buying new domains go to domainers."

    Domains sold here (and on other domainer forums) are priced at wholesale, not retail. So that 4L you buy for $86 is meant to sell at $$$$ to a retail buyer. If it ends up being sold here again, then someone is losing out.
     
  22. Lox

    Lox _____ VIP Gold Account

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    There are not so many reasons why Client report is created with specific metrics in mind then published online to be viewed as a case report. The purpose of this document is an attempt to set the stage for something after.

    the secondary market is "worth" / capital (it can be sold)
    vs
    the secondary market "value" / liquidity (how much people want it)

    Don't get confused just because they sound alike.

    The data is incomplete.

    Regards
     
    Last edited: Mar 31, 2021

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