How To Calculate my Domain Name’s Value

[neckozenica]

hi,

domain name is worth whatever a buyer is willing to pay for it... how I will check what is my Domain Name’s Value??

 

[Joe N]

the OP started his question, by stating a "fallacy" as fact.

as if he believes it to be true, when it is not.

my post was an effort to bring clarity to those who are uncertain, confused or have simply been misled.

and though my post may not have helped "you" specifically, does not mean it wasn't helpful.

real world applications should start from truth, not with fake news or propaganda

imo....

I agree with the sentiment, but your post was no more truthful than anyone else's. The whole notion of domain value is subjective.

 

[DzAH]

Some of you seem to confuse the meaning "a domain is worth what a buyer is willing to pay".

This does NOT mean: "if a buyer is willing to pay €5 for a domain, then the domain has a value of €5"

the meaning of the phrase is NOT one random buyer, but "the market".

It's like.. if you got 1 bitcoin and I want to buy it for €5, it doesn't mean it's worth €5... it's "the market" that decide..

so.. "the market" decide price, and "the market" is both seller(s) and buyer(s) combined.

What one single player in the market says usually means close to nothing.

 

[DzAH]

It doesn't help either when people confuse price and value. Those two are not the same, yet we tend to mingle them together as one.

 

[frank-germany]

I think there are some key elements that also aren't being discussed here.

Some of the more veteran members who have chimed in have given us some decent insights about aggressive and informed pricing, and about patience and having confidence in your asking amount.

I think these are great things to work toward, but it's also important to acknowledge that very few domainers start out with the skills or confidence to price and negotiate in a way that will eliminate (or greatly reduce) the consumer surplus from each sale. There are many reasons for this:

1. Lack of familiarity with current market prices
2. Lack of awareness of what factors make a name valuable
3. Lack of quality names
4. Lack of negotiating experience
5. Small or non-existent network of potential buyers
6. No awareness of how to find buyers

Those of you who are more experienced aren't faced with these barriers, and are able to get much closer to obtaining the best possible prices for your names. But those of us who are new need to build these skills through experimentation and research. For this reason, I would say that as a new domainer, OP should be less concerned with how to price his names, and more concerned with how to sell them for a profit.

Over time, this will allow a seller to:

1. Gain confidence and;
2. Gain familiarity with market prices;
3. Improve name selection and negotiation skills; and
4. Ultimately develop the instincts and skills necessary to reduce, and eventually eliminate the above barriers.

All that to say that a domain's value is a very fluid thing, and a large part of it is dependant on your own experience and abilities. Develop those first, and then worry about the nuance of how to find the perfect price for your names.

the short cut is:
to pretent you are already in the to be achieved position
feel it
act like it

 

[frank-germany]

Do you know that for sure?

Of course average asking prices would see a massive increase, but how can you know that aftermarket sales would continue on par? They could completely drop off the map!

Maybe new registrations would increase as a result.

Maybe ngTLD take-up would increase dramatically.

Maybe the entire "middle class" of domain buyers/sellers would cease to exist, leaving only room for the Mike Manns and Rick Schwartzs to make aftermarket sales.

its always the strong versus the week

 

[frank-germany]

Hey Joe, my post and every post I put out on this forum is intended to help others.
If my grit and commitment to domain investing comes of as insulting, I take full responsibility for that.
I am not saying what everyone else is saying.

Am I the only one that gets $100, $200, and $300 offers and "$xxx is our final offer"?
95% of ALL inbound offers I got this year are $100-$300 offers. So the market says I should sell my names at an average price of $200 and be happy with it because that's what the market dictates.

I guess I could, but we live in a world that is fueled by money and capital gains and I am shooting for financial freedom.

I can't see any insultation in your post

 

[frank-germany]

It's up to you to find the middle ground that makes you both happy.

if the buyer is unhappy
he will simply disappear

It's not my responsibility to make the buyer happy
he has to take care for himself

 

[frank-germany]

I agree with the sentiment, but your post was no more truthful than anyone else's. The whole notion of domain value is subjective.

that why I prefer my subjective view of the value

 

[neckozenica]

hi, thanks for answers ...

but I'm still confused.... there is no some rule to determining the real value?

 

[DzAH]

there is no some rule to determining the real value?

probably not.. No one here can really define "the true value" of a domain.

 

[DzAH]

real value?

You yourself seem to run a server business. The price for your services is clear, but I wonder, what is their true value?

 

[frank-germany]

hi, thanks for answers ...

but I'm still confused.... there is no some rule to determining the real value?

there is no such thing as "real value"

 

[DzAH]

I think "real value" actually might exist.. however if it exist you have to know all the related variables + know the future + figure out how to calculate it.. lol.. which is of cause impossible. You basically have to be God to know.

 

[frank-germany]

I think "real value" actually might exist.. however if it exist you have to know all the related variables + know the future + figure out how to calculate it.. lol.. which is of cause impossible. You basically have to be God to know.

I'm out

 

[DzAH]

but I'm still confused.... there is no some rule to determining the real value?

rather then ask about "real value", you make it a lot easier asking "how do you figure out asking your prices for domains"

"Price" is very concrete and easy to grasp. "Value" is highly abstract, and truly a mystery

 

[DzAH]

I'm out

lol

 

[Joshua Harding]

lol

I just wrote a little post that will hopefully allow you to better understand the associated factors in (albeit roughly) determining the value of a domain name.

Find it here: https://www.availdomains.com/value-domain/

Let me know what you think, as it's still in rough form.

 

[lock]

My best tip is to look at domains actually sold. I list a bunch of tools and sites but nothing compares to real history. Take into account fads trends keywords extensions. You can also ask for an appraisal in the appraisal section of this site.
How long is a piece of string and how bad does someone want it all contribute to price.

 

[biggie]

"Price" is very concrete and easy to grasp. "Value" is highly abstract, and truly a mystery

I agree with that, from the perspective where:
some things, like domains may have sentimental value or potential value, above what it may be worth, as is.

imo...

 

[dordomai]

usually if it is hand-regged and you are just getting started and you have no idea what the value is, in 99% of cases it is regfee.

that is why the most profitable strategy if you do not know the value is not to register/buy the name.

in investing, not doing something can be sometimes be very effective.

of course everyone including myself does not do it that way when we start in this biz. Instead we go on a handregging spree and lose a lot of money in the process.