analysis I don't understand domain names

[70ym]

I always confuse about the price of domain names. For example,
I just bought a domain in a cheap price, but the previous owners bought it for a very high price in backorder auction.
kmcw.com 875 USD 2022-02-02 NameJet
It just a common 4L in my opinion, how can it auction to $875 in backorder auction. If it worth so much, why the owner sell it for a low price just within a year.

 

[biggie]

If it worth so much, why the owner sell it for a low price just within a year.

Hi

because i only needed $50 more to buy another domain, which is worth much more.
also, the $875 will be expensed against income for that year.
so, no biggie for you to ponder.

imo...

 

[chenzen]

I always confuse about the price of domain names. For example,
I just bought a domain in a cheap price, but the previous owners bought it for a very high price in backorder auction.
kmcw.com 875 USD 2022-02-02 NameJet
It just a common 4L in my opinion, how can it auction to $875 in backorder auction. If it worth so much, why the owner sell it for a low price just within a year.

It's possible that the "buyer" actually didn't pay for the domain and the sale never happened.
I "sold" a domain for 1k+ on Sedo which was recorded by namebio, but the buyer didn't actually pay. I ended up selling the domain for less than $300 a few months later.

 

[biggie]

It's possible that the "buyer" actually didn't pay for the domain and the sale never happened.

Hi

that's a good possibility as well

imo...

 

[70ym]

It's possible that the "buyer" actually didn't pay for the domain and the sale never happened.
I "sold" a domain for 1k+ on Sedo which was recorded by namebio, but the buyer didn't actually pay. I ended up selling the domain for less than $300 a few months later.
Show attachment 230268

kmcw is sold through backorder auction.
And the buyer buy it via backorder agent.
Which means the buyer actually pay for it.

 

[mdrn]

Sometimes domainers buy domains with a certain enduser in mind (not recommended) and they try to outbound that enduser and get nowhere or they're not interested, then want to offload the name.

Another reason could be for liquidity, like they may need money immediately which is why they sell it low.

And like @biggie mentioned, sometimes dominers try to offload domains in a quick manner to buy another domain they found at a great price.

Also they may need to pay for some renewals soon and need money, you never know.

There are (too) many factors and I think it never will be clear unless you speak to the owner directly ofc.

 

[Leo2k]

Probably he had another domain to buy which he felt worth more than this domain & for which he needed some money. So he might have sold it for whatever best price he got for this and used that money to buy the other domain / or buy some new costlier tld (.ai) domain names.

 

[scithe]

I always confuse about the price of domain names. For example,
I just bought a domain in a cheap price, but the previous owners bought it for a very high price in backorder auction.
kmcw .com 875 USD 2022-02-02 NameJet
It just a common 4L in my opinion, how can it auction to $875 in backorder auction. If it worth so much, why the owner sell it for a low price just within a year.

So if you don't mind me asking, what price did you acquire KMCW for? I don't see too many 4L .coms going for under $100 these days.