discuss I sold a domain for $XX,XXX now it’s parked

[xynames]

Just over two years ago I sold a dot com domain for low to mid five figures. A great sale. I've had many like it.

For this domain, the buyer, a Hollywood producer, didn’t even change name servers on the domain for a year. It kept resolving to my for sale PPC parking. At the time that I sold it I priced it very high because I was discussing the eponymous name with a celebrity and I assumed he’d want it. I was surprised when it sold suddenly without negotiation at the full BIN to someone entirely different.

I was even more surprised when a website eventually - a good year after I had sold the domain - popped up that had absolutely nothing to do with Hollywood or the movie industry. And recently the site disappeared and is now just a generic hosting “parked for Free” parked page.

How many domains have we sold that end up parked pages? I’ve seen this happen even to domains once sold for millions of dollars.

When I see things like this I realize that when I’m selling a domain I’m not necessarily selling a product or service but sometimes just therapy - telling the buyers what they want to hear to rejuvenate their lives with new hope, with a new business venture. These people don’t really always want a domain - they want therapy. This therapy is often what some of the best domain salesmen are able to provide to sell even garbage domains for thousands of dollars.

Yes I can justify the value of my domains in many ways, such as with comparative closed sales and other comparable domains being offered for sale, but in the end I think it often does come down to convincing a buyer that what you have will cure whatever ails the buyer’s life and business.

 

[vravis9]

All things won't work as planned...all planned don't come to execution...

But you are correct most names get the buyer because they listened what they wanted from us...

Hopes and possibilities of near future is one thing and false hopes is totally different...

Therapy is such a funny way to describe...maybe this is one sort of impulsive purchase.

Thanks,
Ravi

 

[vikki88]

Insightful post!

 

[BaileyUK]

I'll have to try your tactic with a potential buyer using the .BIZ and he's spent the last two months umming & arring about a $500 purchase of the .COM.

I wouldn't mind and just move on myself but he's had built a bloody good website and very little if any of his business is repeat. I'll have to try and sooth his mind and reassure him.

And sales seminars do the same thing anyway - You must be smooth with your words xynames

 

[Bob Hawkes]

It is an original and interesting perspective, @xynames. Thank you for sharing. I am not sure it is so much therapy, although possibly and that is valuable to consider, as people sometimes buy impulsively without a clear plan, but rather just based on a vague idea.

At all pricing levels it seems that many buyers don't meaningfully use a domain name for a long time if ever. And as you note, sometimes don't even change the DNS settings.

I have not done hard data to support this, but my guess is that many domains either get used in the first 60 days of transaction or are unlikely to ever be properly used. Sometimes you see the DNS change right away, a welcome page up within hours, a real website within days or weeks. But if none of that starts in 60 days, often it seems it won't.

Thanks again,

Bob

 

[Ostrados]

Anandoneded projects are very common. I myself had at least 4 or more abandoned projects including websites (but all were hand regged).

Some people get an idea and jump into name selection as the first thing to do, then they secure the brand name by buying the .com domain for it, before even start planning for the project itself.. after that they may delay their project and become distracted by many other things in life.. eventually some of them may abandon the idea entirely.

So no it is not always an impulsive buy, it is the urgent need to secure a brand name before it is taken.. after that there is no need to rush!

As I said it happened with me before (but with hand reg domains), for example I once wanted to build an ecommerce website (Shopify store), the first thing I did was registring a memorable brandable domain name.. I even designed a very beautiful logo for my brand.. but after long reasearch I decided to abandon my oroject because I figured out that ecommerce is incredibly time consuming. I ended up selling the domain for $35

 

[namekahuna]

I totally agree. Having a nice domain name for their business gives many many a sense of accomplishment even before building anything of value. Some of the best domain names available are parked.

 

[AlbyMangels]

As an aside to the original discussion where do you sell you domains?

 

[equity78]

It is an original and interesting perspective, @xynames. Thank you for sharing. I am not sure it is so much therapy, although possibly and that is valuable to consider, as people sometimes buy impulsively without a clear plan, but rather just based on a vague idea.

At all pricing levels it seems that many buyers don't meaningfully use a domain name for a long time if ever. And as you note, sometimes don't even change the DNS settings.

I have not done hard data to support this, but my guess is that many domains either get used in the first 60 days of transaction or are unlikely to ever be properly used. Sometimes you see the DNS change right away, a welcome page up within hours, a real website within days or weeks. But if none of that starts in 60 days, often it seems it won't.

Thanks again,

Bob

Good post Bob and so many times Hollywood deals fall apart and once someone has moved on to another project they could care less about the domain name. I have seen it a few times with sales that were done with those in showbiz.

 

[lock]

I waited for years for one to come to light thought I might get it back if it was never developed but they just took their time.

 

[Kai W.]

The transactions below $10,000 are impulse consumption —— Afternic.com

 

[BradWilson]

I sold a 3 letter dot com many years back for a nice amount and it's still undeveloped.

I had been developing it when I sold it but the offer changed my plans.

I wish I hadn't sold it because I'd probably get a lot more for it now but oh well.

 

[MapleDots]

I'm with most of the posters here... an abandoned project because the cast wanted too much money or something.

 

[xynames]

I must not have made it clear enough, the domain was purchased by a Hollywood producer and was used for its intended use, which had nothing to do with Hollywood or the movie industry, after about a year, for about a year. But now it's being used for nothing, parked.

 

[winst]

There is simply no correlation between the price paid for a domain name, and the success of the business using the name. The price only reflects two things: The price buyer is willing to spend and the price the buyer can afford.

You won't be able to convince a buyer to pay for a 6 figure domain name if he or she just doesn't have the money. And just because the buyer can afford the price, it does not mean the business will succeed.

Take Color Labs for example, it raised $41 million and paid $350,000 for "color(.)com" domain name. The business failed and closed its door.