KeywordDomains

My first BIG aftermarket Buy. Should I go for it?

Discussion in 'General Domain Discussion' started by Avtar629, Jan 10, 2017.

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  1. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    Hello NP,

    This should be in the Pre-Purchase appraisals but I figured since I'm not mentioning the domain it's not the right "fit" for that thread. I'm sure mods will put it in the right "spot".

    Anyways.

    I like starting threads that get people talking (as you can tell)
    So I have a chance to buy an AGED domain (To be announced later if I buy)
    It's been registered since 2004. The "ask" was $3000. I bargained it down to $2200.
    plus it's a single word domain.Brandable too.

    I wanted the deal to be done thru Escrow.com but this person seems to want to go thru Sedo and wants me to pay the 3% sales tax. (should I question this?)

    just on age alone is $2200 a fair price for a domain regged since 2004 but has 1 drop?

    now here's the kicker. A similar domain (developed) sold for $30+ million few years back. (I won't tell)

    (but I bet you all will start to do some research to figure out what that domain is right now just for fun.)

    so back to my question. is $2200 a good price all things considered?

    It's a big move for me doing this.

    worse case scenario realistically this single word domain is 7 times cheaper than thee ask price of a similar domain that's a 2 word domain.($15K)

    So I could sell quickly maybe to that 2 word domain owner for a quick flip. or prepay for 10-20 years renewal and wait for that "retirement money" lol?

    yea yea I'm a dreamer but I really did my homework on this one. I wish I could spill the beans but to protect myself I rather keep quiet.
     
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  2. wwwweb

    wwwweb Top Member VIP

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    Just because someone has an ask on the domain of $15k doesn't make it worth it.

    What does estibot say about it?
     
  3. alcy

    alcy Active Member VIP

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    yes but same goes for estibot. it's a worthless piece of junk.
     
  4. wwwweb

    wwwweb Top Member VIP

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    You have to know what information to extract from it, and what information to exclude.

    When you are on the fence, it can help at times.
     
  5. alcy

    alcy Active Member VIP

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    I'm all for extraction... but i meant the value part.. I guess op wants to know about price and value.
     
  6. 000

    000 Top Member VIP ★★★★★★★★★★

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    From the info you've provided...... no, absolutely not.

    It doesn't sound like you understand the complexities of the industry well enough to be making substantial purchases of this nature.

    Estibot values are irrelevant, asking prices are irrelevant, domain age is nearly irrelevant, etc... these are things you need to understand thoroughly prior to shelling out $x,xxx for a single investment.
     
  7. wwwweb

    wwwweb Top Member VIP

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    This person is attempting to put a hard value on a domain, they are using unsold comparables with listed prices as a guide. This is like walking into a pawn shop, and saying well this is listed for $1M on ebay, but has it sold, is their an established product, or market behind it?

    If this is a sedo listing, then I sort of doubt the claims of the valuation, if it is listed for a $3K ask, coming off $800 is hardly a negotiation.

    This is the same person who balked at people when they said delete your realtor domains, then all the sudden gets a c&d, so I don't know how much of their assumptions are correct.
     
    Last edited: Jan 10, 2017
  8. alcy

    alcy Active Member VIP

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    yes. I do not deny these things.
    however, I really just wanted to make the point that looking at estibot value for this domain.. or any domain.. will get him to absolutely nowhere.

    you know it.. I know it.. but its important to let people who started to domain yesterday or today know about it.

    cheers.
     
  9. wwwweb

    wwwweb Top Member VIP

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    Yes, if you are only looking for a hard number estimate.

    The data is what is key, and bringing it to one screen, helps if you know how to understand it. Along with other extensions registered, along with what has recently sold that is similar in keyword, all of these things help.
     
  10. alcy

    alcy Active Member VIP

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    yes for sure. there is useful data in there.
    but every newer domainer goes to estibot for only one thing. to see the one number domain value. and that is worse than not going there at all.
     
  11. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    well the domain I want to buy estibot priced it at $650 but this guy is adamant on the low $xxxx price not $650.

    plus I know what everyone is going to say already Estibot is crap and I agree.

    The domain that's a 2 word domain similar to this one that's the owner is asking $15K?

    is even lower than that.

    but ok. little more data here.

    you know how "Everyone" is talking about VR? and IOT? right now? well this "niche" I've found seems to be gaining traction and from the looks of things will be big. Especially after reading all the money being thrown into it plus a huge target market! I can't say much more but by comparison to a similar domain. buying this domain is an investment but..on the off chance it's not? I can still make some profit maybe 2-3 times. on the low end.
     
  12. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    alcy? I do want to know about price and value of course? but I guess this post is asking the big question should you trust your gut instinct?

    remember the first time the VR thread was opened? not much faith in it back then yes? of course now no one is laughing and are late to the party yes?
     
  13. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    Thank you for that. but.....I don't know my fat GUT keeps telling met to get it.
     
  14. Robert G

    Robert G Established Member

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    2200 is a great price no matter what the name is, especially
     
  15. 000

    000 Top Member VIP ★★★★★★★★★★

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    You seem determined, so I don't know why you asked in the first place.

    But to gamble $2xxx in hopes of someday making 2-3x profit is neither a wise move nor a sustainable business model.

    There's a reason it's sitting unsold on Sedo. It seems to me that if you make this purchase, the current owner will be the only winner in this situation.
     
    Last edited: Jan 10, 2017
  16. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    actually did not even look at estibot before even contacting thee owner of the domain in question.

    so here's how it went.

    read an article somewhere about a niche that billions are being thrown into for development.
    this niche has a target market of billions.
    I thought hmmm let's see if that domain is taken. it was. that sucked.
    let's see what the 2 word domain was asking for?

    this niche can use either the single word or the 2 word domain. The 2 word domain for this niche the guy flat out asked $15 and nothing lower. I even tested a fake offer of $12K and still did not budget. mind you he just reg it less than a year.

    I'm thinking he read the same articles I did. please he might have some inside track on this niche in particular. not going to say more.

    and then again of course the biggest part. a similar domain in a similar niche but was developed ( I admit) sold for over $30+ million.

    and similar domains have sold for $1-$2 million.


    again to be clear I'm not talking about "Asking" comps.
    I'm talking about historical sales comps for similar domains.

    should I simply ignore all this?

    but like I said worse case scenario. I can sell this domain (once I announce it's sale to Namebio) for sure at least 100%- maybe 300% profit.

    that's not bad is it?

    I wish I could give more details.
     
    Last edited: Jan 10, 2017
  17. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    you maybe right. which is why I did bring him down from $3000 to $2200. to be honest I did leave him "hanging" as I did have the surgery so kinda forgot about it. so I could use that fact that I left him hanging and make him "sweat" a little. ( or not) and maybe ask for a price reduction?

    and you may also be right that this owner might make out like a bandit. I've considered that most of all. I mean he did go down $800. makes me wonder. could he have gone down more?

    as for "hoping" to make 2-3 times profit. that's actually not my hope. that's my safety net. the "hope" is the six figures maybe even seven if I develop.

    but of course some will say I'm a dreamer. and they are probably right.
     
  18. dordomai

    dordomai Active Member VIP

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    no one can tell you from the information you provided. Can you come up with a list of similar sales on the reseller market? Is yours underpriced or overpriced compared to these?

    If in doubt maybe stick to smaller amounts, $500 when making a gamble. If it doesn't go well you will at least not have lost that much. Good luck!
     
  19. hookbox

    hookbox Active Member VIP

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    $2,200 seems low for a one word domain unless it's a fairly long word that doesn't have a ton of possible uses.

    How many extensions regged in?
    How many letters?
    Any of the other extensions for sale and how much?
    Any other existing businesses on the other extensions?
    How many .coms regged using this particular word as the prefix and suffix? Check ZFbot.
    Trademarks using word?
    How many possible users on the first few pages of Google when searching this word?
    Ads for the word?
    When was the last time Whois changed?

    These are a few things I would look at.
     
  20. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    ok are you being sarcastic or serious? lol I can't tell. lol but thanks. and why do you say that? because of the AGE? and is the "safety net" of 2-3 times profit a realistic one? especially if the similar domains ask is $15K?
     
  21. Cdomains

    Cdomains Active Member VIP

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    No real answer can be given without knowing the name.

    Being an old name means nothing.

    It amazes me that people still think this is a big factor in the worth of a name.

    There are plenty of 20 year old sh*t domains.

    There is no NP member here that can answer this question for you not knowing what the name is.

    Forget Estibot and the age.

    The only thing that will help you is a lot of experience.

    If you have been at this long enough and studied and lived this day in and day out you will have an intuitive sense of the value.

    Add to that some careful research and you will know what to do.
     
  22. Avtar629

    Avtar629 MarketDN.com Business Account VIP

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    I've quit using estibot for serious biz. every now and then it's fun to fantasize. that's when I go to Estibot! lol
     
  23. SuperNames

    SuperNames SuperNames.com Business Account VIP

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    Hi,
    Go with your gut feeling! :cigar:
    But also don't let greed affect your decision.
    You can always use that money to reinvest on more domain(s).
    Either way, domaining is a big gamble, you lose some, you win some.
    Ask yourself, will I win on this sale? Will it be a good ROI?

    But, at the end of the day, is your domain and you can do as you please.
    Last time I checked, there is no instruction manual on how to be a domainer.
    I think! :xf.grin:
    Anyways, You learn as you go in this biz...
     
    Last edited: Jan 10, 2017
  24. Cdomains

    Cdomains Active Member VIP

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    Yeah, because they do not know any better.

    It is fun to look at Estibot, but it is not really necessary, and can be dangerous for a newbie if they believe the valuations given.
     
  25. Cdomains

    Cdomains Active Member VIP

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    Better to study past sales and current trends to see what has sold and try to see if it is a good investment for the future.

    Use past sales as comparables for the value.
     

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