gTLD Service.xyz sold for $355 in eBay marketplace

[Saeid Nejati]

Hello NPs!

This domain Service.xyz sold for $355 in ebay previous days ago.

Is this price fair for this one word .XYZ domains ? What do you think ?

 

[OnlineDomainShop]

Renewal kills it

 

[Haroon Basha]

This domain is going to expire tomorrow (September 5) at Sav.com. The Renewal fees is $ 514.95

 

[NYJimbo]

If that was the best the current owner could get, then something is wrong. Service.xyz is a "liquid" name in the .XYZ tld. It should have easily gone for $1000 or much higher.

I'm not going to revisit the whole Swetha thing, but for whatever reason most people end up selling a name like this for $500 or so and then others easily sell it for $50,000.

Why does it happen ? I don't know, I don't care. I stopped trying to figure it out. But yeah, the renewal kills holding on to them for long.

 

[Haroon Basha]

"If that was the best the current owner could get, then something is wrong."
What do you suspect? Can you please elaborate what would have went wrong?

 

[NYJimbo]

"If that was the best the current owner could get, then something is wrong."
What do you suspect? Can you please elaborate what would have went wrong?

No. Not going to start anything here. Just saying $355 is unbelievably low when I see stupid .XYZ names going for thousands or tens of thousands.

 

[jhm]

If you don't mind the renewal, cool. If you do, ouch

 

[Haroon Basha]

I won the auction for $355, there will be Renewal tomorrow $514.95. No issues renewing two or three or four times, still the I am expecting the selling price would be just fantastic.

 

[LoveCatchyDomains]

I won the auction for $355, there will be Renewal tomorrow $514.95. No issues renewing two or three or four times, still the I am expecting the selling price would be just fantastic

Congrats on the purchase!
If the seller doesn't transfer the domain prior to the expiration, is there any risk they would have to pay the renewal fee to do the sale?
Also, for your subsequent renewals, is there any guarantee that the company won't increase those fees next year or beyond? That would certainly be a relief for you, if the renewal costs remain the same or even go down for future years.

 

[DigiNames]

Killer deal for the buyer, even with the renewal

 

[NYJimbo]

Killer deal for the buyer, even with the renewal

Hopefully. I mean if it was, why did it sell for so little. Anyway, only time will tell.

Here is its known history, for what it's worth:

 

[redemo]

@Eric Lyon gave a good assessment of this domain name https://www.namepros.com/threads/service-xyz.1282633/

 

[bmugford]

It's a solid term, rather generic.

In my view though premium renewal fees can really turn assets into liabilities quickly.

Brad

 

[Haroon Basha]

Congrats on the purchase!
If the seller doesn't transfer the domain prior to the expiration, is there any risk they would have to pay the renewal fee to do the sale?
Also, for your subsequent renewals, is there any guarantee that the company won't increase those fees next year or beyond? That would certainly be a relief for you, if the renewal costs remain the same or even go down for future years.

The domain name is already in my account. There is no guarantee that there will not be any increase in renewal fees next year or thereafter.

 

[jhm]

I won the auction for $355, there will be Renewal tomorrow $514.95. No issues renewing two or three or four times, still the I am expecting the selling price would be just fantastic.

Bravo on the sale. as @bmugford said, hope you turn a decent profit when those renewals start racking up. When you're in the hole for Low / Mid X,XXX in renewals and no sale over the course of 3,4,5 years, starts to become dicey. Hope you catch a serious end user

 

[phaethon]

I won the auction for $355, there will be Renewal tomorrow $514.95. No issues renewing two or three or four times, still the I am expecting the selling price would be just fantastic.

I don't see any practical use of that domain to be honest. What service? Too general and abstract. It's also XYZ, which means if you are not Swetha, very hard to sell for decent money. Add the high renewal fee and you have a recipe for disaster. Even Com is for sale! Hope the owner of com is not 89 year old and still waiting for the domain to be sold for USD 2.000.000

 

[bmugford]

Bravo on the sale. as @bmugford said, hope you turn a decent profit when those renewals start racking up. When you're in the hole for Low / Mid X,XXX in renewals and no sale over the course of 2,3,4,5 years, starts to become dicey. Hope you catch a serious end user

The problem is even assuming a 2% sell-through rate, which is relatively high even for .COM, you would need 50 years of renewals on average to make a sale. At 1% that would be 100 years.

2% STR - $25,747.50 (Renewal fee at current price)
1% STR - $51,495.00 (Renewal fee at current price)

Those are the numbers just to break even. You need to have a much higher STR or sales price to make the math work.

I realize this is one domain, but it shows how these type of premiums don't scale well at normal sell-through rates.

Brad

 

[jhm]

The problem is even assuming a 2% sell-through rate, which is relatively high even for .COM, you would need 50 years of renewals on average to make a sale. At 1% that would be 100 years.

2% STR - $25,747.50 (Renewal fee at current price)
1% STR - $51,495.00 (Renewal fee at current price)

Those are the numbers just to break even. You need to have a much higher STR or sales price to make the math work.

I realize this is one domain, but it shows how these type of premiums don't scale well at normal sell-through rates.

Brad

Yeah, its horrendous

 

[StartupNames]

Renewal could probably cost more.

 

[redemo]

If that was the best the current owner could get, then something is wrong. Service.xyz is a "liquid" name in the .XYZ tld. It should have easily gone for $1000 or much higher.

I'm not going to revisit the whole Swetha thing, but for whatever reason most people end up selling a name like this for $500 or so and then others easily sell it for $50,000.

Why does it happen ? I don't know, I don't care. I stopped trying to figure it out. But yeah, the renewal kills holding on to them for long.

How many people go and search the word service? How brand-able is the word service? If it was .com then ok, it goes through the roof. But in .xyz I just don't see the intrinsic value?