The $200,000 domain name "YouPay"

[DomainVP]

Every now and then you will see a sale for $200,000 go through for a domain name that you would expect to sell for $5,000, maybe even less.

Recently You // Pay (.com) sold for $200,000; sold by one of domainings industry leaders.

But why? Why so much for a brandable domain?

The answer... because he asked $350,000 for it.

How much did he pay for it? Under $400 dollars.

Most 'decent' domains can be worth six figures on any given day, if you ask for it and you are taking to the right end user.

So when someone tells you that a name is or isn't worth a price, take that information with a 'grain of salt', so to speak.

I can personally tell you that I've sold $1 domains for thousands.

The internet is still young, years from now when the masses will finally start to understand why exact match domains & short brandables are good, and why .COM is important.

It's then when even the $500 domains we buy now can command a high 5 figure to six figure price on a regular basis.

Looks like that time is upon us today.

 

[garptrader]

Oftentimes it comes down to who is selling and who is buying. My view of this sale is that it has a lot to say for the seller's negotiating skill rather than it being a phenomenal domain name. Of course I personally don't think iReport.com (RS sold for $750k) or eBet.com (RS turned down a million dollar offer) are all that great either (not even real words with meaning) but a buyer was willing to pay that price. My highest brandable sale was a Spanish domain CarroYa.com for $3000 which on a forum might sell for $50.

 

[DomainVP]

This is true.

I think there needs to be a bit of an 'awareness' campaign on behalf of domainers.

Letting todays investors know that a short brandable name is worth at least low to mid $xx,xxx and at best six figures.

If those that have decent brandable domains and exact match domains don't sell to end users for less than those prices, it then becomes the market norm.

 

[twomoon]

If you will never ask for $200K, you will never sell for $200K

This is theory. On practice (for me at least) it doesn't work. For me it even doesn't work in xx,xxx range.

 

[DomainVP]

We do alright when it comes to end users contacting us, if we are contacting them and doing a cold call $2k to $10k is the norm.

The backstory to You // Pay apparently was they they contacted him a few months previously, and then nothing. One day randomly they wanted to proceed with the sale and converted within 24 hours.

The name was held for 9 years, he also turned down offers for $50k and $75k. Which in my opinion was a bit foolish, because liquidity is king.

Sometimes you have to live a little foolishly to win eh?

 

[Kate]

The problem is that many domains are priced unrealistically. This industry is full of dreamers. If you stick to that price range, you have virtually zero chance of making a sale ever. That's why the market is inefficient.
I am not talking about pure generics that are actually worth 6 figures, but semi-decent or brandable domains where the value is very much debatable. Until a sale is made, you can say what you want. The buyer has to agree with you on value.

The internet is still young, but that doesn't mean the demand for domains will explode. It's not like everybody wants to own one. Most people are not interested if its not for business purposes.

 

[TheWatcher]

With thousands of new gTLDs, it will be difficult to sell 6 figures domains.

The alternative domains are here, take it as an opportunity and not an obstacle to your business.

 

[DomainVP]

I respect your point of view.

We don't buy names to sell to Tim Jones who wants to put up a collage of his family, we buy names to sell to companies and business ventures.

Most businesses fail to understand the importance of a quality domain to this day. It's why this gTLD fiasco has any traction at all.

Once overall awareness increases, the prices will as well... as long as you stick to your guns. Otherwise if people sell lower, then the market will reflect that. That's just economics 101.

As for 'realistic' vs. 'unrealistic' pricing, that metric is set by us, and I don't think enough domainers empower themselves with that knowledge.

If we all agreed that a 4 L.com of any variant is worth a minimum of $10,000 today, and nobody sold for less than that, then the value of any given 4L.com would be $10k.

If there was a water shortage, and you have the last 10-gallon jug in the city. Would you sell it for $50, or would you trade it for a car with a full take of gas to get you out of that city.

I'll give you a direct example... we had a domain nobody on this entire forum would buy for $300. The mantra was, "its not worth that". Within 1 week we started an end user hunt, found an end user, and sold it for $5500.

Domainers setting low prices for quality names is the only thing holding us all back from being filthy rich today.

The problem is that many domains are priced unrealistically. This industry is full of dreamers. If you stick to that price range, you have virtually zero chance of making a sale ever. That's why the market is inefficient.
I am not talking about pure generics that are actually worth 6 figures, but semi-decent or brandable domains where the value is very much debatable. Until a sale is made, you can say what you want. The buyer has to agree with you on value.

The internet is still young, but that doesn't mean the demand for domains will explode. It's not like everybody wants to own one. Most people are not interested if its not for business purposes.

 

[forge]

One of the biggest problems I see is that "Exact Match Domain Liquidation" goes against EVERYTHING you're trying to sell us in this thread. Think about it.

---------- Post added at 12:11 PM ---------- Previous post was at 12:09 PM ----------

Letting todays investors know that a short brandable name is worth at least low to mid $xx,xxx and at best six figures.

And yeah, good luck with that one, too.

Sarcastic, a little, but also realistic.

 

[DomainVP]

I <3 sarcasm... get's me all fired up!

Are you an end user? Oh you aren't?

This applies to END USERS.

Reading is fundamental.

Domain liquidations apply to domainers, and I also said liquidity is king. But you didn't read that did you? You just wanted to get your quick jab in there to work your fingers.

We aren't liquidating our BEST domains, just the ones that would be of value to another domainer who may have better contacts in different markets.

Theres always one smart*** isn't there. Cheers to you! :loveyou:

One of the biggest problems I see is that "Exact Match Domain Liquidation" goes against EVERYTHING you're trying to sell us in this thread. Think about it.

 

[DomainBFF]

I respect your point of view.

We don't buy names to sell to Tim Jones who wants to put up a collage of his family, we buy names to sell to companies and businesses.

Sorry for being a little off topic, but I noticed you keep saying "we" and I don't know how that would even work out in domaining.

Unless you guys are superstars with huge portfolios. Just never thought of domaining as a partnership 1

 

[AEProgram]

Domainers setting low prices for quality names is the only thing holding us all back from being filthy rich today.

Domainers sending high prices are sending people off to buy names with hyphens and in .net and other extensions.

The last few mega auctions should tell the story, by all counts compared to all prior years the recent buydomains, oversee, heritage auctions where a mega flop.

Look at the current snap auctions, the current sedo marketplace auction, its all a big fat joke, who are we kidding exactly?

Those who like to stay around and make a buck, follow the hugedomains model, list a buy now price thats reasonable, make the cash and keep on moving.

The domainnamesales method is dead in my opinion, you tell people silly prices, they move on to other options.

---------- Post added at 12:27 PM ---------- Previous post was at 12:26 PM ----------

Sorry for being a little off topic, but I noticed you keep saying "we" and I don't know how that would even work out in domaining.

Unless you guys are superstars with huge portfolios. Just never thought of domaining as a partnership 1

I dont know appyum and I do enjoy for the most part quality posts he makes, but having worked with freelancers a lot I noticed that those that use the word "we" live in mommies basement.

 

[DomainVP]

"We" as in our company and investment team; sales associates, developers etc... We are a staff of 8 to 15 people at any given time.

I guess a lot of domainers miss an important part of the 'name' process; that businesses pay a lot for domains because they are an actual revenue generating part of business.

That domain that we sold for $5500 that nobody here would pay $300 for was bought by a realtor in his state that the domain applied to. Having that name would help his SERP and marketing initiatives. it improves his business, so it if valuable to him.

We don't just buy names, and hope that the lord shines upon us some day and someone will buy them for a huge amount. We take these domains and one-by-one develop them into functioning revenue generating websites.

Most domainers have the 'underpants gnome syndrome'.

If you are familiar with South Park, the underpants gnomes follow a three step process to success:
Phase 1: acquire underpants
Phase 2: ?
Phase 3: make profit

Its that missing part that is overlooked in domaining.

We fill that missing part with development.

We don't just buy names, we are buying business ideas. From everything from parenting resources to full service domain aftermarkets; we have a site for that.

If we can't envision a business for a domain name, we leave it alone.

Example: You // Pay sold for $200k, we own Que // Pay, which essentially means to get ready to pay, or to prepare payment. I can see that being a merchant services site, and we will develop that if we get around to it. If a european company decides that it's the name for them and they offer six figures for it... then so be it, we will meet that bridge when we have to cross it.

We keep a portfolio of 500 names at any given time at the moment, some were acquired for $5000 some for $1; but they are all good names that can be turned into profitable businesses.

Having quality names is better than having a huge portfolio of .biz and .info.

best of luck friend. Cheers!

Sorry for being a little off topic, but I noticed you keep saying "we" and I don't know how that would even work out in domaining.

Unless you guys are superstars with huge portfolios. Just never thought of domaining as a partnership 1

 

[Kate]

If we all agreed that a 4 L.com of any variant is worth a minimum of $10,000 today, and nobody sold for less than that, then the value of any given 4L.com would be $10k.

I disagree. It's wishful thinking.
The value of any given 4L.com is not $10k until every given . 4L.com actually seeks for $10k.
Domainers don't control the market. They wish, but the buyers are the payers and they call the tune because we need them.

The aftermarket only exists within the bounds of prices that end users think are 'acceptable', or can afford as business expenses. If everybody priced their 4L at 10K minimum - then more end users would have an incentive to shift to another extension, a ccTLD, or ditch the idea of using a 4L in favor of a longer domain. Then you kill the market and shoot yourself in the foot. End users are not willing to pay any amount of money you dictate. They have to have the funds and desperately need the domain. They usually have alternatives.

If there was a water shortage, and you have the last 10-gallon jug in the city. Would you sell it for $50, or would you trade it for a car with a full take of gas to get you out of that city.

Poor comparison. Man cannot live without water. Man can easily live without domains. In a Max Max scenario like that I would just shoot you and keep the $50, and the car.

 

[DomainVP]

I drive an Escalade, have a 4 bedroom house, two kids, and my wife is 10 years younger than I and looks great in a bikini.

When you get to be in your late 30's these kind of things are nice to have.

My mother never had a basement when I was growing up because I grew up in a two bedroom apartment in philadelphia, so that was never an option.

But thanks for that.

Domainers sending high prices are sending people off to buy names with hyphens and in .net and other extensions.

The last few mega auctions should tell the story, by all counts compared to all prior years the recent buydomains, oversee, heritage auctions where a mega flop.

Look at the current snap auctions, the current sedo marketplace auction, its all a big fat joke, who are we kidding exactly?

Those who like to stay around and make a buck, follow the hugedomains model, list a buy now price thats reasonable, make the cash and keep on moving.

The domainnamesales method is dead in my opinion, you tell people silly prices, they move on to other options.

---------- Post added at 12:27 PM ---------- Previous post was at 12:26 PM ----------



I dont know appyum and I do enjoy for the most part quality posts he makes, but having worked with freelancers a lot I noticed that those that use the word "we" live in mommies basement.

---------- Post added at 12:55 PM ---------- Previous post was at 12:48 PM ----------

Then you proved my point well.

I did say 'stick to your guns', not walk out like a lamb.

If we all stuck to our guns, meaning retaining possession with an absolute minimum high figure price. Then there would be no choice from the consumer to pay.

So if I had the water, and 5 other people that had guns and stuck to them, I don't see that scenario working out well at all.

Tomato - Tomaato

You // Pay sold for $200k. That's facts. Bottom line is that you get what you ask for. So if it's not $200k then you might get a $50k offer, either way it's a win.

Poor comparison. Man cannot live without water. Man can easily live without domains. In a Max Max scenario like that I would just shoot you and keep the $50, and the car.

---------- Post added at 12:57 PM ---------- Previous post was at 12:55 PM ----------

4:56 PM and my day is over. Have a great day everyone!

:hearts:

 

[Keith]

With thousands of new gTLDs, it will be difficult to sell 6 figures domains.

Couldn't disagree more.

I had a conversation with one of the most successful people in the game about this. He's sold internet companies for hundreds of millions! Anyhow, the take is that the new gtlds are a joke and it's clearly obvious at this stage that he's correct.

 

[Jingles]

:music: App came in like a wrecking ball!! :music:..........




and now he gone

 

[DomainBFF]

That sounds like the typical day of the life of a domainer. Buy domains that generate value for an end user and develop them if you know how.

I still just don't see the group aspect coming into play in such am independent industry. 8-15 people would have to be flipping sites nonstop to generate a healthy profit.

---------- Post added at 01:43 PM ---------- Previous post was at 01:37 PM ----------

Oh and anyone who isn't aware of 2. ?? 3. Profit failed at the Internet!

 

[forge]

That sounds like the typical day of the life of a domainer. Buy domains that generate value for an end user and develop them if you know how.

In my mind that's not typical at all. Selling a developed "website" is not a domain sale in the pure sense. In fact, domain news outlets such as DNJournal do not report these as domain sales and in the rare instance they report them at all it is with a disclaimer.

 

[Jasonn]

With thousands of new gTLDs, it will be difficult to sell 6 figures domains.

The alternative domains are here, take it as an opportunity and not an obstacle to your business.

if anything the new gtlds make quality .coms worth even more! you've been drinking too much of the kool-aid. .com=city center... new gtlds=the burbs..which is worth more?