The Disconnect between $X,XXX and Reg Fee

[domainhacks-931385]

There are lots of domains that are low quality and are priced on sedo or other sites at $X,XXX. The person must think it is worth that as that's what they price it as.

"Unfortunately, your offer is too low and cannot be accepted. Please submit an offer above the seller's minimum bid threshold of 5,000 USD."

But when similar domains are appraised here people say it is worth reg fee. Why is there such a disconnect between these prices?

 

[SK1990]

I can set my offer page on sedo to only accept offers above $1,000,000 on the worst domain money can buy, but that doesn't mean that it will sell for that. There are thousands of domains sitting on there that will NEVER sell for the asked price, or at all for that matter. Most of the time the reason people set these outrageous prices are inexperience and ignorance.

Starting out most are blinded by the price tags on the big sales.

 

[domainhacks-931385]

I can set my offer page on sedo to only accept offers above $1,000,000 on the worst domain money can buy, but that doesn't mean that it will sell for that. There are thousands of domains sitting on there that will NEVER sell for the asked price, or at all for that matter. Most of the time the reason people set these outrageous prices are inexperience and ignorance.

Starting out most are blinded by the price tags on the big sales.

If it is inexperience and ignorance, then why do some of the big names have out of touch prices also?
Such as http://domainnamesales.com/

 

[Kate]

There are lots of domains that are low quality and are priced on sedo or other sites at $X,XXX. The person must think it is worth that as that's what they price it as.

...

But when similar domains are appraised here people say it is worth reg fee. Why is there such a disconnect between these prices?

People can set absurd prices on their domains, that doesn't mean somebody would even take them for regfee. Even domainers who should know better tend to have unrealistic expectations.
IMO the disconnect is not in prices but analysis of demand. The price is unimportant if nobody wants your domain.

When I appraise a domain, one of the very first question I ask is, is there a likelihood that somebody would want to own that domain. If the statistical likelihood is zero or very close then the question is answered.

why do some of the big names have out of touch prices also?
Such as http://domainnamesales.com/

Same could be said about Buydomains. But they both have good names that are priced right too. I think these are well funded operations and they don't have an incentive to liquidate at low prices, they hold out for the truly motivated buyer. But their prices are definitely negotiable.

They have a specific business model and you can't really compare them to the average domainer who:

• doesn't have similar inventory to begin with
• doesn't have cash flow and must sell domains at 'market rates' to maintain liquidity
• doesn't have a similar track record and reputation... I do not expect that a potential buyer would take me as seriously as Rick or Frank :wave:

 

[alien51]

Domain Pricing, is like your dream. It's whatever you want it to be.

What price your domain actually sells, is the point when you wake up from the dream.

 

[DU]

I do not expect that a potential buyer would take me as seriously as Rick or Frank :wave:

If I was your potential buyer I may take you more seriously.

 

[hopkism]

I agree that far too many of us are not realistic enough with our expectations, not on prices but demand. Regardless of what price is set, you really have to estimate if someone would actually want the domain and use it. Even if it is an awesome keyword, short and in the .com. What is it worth if no one wants it and no one can use it?

 

[accent]

A business will pay low - mid $$$$ for their name, if they will buy an aftermarket domain at all. Less than that says "cheap".

If you have domains that will sell now for, say, $50 or more to resellers, then there probably will be an end-user willing to buy it eventually for $$$$. Ten or twenty years. The assumption was that domain aftermarket values would out-pace the return on more conventional investments and sales would pay renewals. This model is a bit more risky now with the new TLDs, but still probably will make money.

 

[WORDSWORTH]

Sometimes it may also be that the seller would rather keep the domain than sell for less than $x,xxx. I know that applies to me with some of my domains I might consider using for future projects. For instance, I countered a $200 offer for a domain I picked up quite recently for less than $20 with $5,000. The potential buyer registered the .biz instead but I still have the killer .com

I probably could've got $500 quite easily but the domain is worth more than that to me. Whether you or anyone else thinks it's worth it is immaterial in this case.