advice True Market Value

[tnp17]

Hello

I am self represented first time domain seller. I have been holding a domain for 5yrs, as a neutral assest, with plans to doing something with it in the future. Until I was approached, through GoDaddy, by a Trademark lawyer threatening UDRP if I didn't sell. I fell for their negotiation tactics and we have agreed on a deal, but nothing has formally been signed.

I am happy with all the terms, but getting cold feet on the price after talking with a friend. My domain is an exact match to the company name and brand, and purchased before they were incorporated. I am in no way guilty of UDRP and would like a true valuation before proceeding. Any recommendations on how to proceed at this time before we sign anything,? do valuations actually take into account the other company's brand, revenue, etc? or do I just swallow the pill and accept the potential 60-80% below market value. Thank you

 

[Altetra]

Be careful with such greedy attorneys "if you don't sell we UDRP you" even Godaddy Brokers can be behind such stuff if they see value in a domain, to UDRP is cheaper than 7500$ and if they had a chance they would do it already.
Manipulation tactics can be used for defense. IMO
Godaddy brokers contact me some times, trying to convince me even to donate them the domains, f*** bastards!

 

[cooljub]

Hello

Welcome aboard

 

[tnp17]

Be careful with such greedy attorneys "if you don't sell we UDRP you" even Godaddy Brokers can be behind such stuff if they see value in a domain, to UDRP is cheaper than 7500$ and if they had a chance they would do it already.
Manipulation tactics can be used for defense. IMO
Godaddy brokers contact me some times, trying to convince me even to donate them the domains, f*** bastards!

Think that’s one of the biggest lessons here…. thanks!

 

[Ali Mustafa]

Hello

I am self represented first time domain seller. I have been holding a domain for 5yrs, as a neutral assest, with plans to doing something with it in the future. Until I was approached, through GoDaddy, by a Trademark lawyer threatening UDRP if I didn't sell. I fell for their negotiation tactics and we have agreed on a deal, but nothing has formally been signed.

I am happy with all the terms, but getting cold feet on the price after talking with a friend. My domain is an exact match to the company name and brand, and purchased before they were incorporated. I am in no way guilty of UDRP and would like a true valuation before proceeding. Any recommendations on how to proceed at this time before we sign anything,? do valuations actually take into account the other company's brand, revenue, etc? or do I just swallow the pill and accept the potential 60-80% below market value. Thank you

if you registered the domain before the company existed then usually you are safe from udrp in many cases people try to use legal pressure to negotiate cheaper if you are happy with 7500 its still a very good sale especially if automated tools were valuing it much lower

 

[Bob Hawkes]

There is no such thing as a "True Market Value". A domain is only worth what someone is willing to pay for it. The ideal way to price a domain is according to how much value the domain will deliver for the buyer. The company's brand, valuation, revenue etc. do not dictate the value of the domain to them but they can be informative. For example, if the buyer is a consumer brand that spends millions of dollars each year on advertising their domain name, that would push the price of the domain up a lot. If the buyer is a small consulting firm that does not have a public website then the value would be much less.

Just want to thank @fka1080405 for this superb summary of what constitutes value of a domain name. Because it is the value a certain domain name will bring to a user, automated appraisal tools will never be able to precisely give a value.

Right now is a good time to ask yourself: would you be happy with $7,500? Any time you counter, you risk the buyer pulling out. If $7,500 is a meaningful amount of money and you would be sad to lose this sale,

I wanted to highlight and support this idea. The money on the table is substantial. Think carefully aboout what be wrote: "would you be happy with..." If you (the OP) would be even reasonably happy, there is a lot to be said for taking the money, reinvest in other assets, and move on. By not taking that route, you assume a risk, difficult to assess, of possibly needing to defend a UDRP and maybe even losing name. If you do not self defend the name, you will encounter substantial legal fees in protecting the name.

I am sure this decision is stressful, and wish the OP the best.

-Bob

 

[Ali Mustafa]

Just want to thank @fka1080405 for this superb summary of what constitutes value of a domain name. Because it is the value a certain domain name will bring to a user, automated appraisal tools will never be able to precisely give a value.


I wanted to highlight and support this idea. The money on the table is substantial. Think carefully aboout what be wrote: "would you be happy with..." If you (the OP) would be even reasonably happy, there is a lot to be said for taking the money, reinvest in other assets, and move on. By not taking that route, you assume a risk, difficult to assess, of possibly needing to defend a UDRP and maybe even losing name. If you do not self defend the name, you will encounter substantial legal fees in protecting the name.

I am sure this decision is stressful, and wish the OP the best.

-Bob

Bob you made an excellent point. There is rarely a single “true market value” for a domain. It often comes down to the specific buyer and how much value the name brings to their brand or business.