.mobi Value of names

[Kate]

if it's fairly easy to launch a new TLD, some people may ask why spend seven figures on one domain when the same investment could buy an entire TLD?

You could indeed buy a whole new TLD to yourself but you would spend a lot more on promotion, cause initially nobody knows that it even exists. Or the conservative approach: you stick to established TLDs and you are more visible (and more trusted).

One day, a colleague of mine received an E-mail from a .aero address and he was convinced there was a mistake. He just didn't know about .aero :lol:
BTW he is in the computer business like me, he's not a domainer but he's not an Internet newbie.
Masses are not familiar with the 200+ TLDs so they tend to be suspicious when they see 'unusual' domains :talk:
As usual it all boils down to critical mass.

 

[000]

Why would you pay $1000 for a name that is listed for sale at $100? This is most likely an example of someone overpaying rather than the name having "two values".

A domain always has greater value to someone who has an actual use for it, than to a reseller. If the domain in question is having a hard time fetching $100 in the reseller market that doesn't mean it's not worth $1000 to someone who's got a good specific plan for it.

I have a domain (.com) that in the reseller market (NP, DNF, DP, etc) probably would have a hard time fetching $50. But I had someone contact me by email offering $750 for it. So, what's the value... $50, $750, or something different? Is the person offering $750 overpaying? Absolutely not, in my opinion. It's a great domain for their venture. $50 would be a STEAL. But at $50 it would probably be overlooked by a reseller.

I think perhaps most dominers think along these lines so I understand that you think like that, personally though I just think the concept is a lot of baloney.

Yes I agree that most domainers think along these lines.... I think the 'problem' (that we could both agree on) is that many domainers will hold onto a domain forever hoping for that jackpot offer, rather than accepting a fair offer.

Different domainers have different business methods... go with whatever makes ya happy lol

 

[snoop]

A domain always has greater value to someone who has an actual use for it, than to a reseller.

If that is true why do I get a constant stream of endusers offering me $500 on names I paid 5 figures for?

I have a domain (.com) that in the reseller market (NP, DNF, DP, etc) probably would have a hard time fetching $50. But I had someone contact me by email offering $750 for it. So, what's the value... $50, $750, or something different? Is the person offering $750 overpaying? Absolutely not, in my opinion. It's a great domain for their venture. $50 would be a STEAL. But at $50 it would probably be overlooked by a reseller.

Like I said before, the value is what it would get at auction. If the buyer knew it had been for sale at $50 and didn't find a buyer do you think they'd be offering $750?

 

[000]

If that is true why do I get a constant stream of endusers offering me $500 on names I paid 5 figures for?

Easy. Either (1) you overpaid, (2) you're getting offers from resellers/domainers rather than end users, or (3) these alleged 'end users' have very shallow pockets and you need to wait for an end user who wants your domain more. That or maybe you need to get better at negotiating.

Like I said before, the value is what it would get at auction. If the buyer knew it had been for sale at $50 and didn't find a buyer do you think they'd be offering $750?

Probably not outright, but if it came down to it they'd fork over $750 for it. It's their misfortune that they missed the auction... but that doesn't change the fact that to them it's worth $750.

 

[snoop]

(3) these alleged 'end users' have very shallow pockets and you need to wait for an end user who wants your domain more.

This seems to contradict your original statement,

"A domain always has greater value to someone who has an actual use for it, than to a reseller."

Not all enduser will offer a high price, in fact most won't, the really good sales that dnjournal often reports are the outliers, the small percent of endusers who will pay high prices.

Personally some of the cheapest names I have ever bought have been from endusers. The idea that endusers will always (or even mostly) pay more than domainers is a complete myth.

Here is a really extreme case of that, it is probably the most striking case I have ever seen of an enduser clearly valuing a name way below what a domainers values it at,

"$30,000, grants.com"

That name was bought by a domainer from the maker of Grants Scotch Whisky.

http://www.dnjournal.com/archive/domainsales/2005/domainsales02_08_05.htm

 

[000]

I'm not saying that ALL end users are willing to pay more than a reseller.

And buying a domain from an end user probably signifies that the end user is done using it. Either way it must not be very important to them anymore, so of course they might as well cash out... and many times (as in your Grants.com scenario) the end users will sell themselves short, since they aren't domainers.

But what I said about "waiting for an end user who wants your name more" still applies. Not all end users are made equal.

 

[000]

A domain always has greater value to someone who has an actual use for it, than to a reseller.

I'm not saying that ALL end users are willing to pay more than a reseller.

That is not what you said previously, you even highlighted the key word yourself,

Those are not contradictory statements. I said "someone", not "anyone". Of course some end users don't have as large budgets as others.

But, I think we're getting a bit off topic here. I don't even remember where this all came in lol...

 

[scandiman]

The equivalent in domains is names sold via auction, that is all the stock market is, a continuous auction for stocks. The same is true for just about any item you can think of, unique or non unique, a piece of artwork, a piece of land, a barrel of oil, 1000 pork bellies. Auction data is what people rely on.
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What it would get at auction.

If domains were required to be sold in auction then it would be a meaningful measure, but with so many private domain transactions, auction prices don't come close to telling the full story. BTW, which domain auction venue is it that you esteem to be so trustworthy to determine value?

 

[snoop]

, which domain auction venue is it that you esteem to be so trustworthy to determine value?

As stated above, Sedo, Snapnames and Namejet.