Valuing Domains

[MrOriginal]

Hi, I am new here and have been reading around here and various sites for the past day now. In particular regarding valuing the potential profit and then registering that domain.

I am confused on the process. I am aware that a domains value is determined by the person needs it. Escpecially now that single word .com domains are long gone.

Im basically asking how you estimate if a domain name is a good one or not.

Key factors seem to be character count, brandability, keyword popularity, cpc price, lack of suffix's, in demand topics, .com, etc.

But a lot of the names I am finding in lists of recently sold domains don't seem to match that criteria. For example: genusspur.com was sold for like 2-4k (cant remember exact), if this name was available to register currently, I wouldnt look twice. Unless this is a foreign word but that is besides the point as there are tons of english domains selling with crap words like this.

1. How can you estimate the value of potential that could be there to the right buyer, within reason of likelihood.

2. Do a lot of these "domains" typically have "websites" built on them generating traffic before selling?

Maybe im missing something here, but lol m1nt.com $4,075, why not h4t.com for $5000? csasecurity.com $2,295 (I can only see this being sold because the domain was registered before the company was built, or else the company would have registered it, in which case the original registrar was guessing?) why csasecurity? why not bsrsecurity.com. or azrsecurity? Am I missing something here?

I mean come on, 2475.com sold for $2,000, jm365.com for $2,405

With crap domains like this there must be tons of potential to still to register names similar. So did these people just wing it and hope someone someday will need these random assortment of words or numbers? Or is there some kind of system to pre-appraising a domain?

I understand good singluar word domains selling like business.com or even onlinebusiness.com or even bestonlinebusiness.com but not this other crap.

In the past day, for fun ive thought of good domain name that are available. Most are .us and .org. but contain good 2 word keywords. Like, cheaptables.us or softwarereview.us (both these are taken examples) you get my point.

Also ive though of catchy what I think is good brandable .com's,......such as celebritysecrets or celebsecrets.com (idea papparazzi kind of thing)

Basically becuase of all these things I am confused on valuing domains. I feel like this is a market where the prices will only go up as supply dries up. Like oil, just not to that extent.


so do sites like: somewhat 2 word EMD's using .us extensions like:
cheaptables.us or softwarereview.us.....hold any value?

or do catchy names like.....celebsecrets.com or TotallyTuna.com kinda thing hold value? domaindiscovery.com discoverdomains.com, dollardomains.com.... I can think of this crap all day until one sticks

Anyway, im good at thinking of creative names, and I think for 10$ a domain lottery ticket its worth the potential risk. However I am not understanding the method or algorithym in determining how to be successful in this.

Any help

 

[MrOriginal]

any real members

 

[Chris Wright]

Mr. Original, you are thinking about the right things.
Appraising is an art, not a science. Its not very quantifiable.
That is why so many NamePros either laugh, or complain, about appraisal bots.
No algorithm can account for the infinite nuances and - yes - random considerations that constitute the domain market.
You need to think like an investor / marketer / CEO / customer.
If it is even possible to master, you will win many bets.

 

[GravityEleven]

Regarding genusspur.com..

it is in fact a german word meaning simply smthg like "indulgence pure" (for exclusive foods, wine, etc..) but used pretty often as a catchy marketing term by many supermarket chains.. hence the value of such a domain (there are even food magazines calling themselves "Genuss Pur" after a quick Google search)

 

[alien51]

So did these people just wing it and hope someone someday will need these random assortment of words or numbers?

Yes.

Or is there some kind of system to pre-appraising a domain?

Just because some weird name got sold, it doesn't mean weird domains are selling like pancakes. If that was true, we wouldn't be hanging out here at Namepros, but sunbathing in Hawaii.

And also, you are not even considering that many buyers have overpaid on buying so-called "premium" domains, wasting money for no apparent sensible reason. Think about Mike Tyson buying a pair of Bengal tigers for a pet. Or Paris Hilton buying a McLaren sportscar she can't drive above 40 miles per hour. It's pointless to figure out why some people pay huge money for something that makes you scratch your head.

Anyway, im good at thinking of creative names, and I think for 10$ a domain lottery ticket its worth the potential risk.

As you go along, you will eventually come to realize that ALL DOMAINERS think the same way.

 

[biggie]

Hi, I am new here and have been reading around here and various sites for the past day now. In particular regarding valuing the potential profit and then registering that domain.

:talk:

Hi Mr Original

please don't take anything I say personally, it's all business.

1. you ain't very original, cuz you did same shit every other newbie does.

look at what you said:
you've been reading for the past day now.
particularly about profit and registering

no wonder you are confused.

I am confused on the process. I am aware that a domains value is determined by the person needs it.

:talk:

a domains value is NOT determined by the persons needs or the person who wants it.

because, if that particular person doesn't need or want it that bad, then does the value of the domain decrease?

also, there is a difference between "value" and "price"

so, don't just accept a line in an article or post and swallow it.

Im basically asking how you estimate if a domain name is a good one or not.

:talk:

answer is:
gut feeling, that you acquire over time.
you must experience the pitfalls of buying and trying to sell domains, before you learn.

sure, you can get an "outside- looking- in" idea of the domain game from reading, but it depends on what you read.

best to read thru all the sales threads and the domains wanted threads going back 10 yrs, to learn some history.

see what is being offered for sale, what gets sold quickly, what takes longer, read domains wanted threads to see what "buyers" are looking for and how much their budget is for that category or subject.



Good Luck!


imo...

 

[MrOriginal]

:talk:

a domains value is NOT determined by the persons needs or the person who wants it.

because, if that particular person doesn't need or want it that bad, then does the value of the domain decrease?

also, there is a difference between "value" and "price"

so, don't just accept a line in an article or post and swallow it.

I disagree here. As it seems all true/steady value domains are taken. The only domains available to be hand reg'd would be ones that have value solely based on the specific buyer.

I guess a better question I should be asking is, is there a method or tips to hand regging names that people will want based on brandability?

Or is there potential future profits in registering EMD and keyword rich .us or .co domains?

Or will the addition of new extensions decrease the value on these less popular extensions further?

 

[mikeowoicho]

You're not ready to learn. When you re ready, you do what the poster you're "disagreeing" with said.
Goodluck.

 

[Domainor]

I think the value of a domain lies in the eye of the person who either wants it because he really needs it or sees it and does not need it but wants it for some reason. That explains why some domains, which may actually seem to be of no use, get picked up by someone who pays a hefty price for it. It also explains why some domains which may have a combination of names, words or numerals may be bought by someone because well maybe that's is his home address for all you know.

But yes, as mentioned above you develop a skill to gauge the real value of domains over time. Some of it you do learn through information that is freely available or paid for, but some you acquire through experience over time.

 

[biggie]

I think the value of a domain lies in the eye of the person who either wants it because he really needs it or sees it and does not need it but wants it for some reason.

:talk:

you basically said same thing as OP, only rearranged the words around.

because you let the buyer tell YOU, how valuable the domain is.

That explains why some domains, which may actually seem to be of no use, get picked up by someone who pays a hefty price for it.

:talk:

that is NOT the only explanation why a domain, that you think is of no use, sells for hefty price.

the domain may sell for hefty price, because the OWNER won't sell it unless THEY get a hefty return for it.

every "domains' usage potential" is NOT obvious, especially to newbies and many times, to the experienced as well.

you have to do your homework!

imo...

 

[alien51]

There are three (3) kinds of pricing in every business deal:

1. Asking Price

2. Bid Price

3. Sale Price

The Seller determines the Asking Price. Whether you are asking for $1 MILLION DOLLARS or a measly $20, it's just an "asking" price. You will NEVER see that kind of money going into your pocket, if the transaction is not closed with a buyer.

The Buyer determines the Bid Price. It's the price he wants to pay for the goods, in this case, the domain. He may be willing, or he may be reluctant, but the Bid Price is his "intention to pay" and not necessarily the value of the merchandise.

The Sale Price is the number in which the Buyer and the Seller agree to exchange goods and money. This number can be the Asking Price, the Bid Price, or any price in-between.

If Buyer and Seller CANNOT AGREE on a Sale Price, then there is NO SALE. Seller keeps his merchandise. Buyer keeps his money. What remains in both sides, is PRIDE.

PRIDE cannot pay your electric bills, nor can PRIDE be used to buy booze. PRIDE is worthless. What you need is a SALE.

 

[accent]

... As it seems all true/steady value domains are taken. The only domains available to be hand reg'd would be ones that have value solely based on the specific buyer.

The pure gold ore is taken. What remains needs filtering. Not for a specific buyer, but for the odds that a buyer will pay for it.

Or is there potential future profits in registering EMD and keyword rich .us or .co domains?

Very strong "NO" on that. There is much more risk and less potential reward. Be aware that it is very easy to fake big dollar sales. The new gTLDs will re-write the lesser extensions. Nobody knows how. One thing seems sure- a lot of people are going to lose money, and a few, mostly those with connections, will win.

Yes, crazy domains sell all the time. The thing is, there are a zillion crazy domains out there and the percentage that sells is extremely small. It is about the odds a particular domain faces. You could buy 10,000 domains. If you sell one for $10,000, even though it is gyiilpohgk.com, you still lose.

You should not be paying $10 for new regs. See the Godaddy coupon code thread - be sure to start at the last page. But you should focus on learning, not buying. Particularly in my first two years, every few months I found a new efficiency or angle that made most of my earlier purchases sub-par. Beginners waste tons of money buying before they learn.

I agree that you are asking some of the right questions. Welcome.

 

[Chris Wright]

you have to do your homework!

This is SO true.
I do research before I even hand reg a name for $0.99.

 

[alien51]

On some occasions, you need 5 shots of Johnny Walker before you hand reg a name for $10.99.

..... and don't get me started about hand regging pot domains.