discuss What’s the Gold Standard for a successful domain sale?

[EliasDom]

Hi everyone,

It seems like everyone has a different opinion on what a good sale actually looks like in today's market.

For some, selling a domain for $500 is a solid win, while others feel that anything under $2k is letting an asset go too cheap.

I'm curious when you're looking at a standard 2-word .com, what's the price point that makes you say 'Yes this was a successful deal'? Do you judge it by the total dollar amount or is it more about the ROI relative to what you paid for the name?

Looking forward to hearing your perspectives!

 

[bmugford]

Hi everyone,

It seems like everyone has a different opinion on what a good sale actually looks like in today's market.

For some, selling a domain for $500 is a solid win, while others feel that anything under $2k is letting an asset go too cheap.

I'm curious when you're looking at a standard 2-word .com, what's the price point that makes you say 'Yes this was a successful deal'? Do you judge it by the total dollar amount or is it more about the ROI relative to what you paid for the name?

Looking forward to hearing your perspectives!

The math with domain investing is very different from other fields.

Inbound sell-through rates can be 1%-2% (or lower) a year for quality domains, priced at realistic end user prices.

You need high margins on the domains that do sell to cover the ones that don't sell.

Or, you need a much higher STR than standard.

Brad

 

[Eric Lyon]

Hi everyone,

It seems like everyone has a different opinion on what a good sale actually looks like in today's market.

For some, selling a domain for $500 is a solid win, while others feel that anything under $2k is letting an asset go too cheap.

I'm curious when you're looking at a standard 2-word .com, what's the price point that makes you say 'Yes this was a successful deal'? Do you judge it by the total dollar amount or is it more about the ROI relative to what you paid for the name?

Looking forward to hearing your perspectives!

I don't think you can justify a successful resale of a domain based on the ROI or the total dollar amount alone. Not all 2-word domains are created equal (Regardless of extension).

While pricing 1 2-word domain at say $10k might be in line with market value and generate inquiries (Counter offers), another random 2-word domain priced at $10k may be priced way above it's niche market value and never get any inquiries or counters.

There's a lot more to evaluating a domain for pricing.

Here's a public evaluation of a domain to give an idea for different value factors: https://www.namepros.com/threads/opioid-domain-appraisal-opioid-com.1353641/#post-9417414

And you may also find this article on how to determine liquidity/illiquidity interesting: https://www.namepros.com/threads/so...than-any-other-registrar.1361289/post-9446961

I wish you the best in your domain investing adventure!

 

[EliasDom]

The math with domain investing is very different from other fields.

Inbound sell-through rates can be 1%-2% (or lower) a year for quality domains, priced at realistic end user prices.

You need high margins on the domains that do sell to cover the ones that don't sell.

Or, you need a much higher STR than standard.

Brad

Thanks Brad. But with that 1% STR, the real challenge isn't just the math it's the selection.
How do you distinguish between a domain that's worth the high margin wait and one that's just a renewal trap draining your budget?

 

[bmugford]

Thanks Brad. But with that 1% STR, the real challenge isn't just the math it's the selection.
How do you distinguish between a domain that's worth the high margin wait and one that's just a renewal trap draining your budget?

There is no easy answer.

That is why so many people fail in this field.

Brad

 

[EliasDom]

I don't think you can justify a successful resale of a domain based on the ROI or the total dollar amount alone. Not all 2-word domains are created equal (Regardless of extension).

While pricing 1 2-word domain at say $10k might be in line with market value and generate inquiries (Counter offers), another random 2-word domain priced at $10k may be priced way above it's niche market value and never get any inquiries or counters.

There's a lot more to evaluating a domain for pricing.

Here's a public evaluation of a domain to give an idea for different value factors:

And you may also find this article on how to determine liquidity/illiquidity interesting:
I wish you the best in your domain investing adventure!

Show attachment 290553

Thanks, these are great insights. I see your point, not all 2-word domains are created equal, and it really comes down to the specific niche. I'll dive into those threads, definitely a lot to digest.