NameSilo

Why is this domain too expensive?

Labeled as question in Domain Beginners started by Lanky, Aug 2, 2019.

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  1. DomainRecap

    DomainRecap Top Member VIP

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    The e- and i- crowd (although it's getting a bit old school these days for startups) always works best with a single-word. You start putting e or i in front of 2 or 3-word domains and it quickly turns into gibberish.
     
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  2. Spex

    Spex Established Member

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    LiveWell can be used for some many things. Like others have said, for beauty to marketing or for dieting, food, drink, lifestyle, health, etc...

    BeautyMarket on the other hand is pretty specific. You can use it to sell beauty products and that's about it. If the beauty product idea doesn't work, you can't easily pivot to another industry or products
     
  3. DomainRecap

    DomainRecap Top Member VIP

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    Plus, when you hear them...

    LiveWell - "Sure, I'd love to live well"

    BeautyMarket - "Ugh, what do you want to sell me now?"

    A potential beauty-corollary to LiveWell would be something like InnerBeauty, as it has a positive connotation and can be used for a wider range of products and services.
     
  4. As a domain investor you really need to become a marketing expert as well and that will likely take several years of looking at domains and sales.

    BeautyMarket.com - Domain that can sell in the $xx,xxx range. Good Brandable, but has a generic feel making it less appropriate for high-end buyers.

    LiveWell.com - Domain that can sell in the $x,xxx,xxx range. Excellent Brandable, call-to-action, and used in wellness, health, finance, travel, nearly any high-end market.

    The best thing to do, once you have the experience, is to put yourself in the Buyer's point-of-view. If you had a company that was going to make several million dollars a year from a particular service or product, what would the domain be worth to you? You have to be realistic and also compare it to similar domains that are available. For example, when I bought GreatBrand//com, comparable domains were $40,000-$50,000, so I had an idea of what a good deal was. So knowing that, you can't go and put TheGreatBrand.com up for sale and expect to sell it for $50k, because based on other domain availability, it isn't going to happen.

    I found an extremely interesting video on valuation that really every domain investor should watch. The video is on Logo Design, and the focus is on the fees that designers charge and how they vary tremendously. At the low end, designers are charging $500. At the high end, $30,000+ to over $1 million. Very interesting and the concepts directly apply to domains and domain buyers as well.

    I recommend watching the whole video, but if you leave early, make sure you watch the last 20 seconds starting at 36:02.

     
    Last edited: Aug 6, 2019
  5. YourBestTrader

    YourBestTrader Established Member

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    A simple check to test for popularity, competition, commercial intent using the Rosener formula shows:

    Beauty Market = $7,700 valuation
    Live Well = $30,000 valuation

    Obviously, these formulas can't produce exact results, but they are great ways to predict how different domains might sell in relation to each other.

    For a more accurate valuation you'd need to look at around 100 data points, but who has time for that...

    Most of the big boys only use 3 to 5 data points and their intuition from years in the industry.

    My own prefered method is looking at comparables, and the Rosener valuation, and then using those two figures as a good starting point.

    Everyone has their own methods and there is no right or wrong... at the end of the day... just like in the Real Estate industry... the market will tell you what it is willing to pay.
     
  6. ProDomanico

    ProDomanico Established Member

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    Expert advise here.. very appreciated.. :)
     
  7. poweredbyme

    poweredbyme Democrat.win VIP

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    Age factor.
    It's 18 years old.
    Time adds more value to good domains.
    10 years ago you could likely buy it for half of that price.
     
  8. James Rayers

    James Rayers CreativeNaming.com VIP ★★★★★★★★★★

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    Big fan of this domain. Wellness is a massive growth area right now. See: every 'vegan' keyword domain coming up on GoDaddy.

    It was actually owned by GoDaddy before as it was part of a bulk portfolio they bought. They may have been the sellers at the $20K price point listed in sale history. Or more likely it was their bulk buy price and when they sold to the most recent owner it was kept private.

    The most recent owner went bankrupt which explains how GoDaddy got a second scoop selling this on the drop. Amazing the administrators weren't able to renew this as it could have sold for more I think.
     
  9. DomainRecap

    DomainRecap Top Member VIP

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    Like most people, they probably didn't have a clue on the investment/resale value of this digital asset.
     
  10. steven55

    steven55 Upgraded Member Gold Account

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    But one important point:

    On GoDaddy, mostly expired auctions get a lot of bids , attention and price..

    One imp. reason ofcourse is age and backlinks.
    But we are just talking about the value of the name here..

    If you try to sell this domain as a owner even with featured listing on GoDaddy, it won't be that easy with this kind of price .



    Has anybody observed this ?
     
    Last edited: Aug 7, 2019
  11. Spex

    Spex Established Member

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    @steven55 It's the by-product of being in an auction situation. Auctions create urgency because there is at least one other person involved. When you pitch to an end-user or use a featured listing (or juts a regular listing), the end-user doesn't see any competition so they are less likely to act.
     
  12. MrConor

    MrConor Happy Holidays

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    It's a great brand name for a health & fitness site, along with its 18 years. Can see the final offer, easily being around $20K!
     
  13. MadAboutDomains

    MadAboutDomains Top Member VIP ★★★★★★★★★★

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    It's a nice name
     
  14. KTC

    KTC Established Member

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    Good name, but I would say the reason why this website probably gained such traction of GD auctions is that it was the name of a financial company that focused on mortgages based out of my city in Richmond, VA that just abruptly shut down over the past couple of months.

    Check it out on Wayback Machine and Wikipedia.
     
  15. Igor Mironyuk

    Igor Mironyuk Established Member

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    "The .net version of it does have a sale in NB at $1400." - What is NB?
     
  16. KTC

    KTC Established Member

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    NameBio is what Bob is referring to.

    You can use that and dnpric.es to look up public transactions.
     
  17. steven55

    steven55 Upgraded Member Gold Account

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    @Spex.
    But this happens only with expired auctions.
    If you try to run auction for your own domain on GoDaddy, it won't be easy to get such good bids.
    Even if it is a domain as good as we are discussing.
    That's my point.
     
  18. getakash1

    getakash1 Akash Jain

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    domain name makes sense and it is easily understood from its name that it is related to heath and wellness.
     

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