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Domain summit 2024

Do you know the price of your Domain?

shahed_sajid

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You may have some understanding of the value of your domain. But do you know the price of it? You may not. In fact, no one can say the exact price of a domain. No value generator tool aka appraisal tool is correct.

The price of the domain depends on its end users. End users actually decide the price of a name.

In several types of domains, some domains are called liquid domains which can be sold instantly in a certain range if desired.

This range includes 3C/4C domains, 3N to 5N domains, correct generic dictionary words. Only these kinds of domains have an instant resale value.

There is also a resale demand for English simple two-word domains which can usually be sold regularly for low to mid two-figure USD.

Let's come to the brandable domain. Brandable domains are difficult. This kind of domain has no value unless it has an end-user. For instance, do you ever think to buy a name like ‘google’ before it became a well-known brand? In most cases, you may not. But think about the value of that name after its branding. Now, you can’t even estimate the price of such a domain.

So, for the sale of a brandable domain name, you usually have to wait a long time to get the right end-user who also thinks the name also is brandable and he/she can use it for his/ her business.

You can buy 5 letters or 6 letters beautiful, melodious domains but no one can say when you will be able to sale that name.

Domaining is an investment industry. It is not that kind of business that you can buy it in the morning and sale it in the afternoon or the next day. Patience is the key in domain investment. The more patience you have, the more success you will get. There are many people who sell 2/3 of the domains a year, and they are happy with this.
Remember the thing, Quality over Quantity!

How do you set the price of your domain??
 
Domain summit 2024

Biggie

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You may have some understanding of the value of your domain. But do you know the price of it? You may not. In fact, no one can say the exact price of a domain. No value generator tool aka appraisal tool is correct.

The price of the domain depends on its end users. End users actually decide the price of a name.
Hi

your post has some valid information in general...
however, the price of a domain, is set by the owner, not the end-user.

i've read many newbies say the same thing > that buyer determines price.
but if that were true, then there wouldn't be many high dollar sales.

also,
"price and value" may not be equal.
as a domain may sell below it's true value or above what it's really worth.
there is also "potential value" and "intrinsic" value, and if you don't know the difference -
then you may price it below those respective values of worth.


Let's come to the brandable domain. Brandable domains are difficult. This kind of domain has no value unless it has an end-user.
Hi

that is not true, in entirely.
as brandable domains are often resold to other domainers, in the 3 > 4 figure price ranges.
for evidence, you can search past sales of them to see where they reside today.

Domaining is an investment industry. It is not that kind of business that you can buy it in the morning and sale it in the afternoon or the next day. Patience is the key in domain investment. The more patience you have, the more success you will get. There are many people who sell 2/3 of the domains a year, and they are happy with this.
Remember the thing, Quality over Quantity!
Hi

i pretty much agree with above,
though in the past, i have purchased domains in the morning and sold them a few hours later.
many 3 character .com, 4 number and 4 letter.com that are now selling for $$$ > $$$$ > $$,$$$ price ranges, could be hand-registered at drop times, back in the day.

How do you set the price of your domain??
Hi

i think the question above, is contrary to quote below.
the price of the domain depends on its end users. End users actually decide the price of a name.
just saying,
if you believe that end-users decide price, then the question becomes moot.

still, to answer the question
i set prices based on a variety of factors:
traffic, ppc earnings, keywords, intrinsic value, offers, etc

price can also be affected by one's "need to sell" versus whether they "have to sell".
if you have to sell to maintain the portfolio, then one may consider lowering price.

if one doesn't need to sell, to maintain the portfolio, then price will be firm or even increased... depending on the actual domain and who owns it.

and..... "who owns it" is also a factor in pricing, as they may be able to get a higher asking price for the same domain, than one who may have less knowledge, contacts, or notoriety in the domain game.

imo...
 

shahed_sajid

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the price of a domain, is set by the owner, not the end-user.
Hi, my thought while writing this was If the buyer doesn't want to pay as much as the seller wants then the seller has nothing to do instead than comprising this price as per buyer's WTP. A seller's target is to sell and usually, buyers get options to choose from. Thus, the buyer has the upper hand.
But the name is absolute premium and has many buyers then it's different, the seller has the upper hand and negotiation price. So, both are true in different cases IMO.
"price and value" may not be equal.
Yes, they are not the same. But are related. More valuable domains get more price. In market, different deals can be made but this is true in general I think.
as brandable domains are often resold to other domainers, in the 3 > 4 figure price ranges.
Somehow I just made a mistake here. Totally agree with you. I have seen many brandable domains resold in forums and twitter.
 
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shahed_sajid

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still, to answer the question
i set prices based on a variety of factors:
traffic, ppc earnings, keywords, intrinsic value, offers, etc

price can also be affected by one's "need to sell" versus whether they "have to sell".
if you have to sell to maintain the portfolio, then one may consider lowering price.

if one doesn't need to sell, to maintain the portfolio, then price will be firm or even increased... depending on the actual domain and who owns it.

and..... "who owns it" is also a factor in pricing, as they may be able to get a higher asking price for the same domain, than one who may have less knowledge, contacts, or notoriety in the domain game.
Hi,
I had fair understandings of this part. Thank you to make me more clear.
 

Biggie

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Hi, my thought while writing this was If the buyer didn't want to pay as much as the seller wants then the seller has nothing to do instead than comprising this price as per buyer's WTP. A seller's target is to sell and usually, buyers get options to choose from. Thus, the buyer has the upper hand.
But the name is absolute premium and has many buyers then it's different, the seller has the upper hand and negotiation price. So, both are true in different cases IMO.
Hi

if the buyer doesn't want to pay asking price , then the seller can pass or decline what the buyer is offering.

though a domain owner may have the name available for sale, any options like payment plans, renting or lease to own options, are mainly presented by the owner... unless the buyer asks for such options, as an alternative to a lump sum payment.
therefore, buyer does not have the upper hand.

even in a negotiation, where sellers asking price was negotiated to a lower amount, the buyer still did not set the price for the domain.... because the owner agreed to sell for less.

additionally, the smart sellers typically price their domains higher, in anticipation of a negotiation,
so that when an amount is agreed to, then the buyer feels like they got a fair deal.

imo...
 

shahed_sajid

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if the buyer doesn't want to pay asking price , then the seller can pass or decline what the buyer is offering.
Hi,
This is true when the owner has no need to sale. That can happen when he/she doesn't need the specific money for living or have a large portfolio with lots of sales options.
But think about a domainer who actually needs that money or having a small portfolio with a few options. And in industry, I think they take the larger portion. In this case, IMO, the buyer can play the superior role.
 

amplify

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You may have some understanding of the value of your domain. But do you know the price of it? You may not. In fact, no one can say the exact price of a domain. No value generator tool aka appraisal tool is correct.
I know the price of the domains as I set the price, or agree upon a mutually beneficial price. The buyer has no say in what this price is unless they open a dialogue to negotiate. However, wherever we land in negotiations are always up to me. I can keep a name another 5 years longer.
The price of the domain depends on its end users. End users actually decide the price of a name.
They only decide whether to pay my price or not.
You can buy 5 letters or 6 letters beautiful, melodious domains but no one can say when you will be able to sale that name.
There's nothing that says you can sell any name. Time is the only thing working against you in domain name investing.
Let's come to the brandable domain. Brandable domains are difficult. This kind of domain has no value unless it has an end-user. For instance, do you ever think to buy a name like ‘google’ before it became a well-known brand? In most cases, you may not. But think about the value of that name after its branding. Now, you can’t even estimate the price of such a domain.
This is where I disagree. I'm on DropCatch quite often and have gone back to lost auctions of brandables in the high $XXX/low $XXXX range where SquadHelp is linked to the winning number. If they're going to pay this, their business would suffer if they haven't made sales, especially at the prices they set (BIN) to profit.
This is true when the owner has no need to sale. That can happen when he/she doesn't need the specific money for living or have a large portfolio with lots of sales options.
Nobody should ever get over their neck in domain names. First of all, you need to sit down at the beginning of your investing journey to know the exact number needed by year-end of year one and at perhaps year two to understand your minimum requirements will be. This number can be applied to domain name renewals as well as acquisitions. Soon as you're through this point, money for a living should be somewhat moot, otherwise, you may have to reevaluate your strategy as it's not leading you anywhere good.
 

Biggie

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Nobody should ever get over their neck in domain names.
Hi David

That is an excellent point!

over the years, i've seen where new domainers will go and register a few hundred domain names, which were acquired on the basis of appraisal tool results.
then, they find out how hard it is to sell them.
they assume just because they list them everywhere, that somebody is just waiting to buy them, at inflated prices.

those assumptions come from the hype of reported domain sales,
where folks just see the money, but don't see the effort, or research, behind the owner acquiring that name in the first place.

learning how to buy the right domains, takes time.
and many aspiring domainers just don't have the patience.
flip, flip, flip.... is all they know.

imo....
 

shahed_sajid

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Hi,
They only decide whether to pay my price or not.
Thanks to both of you. Now I feel more powerful as a seller.
Time is the only thing working against you in domain name investing.
That's really true. But I have tried to say that, if the name is generic you have more chance to sale it faster than a brandable. Here, at least you get some idea who can be your buyer. More chance to get outbound sale also. And I know nothing is absolute.
at the prices they set (BIN) to profit.
I have names in SH, hope I will get some sale before renew time comes.
it's not leading you anywhere good.
Thanks. I'm aware of it. And I don't buy domains that I can't afford to keep for at least a couple of years.
 

shahed_sajid

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Hi,
go and register a few hundred domain names, which were acquired on the basis of appraisal tool results.
Thanks for sharing your thoughts.
I am pretty much lucky that I never had to hand-reg or buy names on the basis of the price of appraisal tools or just on hype. I have got a good mentor here to help me with ideas and knowledge.
don't see the effort
This sometimes becomes supernal. I wonder how people keep their patience at such a level. Some posts from different domainers amazed me a lot. I am a learner and always will be. As I am here for investment, as fast as I can learn to be more patient will help me to get success from domaining.
 

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