crazy valuations!?!?

[johnellis]

Quite a lot of opinions!!!

I get it, basically the domain is worth what someone wants to pay for it, the seller doesn't really know what that is (in some cases) but say if i was loaded (which im not) and i had a really cool idea (which i do) and i was set on that name, id probably pay it, which is why that domain will stay at that price!

Yep your right Edwin, it's worth something because I asked BUT thats not to say it's worth THAT much

Fair enough they own this name so they can say 10 or 100 mil if they want, im just pee'd off they want this much when a registrar wants $10, you've got to admit, when you think of a good name and it's taken it's really grips your sh## especially when it's not being developed on, and it will carry on gripping your (and my) sh##, thats life

Guess what though, ive thought of another name and ive got the .com, .co.uk, .net, .org.uk, .org, .biz and more on the way! im just glad i didnt post the name here. FEW!

And another thing, why do some domainers not budge? probably because they've held out for their price, and got it!! damn im playing in the wrong field!!

 

[Edwin]

Fair enough they own this name so they can say 10 or 100 mil if they want, im just pee'd off they want this much when a registrar wants $10, you've got to admit, when you think of a good name and it's taken it's really grips your sh## especially when it's not being developed on, and it will carry on gripping your (and my) sh##, thats life

No, it's par for the course in our industry.

This is particularly relevant:
http://www.webmastering.co.uk/domain-names/deconstructing-domain-name-industry-math/

 

[Bailey]

Edwin, as always your spot-on

Don't you just love those that work from 'traffic analysis' alone. And probably the biggest reason '.co.uk' sits as low as it does in terms of global perspective,
#
TheDon,com gets not many hits - No you can't buy it for $200 know matter what your analysis tells you

 

[Bailey]

PS johnellis, If only it was as easy,

Good domain investments (today) are just a (hopefully educated) bet on tomorrow. It very easy to look back and see the "domain curve" including the initial peaks. And say, anybody could see that coming - the key too value is this question and its obvious follow-ons,

From my (a market perspective) can I replicate the meaning/wording/appeal (with ANY other domain) - with market my market/qualifiers inplace ??

are my two words better than your three - or viz-a-viz ??

look for (GOOD) substitutes to convince yourself not to buy - if they available , go to bed happy that you didn't waste your money

If you can, - look to steer away from buying - unless it's a .com that clearly shouldn't be off the radar (ie, .net/.org/ etc etc taken )

If it really is worthwhile - you'll come back to it time and time again anyway

 

[philiporchard]

This is why you don't value the domain based on what someone is willing to pay

The context
We'd been in contact over a domain and I'd indicated that I had decided not to develop but sell instead. They'd expressed some interest in the domain and the price. They aren't dominers on this forum.

My Email:

Dear ………….,
I'd sell domain-name.co.uk for £2k.


Their reply

The domain name isn't worth a great deal to us. In order to measure the goodwill component it would be useful to know how many page views a month you're getting.
Although our reach is impressive our budgets are small, and as a charity-funded undertaking we have to keep every expenditure proportionate.

I was thinking of £100, which would save you the ongoing cost of registration.

----------------------

I certainly don't get offended by replies like that - but I certainly don't value domains based on a what I can sell for at any given moment.

 

[Edwin]

Thanks, Philip. I'd forgotten the "willingness/ability to pay" chestnut when I was putting together my blog post. I'm going to add something about it now.

 

[Bailey]

Actually they are lovely to get Phil. It's nice to get a feeling that somebody has put some effort in to their contact - I certainly put effort and Hopefully understanding into a sales reply.

Slightly off-track How about the idiots that think two words - is one too many, in their introduction/offer/sign-of (still says a hundreds of dozens unspoken words though)

 

[mojoco]

"I was thinking of £100, which would save you the ongoing cost of registration."

They are doing you a favour Phil !

Haha, must be their charitable nature !

 

[domainseller200]

Starting at $150 is a mega-lame move

This is the best advice to anyone who is serious about making an offer on a name they REALLY want.

I get a few unsolicited emails a week from people offering £50-150 on some of my names, and I don't even respond to them.

Whenever I make any offer on a name I really want, I NEVER low ball as I know the exact same thing will happen to myself and makes the whole thing a waste of time for everyone.

 

[julian]

so if its not a generic word it must be a brand/made up word - what was the domain - I want to know what a 250k domain look slike these days..

I had a similar thing happen.

Contacted the guy, he said he wanted $250k for it (2 word, not generic, not searched for). I'd just bought the .co.uk and another domain for £250 total.

6 months down the line there's a parking page for it accepting offers above $20k.

I'm still waiting

 

[Brassneck]

I respond to all offers - you never know where things will end up so don't see any value in not replying just because you might be offended by somebody's offer.

Last few weeks I have sold plenty in the low to mid XXX range. Maybe I could get 4 figures for some if I was really lucky but I would rather have quick sales and a constant stream of income. I still get an annual return (including parking revenue) of about 400 per cent on domain holdings (accounting for costs of acquiring and registration fees) so I'm fairly satisfied with that.

Stephen.

 

[domainseller200]

I respond to all offers - you never know where things will end up so don't see any value in not replying just because you might be offended by somebody's offer.

Last few weeks I have sold plenty in the low to mid XXX range. Maybe I could get 4 figures for some if I was really lucky but I would rather have quick sales and a constant stream of income. I still get an annual return (including parking revenue) of about 400 per cent on domain holdings (accounting for costs of acquiring and registration fees) so I'm fairly satisfied with that.

Stephen.

When someone offers me £50 for a name I paid £10,000 for, something tells me that it isn't going to get very far.

 

[Brassneck]

When someone offers me £50 for a name I paid £10,000 for, something tells me that it isn't going to get very far.

Fair enough - but I think more than 99 per cent of the offers we get are for domains which were free to reg in the early days or drop caught.

 

[Bailey]

so if its not a generic word it must be a brand/made up word - what was the domain - I want to know what a 250k domain look slike these days..

Thats what makes some of us happy with our 'Domain connivances' If you arent getting at least a couple of requests a year - maybe time to accept marketing just isn't in your tool-box

 

[websaway]

I think one of the greatest attributes to confusion with domain values in the UK is the use of org.uk and even me.uk for commercial purposes. I notice some bone fide profit making companies set up with org.uk domains, and this has probably evolved through bad advice, sometimes the blind leading the blind, but not always so. Some companies are getting so lost in the ambiguity of the whole internet process that they are losing site of long term goals and sacrificing their image for what they believe to be a short term benefit. Unlike building a house, whereby there are stringent rules to adhere to, when someone builds their online identity they are at the mercy of the people who set it up for them, who can pretty much do as they like, and do.
A £5 domain name and a £10,000 website.
Now we are even seeing companies being advised to use the colombian url.

 

[foz]

Had the head of operations of Stihl (UK) make an enquiry recently, quoted £5K. They came back with £250, was told I was living on another planet. The craziness is on the buyers side too.

 

[websaway]

Had the head of operations of Stihl (UK) make an enquiry recently, quoted £5K. They came back with £250, was told I was living on another planet. The craziness is on the buyers side too.

Firstly, you are living on another planet, it's the planet future, the same planet you were living on when you registered the name some years ago.

I would say you have a potential 2.5k sale.
My reasoning is this: The name must be at least fairly good, otherwise they would not have offered even £250.The company want the name, they must because they offered £250. You are asking 5k which is above their valuation or budget. If they are serious then the £250 is an opening gambit and therefore they will increase their offer towards your valuation. If you think your name is worth 5k taking into consideration we are at the bottom of a recession and things will improve over the next 3 years, you can afford to hold out for more money and you have lost £250 but they don't have the domain they wanted and you do.
Another litmus test is, would you buy the name yourself as an investment if it was on the market at £250, if you would it's a no brainer.

 

[foz]

Stihl's marketing budget would be in the millions (recession or not).

Their max was £500. I sensed contempt and feel they won't be coming back, that's fine by me.

The problem with Corporates is they are just run by employees and they are forever referencing these type of purchases to their own position in salary (wages).

 

[Edwin]

A £5 domain name and a £10,000 website.

or a £5 domain name, a £10,000 website and a £100,000 marketing budget.

It's like building a pyramid upside-down and then expecting it to be strong and stable!

 

[damion]

This needs saying; the selling is the one who decides a value, not the (potential) buyer.

Todays buyer may value it a lot less than next months buyer. But only the seller decides if a deal will take place. The seller has the power in a deal - the buyer has the option to meet the sellers valuation....that's when a deal is done.

A buyer cannot make a deal happen - a seller can.

Bingo!