Comments on: Follow Up: What’s a Domain Really Worth? http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth Domain blog featuring domain investing strategy, domain valuation, and domain development commentary from Elliot Silver, founder of Top Notch Domains, LLC. Fri, 10 Feb 2012 00:34:39 +0000 hourly 1 By: Duane http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth#comment-6759 Duane Thu, 16 Oct 2008 09:07:36 +0000 http://www.elliotsblog.com/?p=1227#comment-6759 What is a tool ( Domain ) worth? 1 ton of gold boxt in by a high wall but open roof. 10 guys, 10 shovels and 1 crane. The shovels are for free. What would the crane be worth to you? What is a tool ( Domain ) worth?

1 ton of gold boxt in by a high wall but open roof. 10 guys, 10 shovels and 1 crane.
The shovels are for free.
What would the crane be worth to you?

]]> By: Fred Mercaldo http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth#comment-6756 Fred Mercaldo Thu, 16 Oct 2008 02:07:16 +0000 http://www.elliotsblog.com/?p=1227#comment-6756 The many ways domains, and businesses, are valued is a complex topic. Would you believe that a company I founded that, after 7 years in business, sold for $1.5M even though we were breaking even? It was a property management company that, when combined with a competing property management company, brought an additional $300,000 PLUS net to the bottom line once both operations were combined. Amazing...but the same things are happening in the domain business today...many common deal points. I think Elliot's example is valid... The many ways domains, and businesses, are valued is a complex topic. Would you believe that a company I founded that, after 7 years in business, sold for $1.5M even though we were breaking even? It was a property management company that, when combined with a competing property management company, brought an additional $300,000 PLUS net to the bottom line once both operations were combined. Amazing…but the same things are happening in the domain business today…many common deal points. I think Elliot’s example is valid…

]]> By: Tim Berry http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth#comment-6754 Tim Berry Thu, 16 Oct 2008 01:00:27 +0000 http://www.elliotsblog.com/?p=1227#comment-6754 Thanks Elliot, I appreciate the additional take on this topic. In the end, as several people have said, like anything else, a domain name is worth what someone will pay for it. As we see here, though, and in my previous post, it's hardly a clean orderly market. But then again, these days, neither is any of the more traditional markets (as in AMEX, NASCAC, etc.) either. If it works, it works. Tim Thanks Elliot, I appreciate the additional take on this topic. In the end, as several people have said, like anything else, a domain name is worth what someone will pay for it. As we see here, though, and in my previous post, it’s hardly a clean orderly market. But then again, these days, neither is any of the more traditional markets (as in AMEX, NASCAC, etc.) either. If it works, it works.

Tim

]]> By: Robbie http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth#comment-6747 Robbie Wed, 15 Oct 2008 15:09:39 +0000 http://www.elliotsblog.com/?p=1227#comment-6747 Well said Kevin! I contacted the owner of this name some time ago about broker the name on there behalf and they were looking for $1 mil so at least they have come down in there expectations a little The owner actually owns a few good names but didnt have a clue about pricing the domain they own so I offered to help but never heard anything back from them... Look like they are trying it on there own instead of using a broker like me or kevin or rick etc to help them along the way. There are people out there with cash to spend on names and swot.com is a good but times are hard trying to even close end user sales... Also they own Snob.com which I think is a better name. Regards, Robbie Ferguson-group.com Well said Kevin!

I contacted the owner of this name some time ago about broker the name on there behalf and they were looking for $1 mil so at least they have come down in there expectations a little

The owner actually owns a few good names but didnt have a clue about pricing the domain they own so I offered to help but never heard anything back from them…

Look like they are trying it on there own instead of using a broker like me or kevin or rick etc to help them along the way.

There are people out there with cash to spend on names and swot.com is a good but times are hard trying to even close end user sales… Also they own Snob.com which I think is a better name.

Regards,

Robbie
Ferguson-group.com

]]> By: Kevin http://www.elliotsblog.com/follow-up-whats-a-domain-really-worth#comment-6746 Kevin Wed, 15 Oct 2008 14:25:06 +0000 http://www.elliotsblog.com/?p=1227#comment-6746 The best sales I've had are to buyers who have a specific desire and purpose for acquiring a domain. A couple years ago I sold a 2 worder for a client that he had been trying to sell on his own to other domainers and was not getting any significant bids whatsoever. Most offers he had were $1K range. I did some research and sourced a mid size corporate end user for him in the focused niche of his keyword and got him a deal done at $75,000. He was blown away to put it mildly and didn't even believe the deal was real until the wire came in. The buyer was in the process of expanding their web brands and this domain fit perfect for one of their projects. So the immense value was created by the buyer's need and desire to have it. Thus the secret to doing high value sales isn't just about the domain itself, it's all about researching the marketplace and finding the high value buyer(s) that could benefit most by acquiring that domain and then putting the buyer in a position of wanting to buy. Most domainers try to sell their domains for enormous prices on their own and end up spinning their wheels because they don't understand the core process of this secret, that ultimately it's the buyer selling himself not you. :) The best sales I’ve had are to buyers who have a specific desire and purpose for acquiring a domain.

A couple years ago I sold a 2 worder for a client that he had been trying to sell on his own to other domainers and was not getting any significant bids whatsoever. Most offers he had were $1K range.

I did some research and sourced a mid size corporate end user for him in the focused niche of his keyword and got him a deal done at $75,000. He was blown away to put it mildly and didn’t even believe the deal was real until the wire came in.

The buyer was in the process of expanding their web brands and this domain fit perfect for one of their projects.

So the immense value was created by the buyer’s need and desire to have it.

Thus the secret to doing high value sales isn’t just about the domain itself, it’s all about researching the marketplace and finding the high value buyer(s) that could benefit most by acquiring that domain and then putting the buyer in a position of wanting to buy. Most domainers try to sell their domains for enormous prices on their own and end up spinning their wheels because they don’t understand the core process of this secret, that ultimately it’s the buyer selling himself not you.

:)

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