Domain name values - true?

[AA_Spark]

To what extent to do you think brokers and domain selling sites suppress true domain name values?

My view.
It seems to me that these middlemen care only to price a domain name for selling it asap and of course, the lower the price the more chance there is for a sale. After many years of this, we now have a history of values based on what buyers have paid, and what they have paid is mostly dictated to, in my view, by these middlemen who are few, large and influential.

[robzilla]

In my (limited) experience the value of domain names is often much inflated rather than "suppressed".

[lucy24]

true domain name values

There's no such thing. A domain name, like most things, is worth what someone is willing to pay. Could be more than what you paid for it, could be less. There is no Kelley Blue Book for domains, no organization of accredited professional appraisers.

[AA_Spark]

"There is no Kelley Blue Book for domains, no organization of accredited professional appraisers."

But we have these middlemen claiming to be effectively that, or close to it.

I realize that the price of something is what people are willing to pay. My point is that the middlemen keep prices down (and expectations) and claim expertise in their values through their self-determined history.

[tangor]

I find that a bit hard to believe. When one sells on commission (or percent) the "middleman" is more likely to push for the higher price as that is more in their pocket at the end of the day.

[topr8]

firstly what robzilla said:

>>In my (limited) experience the value of domain names is often much inflated rather than "suppressed".

secondly what lucy24 said:

>>A domain name, like most things, is worth what someone is willing to pay

thirdly, what tangor said:

>>When one sells on commission (or percent) the "middleman" is more likely to push for the higher price

couldn't agree more with all these statements.

... i would add a question into the mix, how many domains are actually sold through domain brokers? ... personally i think that except for a very few generic words/phrases then there are plenty of alternatives in the unregistered pool anyway and with that in mind, nearly all domain names for sale are grossly overpriced.

personally i have only bought 1 domain (that wasn't unregistered/available) i emailed the owner with a sensible offer and they accepted right away - in this case i should think i offered more than they valued it at, hence agreeing straight away, but i was happy as i personally thought it a reasonable price.

[lucy24]

About those middlemen... I once read an article by a writer talking about literary agents (the people who take 10%* off the top), but the principle is the same. He started out by saying what anyone would say: logically you'd expect the agent to market your stuff to whoever pays best, so they make more money. But in practice, if it's a choice between investing time and energy on a lucrative sale, or grabbing a guaranteed sale for a smaller sum, they'll often go with the quick turnaround.


* This was a long time ago, when 15% was considered outrageous and 20% unheard-of.

[Webwork]

Since most domain sales of any significance go unreported it's difficult to conclude that your assertion is true or even has any weight.

Secondly, since brokers only close deals IFF the seller is willing to sell THEN who is undervaluing domains?

Third, no one is required to decide solely based on a broker's advice. A seller is always free to seek second and third opinions OR to fire their broker if their is evidence of incompetency or collusion.

Fourth, doing deals - ALL deals - is always a matter of horse trading. If money is being "held back" that's just the way bargains, deals, or sales are struck. The seller wants the highest $$$ profit. The buyer wants to buy at the lowest $ price. Shame on him/her who "caves in". Of course, one man's caving in is another man's opportunity, i.e., "sell domain X on the cheap (with one hand) and scoop up domain Y on the cheap (with the other hand)".

What is your proof for your proposition?

[AA_Spark]

I did not make an assertion. I wanted to ask others as to their opinions or perhaps experience.
I can only give my opinion about my direct experience and across the years that I have owned domains, which is all I can look to and anyone else also.

Brokers serve the same role as a domain auction/selling websites, albeit with fewer domains and most likely higher valued ones.
With the exception of highly desirable names, the sales of which are not often publicized, my experience is that there are a few large domain sellers (the names of which are well known to those in this space) and a few large domain sales/auction sites who either price domains to sell asap, or who encourage low pricing for the same purpose.
These owners and domain sales sites give the impression of authority, when in fact no such authority exists because it is all opinion ultimately, but for those domain owners who have a small number of domains or who are new to the game, it is easy to see how they can be led by these handful of high profile operators and accept their idea of pricing.

Yes, each domain owner can demand what they wish, but I have often been advised by these operators to "lower my pricing" to get a better chance of selling. And this lower pricing for domains is what we have been conditioned to accept in recent years and which has been fostered by those who have no real interest in, nor are they experts in true domain name valuation.

(I know there are millions of domains that aren't even worth the registration fee but I am not talking about those in this topic).