MarkMonitor.com Publishes PDF Explaining "Best Practices" for Acquiring Aftermarket Domains

One of the biggest players in the aftermarket domain space lays out the fundamentals of success

[Webwork]

12 page whitepaper (pdf) "Assessing the Value of a Domain": [markmonitor.com ]

Whether you are on the buy side or the sell side (of anything) it's a good idea to be aware of what the major players in the marketplace are thinking.

MarkMonitor IS a major player in the domain space.

Executive Summary

Have you ever wanted to register a domain only to find that it is already
registered by a third party?

Often, the only option is to attempt to purchase the domain, but
determining the necessary budget and likelihood that the owner will
be willing to sell can be a challenge. Domains are intangible and little
else compares.

How then do you determine what a domain name is worth, and more
importantly, the amount of money someone is willing to sell a domain for
(provided they are even willing to sell)? Domain values and willingness to
sell are based on a number of factors, many of which are subjective. Seller
profiles run the gamut from individuals and small businesses (who may
have no idea what a domain is worth), to largescale domain speculators
who view their domains as a lottery ticket. When assessing a domain, a
number of different criteria should be considered in order to provide a
comprehensive look at the possible value of the domain

[NickMNS]

Wow that was a waste of 2 minutes. Nothing but hand waving and vagueries.

[Webwork]

NickMNS, from the very outset their guidance is spot on:

When assessing a domain, understanding the current owner’s profile is essential in
predicting their willingness to sell as well as gauging the expected asking price. Often,
an educated guess on the likelihood of purchasing the domain and general price range
based on ownership is made.

Owner profiles vary depending on organization size and motive. For instance, many large scale
and well-known domain speculators are unwilling to sell below certain thresholds,
which are often higher than the reasonable market value, while others have prices that
are aligned at, or below, market. Sellers have varying temperaments and approaches on
how they respond to inquiries and offers.

When a domain is held by a small business owner or individual, it is important to research
their motivations for registering, as well as who they are and the extent of their business
ventures. For example, through research, it may be determined that the owner has a
business that matches the domain name. From there, additional research can inform a
buyer if the business is still viable and how integral the domain is to the business so that
negotiations start from an informed position.

Leveraging information about the owner is often the most important factor in
determining whether or not to pursue a domain and in setting an appropriate budget.

I can tell you from experience that those who have approached me with an understanding of who I am have been far more successful in a) actually getting a response from me; and, b) actually successfully concluding business with me.

Likewise, at a time when "Yun Ye", a/k/a UltimateSearch was an unreachable man of mystery in the domain aftermarket - a man who went on to sell his domain portfolio for >$175,000,000. - I was able to get a response from him and successfully acquire a number of domains from him (just prior to his sale) BECAUSE I did my homework. That effort included reaching the conclusion that I needed to eliminate all manner of "friction". I offered specific non-BS sums and always offered to wire funds (tens of thousands of dollars) internationally and without the requirement of escrow.

Your dismissive tone suggests that your involvement in the domain aftermarket has been somewhat limited.

OR maybe you simply prefer that people approach you, concerning acquiring your domain holdings, with emails that read "Hey, how much for Mortgage.com?" or "I'm a college student and want to make a website for my econ class . . " or "We're creating a non-profit, don't have funds, but would like Mortgage.com . . "

I receive plenty of emails like the ones I just exemplified, which leaves me wishing that the interested parties read and acted upon on the Mark Monitor . . . vagaries.

[NickMNS]

your involvement in the domain aftermarket has been somewhat limited.

That is correct.

My point is not that this paper is saying anything that is wrong, but it is simply stating a bunch of obvious points (at least to me they seem obvious) and then provides no further insights into their statements.

Example:

When a domain is held by a small business owner or individual, it is important to research their motivations for registering, as well as who they are and the extent of their business
ventures.

This statement does not constitute some great revelation.

That's all.