I have been involved in the domain industry for over 7 years now and I have yet to figure out a rhyme or reason behind the vast majority of reported domain name sales and the prices paid for the domains. Some random terms to you or I can sell for tens of thousands of dollars. Random term to you or I doesn't always mean random to them?
I know when I get offers on domains, I often pull the first number in my head and simply counter offer with that! Well, that is pretty "random", so I guess it fits the "no rhyme or reason" bill also.
- It takes two
- Want
- Need
- Funds
The main four things that come to my mind that can result into a domain name sale that leads to a head scratching moment when you see the domain sale / price of many reported domain sales.
Fininacial status of the current domain owner takes a big stand in the above for things that come to mind. If the domain owner selling the domain really doesn't "need the money" like many of us DO, then it's a lot easier to reach for the sky and really ask any random number for your average random term domain name. A domain sale of $2K for most is a nice boost in income, but $20K is more worth the time and effort for others.
Quantity! Domain name owners have a large range of quantity. Some own only a couple domain names but others own thousands or even tens of thousands! There are even a small number that own hundreds of thousands of domain names!
The more domains you own, the more bullets you have in the gun! The more bullets you have in the gun, the more likely you will hit the target from further away….. Random domain name + random price that would leave you wondering "why don't my domains sell for that much" at some point will match up.
The more finacially secure you are (the domain seller) and the more domain names you own, will often lead to the head scratching prices paid for a lot of reported domain name sales, but you also have to ask for the price.
Funds, Timing, Asking, Ability, Luck
Seeing a sale of "AuntSally.com" for $17,500.00 or Sinomax.com for $38,000.00 or iEagle.com $15,360.00 (sale price references) is very likely not the common every day offer / sale that YOU will see. Sometimes, a sale like this IMO, could be a once in a lifetime sale!
Want, want, want!
As a domain seller, you really hope there is a lot of "want" when an interested party comes calling for your domain name. Want almost always overrides "need"! The price becomes a little blurred when somebody really wants something and clearly this can play to your advantage as a seller. Yes, they still need the funds to meet the want and you still need to ask for that higher than your average domain sale price…
So is there really a rhyme or reason behind sales prices on domain names? Often times there are. It could be search volume, PPC factors, the domain is making x simply parked, similar sale comps and many, many more! The reality is, many domain name sale prices are just random amounts agreed upon by two individuals. A sale price doesn't always mean the domains "worth" what it sold for. There is often a need (many times just a "want"), funds have to be available, and it takes two to make it work. Is the price right, crazy head scratching high to you or "cheap" to some… very likely. We are all different, financial statues are different, every domain is different.
So when you see a domain sale and the price what the domain sold for, you will likely be scratching your head just like me from time to time. You can just shrug your shoulders like me and always wish you owned the domain and made the same deal the seller did because there isn't always a rhyme or reason behind the price paid. It can often be luck and several ducks lining up in a row.