Sale Price Doesn’t Necessarily Show “Real” Value
I recently won an auction on NameJet, and within a couple of days of changing the nameservers, I had a serious buyer approach me to buy the domain name. After a brief discussion, I shared what I paid for the domain name because it was easy enough to find. To paraphrase his response, it was something like, “Oh man, I would have paid more!”
There have been plenty of times that I have been in the same position as this person. I read about domain names that sold privately or at auction, and I think about how that domain name sold for less than I would have paid had I been involved. This is flawed thinking.
Although the sale price of a domain name is indicative of what the seller was willing to sell it for or what the auction participants were willing to pay, it is not necessarily the “real” value of the domain name.
In the case of the domain name I won at auction, I explained that had the person who inquired been an auction participant, the sale price would have been significantly higher. Although I emerged as the winning bidder, I value the domain name significantly higher than my winning bid, and I would have paid much more had I needed to do so to secure the domain name. I also explained that there probably would have been other participants involved in the auction who would have pushed the price even higher.
Just because you see a sale price at a certain number, it does not mean that is the value of the domain name.
The next time someone tries to negotiate with you based on your purchase price, you should remember this and use it in your defense of your asking price. The sale price of a domain name does not always indicate the real value of that domain name.
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