DomainNameWire.com just reported the sale of Soci.al for $50,000. Back in June of this year, the registrant of Soci.al opened a thread in the appraisal section at NamePros.com after learning of the possibility of the multi million dollar sale of Social.com. Following a few responses to the thread, registrant (NP member “indam”) mentioned that he had already turned down a $5k offer. The majority of responders to the thread felt the $5k offer was tops he would ever receive for the domain. Many even considered the registrant crazy for not taking the offer immediately.
Most responses (even from long time members, who are also established domainers) priced the name at low $x,xxx, citing that domain hacks are not very easy for the general public to remember and are tough sells to end users. Indam said more than once in the appraisal thread that he was very comfortable rejecting the initial offer. He did have some support in the thread with a couple members saying they didn’t feel he passed up a once in a lifetime opportunity and it may be a gamble that pays off. This ‘cracks’ me up, in a response on the appraisal thread one NP’er said a $xx,xxx sale was attainable to which another member responded:
WTF?? You are smoking crack right!!??
take one of those x’s off and you may be right.(low to mid)
Sorry “Firefly” you opened yourself up for that one. 😉 My point is that domain appraisals are pretty much pointless. You’ve heard it a million times and I’ll repeat it again – a domain is worth what a buyer is willing to pay. Open up the DNJournal sales archive – you’ll see thousands of domains that have sold for $x,xxx over the years that if appraised either by a ‘professional appraisal’ company or on a forum would have received a very low or ‘worthless’ appraisal.
As a pure play domainer your job is not only to find domains you think are valuable but when offers come in you need to be able to gauge the purse size and value that the name has to the company making the offer. If you’re into flipping domains for quick profit than counter offering is risky but if you’re buying names for the long term and higher payouts you need to be comfortable turning down offers, asking questions, counter offering with a high price or not even responding to initial inquiries.
Congrats to the seller of Soci.al. He had his mind set that he would not consider anything below $20k, he also shared a few tips at the end of the thread on how he went about marketing the name after receiving the initial $5k offer. Interesting to note, the seller of Soci.al also owns the domain hack Port.al.