Last week we mentioned Sedo’s new price suggestion tool and it’s inaccuracy. Well, truth to be told, it’s not really inaccurate! You see, value is not set in stone. There was no thunderbolt and it was not handed down by God.
Domain value is determined by many factors. The two main being the seller’s asking price and the buyer’s need for the domain. Take a sentimental domain name for example, to the seller the domain holds incredible emotional significance which is difficult, if not impossible, to place a value on. The potential buyer will have to pay whatever the seller wants in order to secure ownership of the domain, regardless whether the domain is appraised for $100 or $100,000.
The issue for those who see their domains as short term investments, is finding a buyer with a budget range which overlaps the seller’s corresponding price expectation. But what if a buyer with a suitable budget never knocks on the door? Well, then your out of your registration fees. Not a problem if you only own a few domains, though it could get expensive if you own thousands of domains.
Next article: External factors to determining domain value
