I hate......

[Edwin]

Actually, my instinct (and I've posted about this before) is one of the reasons the UK market lags other major markets such as .de is because there is a much stronger sense of "unfairness" or being "hard done by" here.

In other words, people get so hung up on the "why should I pay £x,xxx to buy something that initially cost £10" issue (in itself a fallacy that I blogged about recently) that they can't see beyond the angry emotional fog to the demonstrable business benefits securing the right domain name would bring their company. In Germany (and many other markets) on the other hand, people seem genuinely more analytical and sanguine - they're able to weigh up the cost of the domain name vs its potential benefits while ignoring the irrelevant "unfair" red herring...

This goes hand in hand with the habit of pointing the finger at anyone perceived as doing particularly well for themselves (and you don't have to go nearly as far up the financial food chain as bankers to see that in action) and to want to "pull them down a peg or two". It's a very British disease!

 

[Brassneck]

I don't think it is because we are "behind" here in the UK.

A .com will open up a global market of searches so it is 90% of the time going to be more valuable than a .co.uk. America's population is also 5 times the size of ours so there are more people fighting for the same number of domains.

.de's probably sell for more because the Germany economy has faired much better than Uk the last few years and again their population is bigger = more demand, same (ish) supply.

I agree on your population points and their economy has performed a bit better than ours but not exactly strong, but the UK does have a very unbalanced secondary market for domain names. Good / Excellent prices at very top end and very little in the middle ground and lower. That doesn't appear to be the case in Germany - 3 times Sedo volume but lower median price.

 

[Marcoose]

3 times Sedo volume but lower median price.

Interesting stat.

 

[Brassneck]

Actually, my instinct (and I've posted about this before) is one of the reasons the UK market lags other major markets such as .de is because there is a much stronger sense of "unfairness" or being "hard done by" here.

In other words, people get so hung up on the "why should I pay £x,xxx to buy something that initially cost £10" issue that they can't see beyond the angry emotional fog to the demonstrable business benefits securing the right domain name would bring their company. In Germany (and many other markets) on the other hand, people seem genuinely more analytical and sanguine - they're able to weigh up the cost of the domain name vs its potential benefits while ignoring the irrelevant "unfair" red herring...

Agree 100 % about the sense of unfairness point. Isn't that quite an obstacle that we now need to overcome? Any ideas how? The perception, for whatever reason, is that 90 per cent of our possible customers think we might be trying to rip them off.

I think you (Edwin) are one of the few people who have genuinely published some innovative research to try to justify the benefits of buying a domain from the secondary market, however despite your sterling efforts very little else exists, especially that might be considered to be truly objective and independent.
Stephen.

 

[Edwin]

To a large extent I just treat it as an "unsolvable" problem (though of course I do lay out the argument so that those for whom "logic" still holds some sway can work through it to the appropriate conclusion).

The smarter folks continue to buy (most without a quibble, though of course some do try and negotiate on pricing) while those who can't see past their own sense of outrage send a seemingly infinite number of variants of the "it's outrageous, fume, splutter" vitriolic emails which, 16 years into my domaining career, I frankly just delete without a second thought.

Life's far too short to let every idiot who comes along ruin your day - especially since the web is the most effective "connect you directly to idiots" tool ever invented

As far as overcoming the obstacle, the single most effective tactic is probably to stick to your guns on domain pricing. The companies that genuinely are buyers will buy - the others were only going to mess you around anyway...

 

[domainseller200]

The companies that genuinely are buyers will buy - the others were only going to mess you around anyway...

I don't agree with everything you say (sometimes bordering on preaching ) but that is a fantastic nugget of information.

I would also say to Stephen / others that it is the same as cold calling. If a buyer approaches you about a domain, they are far less likely to be offended by a price or the actual business model.

If however you email someone out of the blue offering a domain name for sale which would be 'perfect' for them, then I can see why quite a few get hostile and annoyed - a little bit like when a double glazing salesman knocks my door, takes a look at my 3 month old upvc windows, and proceeds to tell me why I should think of getting a quote from them anyway as they are 'perfect' for me.

If you stop and think about the same practises which you do with regards to domain names, and start applying them to other things in ordinary life, you might see why some people get really annoyed and quite hostile at being approached in the first place.

 

[websaway]

Agree 100 % about the sense of unfairness point. Isn't that quite an obstacle that we now need to overcome? Any ideas how? The perception, for whatever reason, is that 90 per cent of our possible customers think we might be trying to rip them off.

I think you (Edwin) are one of the few people who have genuinely published some innovative research to try to justify the benefits of buying a domain from the secondary market, however despite your sterling efforts very little else exists, especially that might be considered to be truly objective and independent.
Stephen.

I can't see where the rip off comes into it, a domain either has a value or it hasn't, there may be differences of oppinion but it should find it's own value.
The problem arrises when trying to sell something to someone who neither wants or thinks he needs it, at any price.

 

[wb]

...but it should find it's own value

You're right, domains should find their own value, but unfortunately I think it's here where the problem often lies and what much of this thread actually relates to (when a seller has deluded expectations).

At the end of the day though, domains are always going to be worth what someone is willing pay for them providing the seller wishes to sell for the same amount. If they don't wish to sell for the amount offered, it just means they're effectively "buying" it from themselves for the amount you're offering (i.e. they could have had the cash instead, but chose to keep the domain). It could be that they're making a wise choice or a poor commercial decision.

 

[Bailey]

...People who value average domains at silly prices...

... enquiring about a .co.uk domain. It's alright - nothing special. The guy wants 5k USD for it. I ask him to explain why the price is so high. He says:

- Upward search trend. Insight shows it's flat year on year.
- "High exacts". 1200 monthly searches is high?????
- $2 CPC - WOAH!
- Brandable name. Any half respectable domain is!

It just makes me wonder what idiots pay these over inflated prices and encourage these people. The annoying thing is I'm pretty sure he's not going to get this price any time soon and in the mean time I'm missing out on starting a viable business.


.....The frustrations of online business I guess.

RANT OVER

Thats interesting that you are dealing with a US dollars seller on the UK space. That tells me that this is an experienced 'Global' reseller your dealing with. (I don't know the domain) And in fairness if he's influenced by the Global/US market I make him/her perfectly correct in asking whatever he believes the domain may sell for.

Domain space in the UK is predominately owned by domain developers and not end-users - and that comes down to a number of historical reasons - so we end up with an individual developers mindset (not all cases but, more so than not)when it comes to buying, or whats considered a market price

 

[websaway]

I would disagree totally - the domains you see reported German (.de) and USA (.com) are far higher than the majority of .co.uk domains sold - pricing isn't the issue at all. It is the same as everything else, the UK is years behind most countries in so many ways, and domains is one of them.

Interesting because I was recently assessing a domain I have VocalCoach co.uk and I was astonished to find an english version vocalcoach.de and a dutch version vocal-coach.nl both domains not in their own languages with sites on them in Dutch and German ( i think ), how progressed is that.

 

[wb]

Interesting because I was recently assessing a domain I have VocalCoach co.uk and I was astonished to find an english version vocalcoach.de and a dutch version vocal-coach.nl both domains not in their own languages with sites on them in Dutch and German ( i think ), how progressed is that.

My German is a bit rusty, but as far as I know there is no difference in spelling between English/Dutch/German for that term (although there is sometimes no space between the words).