Priced by Unique/Singular Attribute

[Skinner]

I was just chatting to an end user in a gym over some iron and he was talking intrinsic value vs domainers value.

For an idea of what we was talking about...

I bought a picturehostdotcom style .com while ago, other .coms of very similar make up was selling around very early x,xxx, however this one had an I prefix and matched the apple ideology of names. so had ipad/ipod/iphone possibles as a future apple product.

So based on how much money apple had to spend they in their coconut decided if apple wanted this domain they would pay at high x,xxx.

I have no doubt they contacted end users and failed so they posted it on namepro still with the goldenapple x,xxx price even the name without the i prefix was on sale for mid x,xxx.

Anyway this was the sorta thing we was talking about, and the issue he had with buying the names he wanted.

I got to thinking is it just me or is there alot of this sort of pricing on acorn on at the mo where prices are based on a single potential attribute (which has prob been hit n failed) rather than a realistic domainer market value?

I appreciate you can sell you names for whatever blah blah but still.

 

[Bailey]

I'm not a 100% sure of your drift.

Are you saying he see's value in the 'I' and 'e' prefix regardless ?. The thing is (to my mind) you can attract buyers with those prefixes outside of Apple providing the wording (or preferably single word) has a strong relationship with either I for internet or E for electronic. There's certainly no point in seeing them outside of that scope

 

[Skinner]

No not really.

In the instance of the domain I bought way back when, the seller determined that to 1 particular entity this domain was worth X amount because that entity could use in line with its current products.

They then proceed to try and sell it to every other entity (after it probably failed to sell to the original entity) based on the fact it could be worth so much to 1 person. Meanwhile the market says the domain is worth Y price.

It would be like me registering BaileyDomains.com, and speculating to YOU its worth X,XXX, so I'll try and sell it to you for x,xxx, get no reply so I try and sell it to Admin and PoshTiger for x,xxx purely based on the fact of its value to you and no one else.

I'm not doing a good job of explaining this.

Edit:
It maybe just me, but one of the few people who I noticed hasn't done this is Laura at Millionaire her price list is based on the market values rather the golden goose price. Probably just me but this end user was saying the same thing, and it dawned on me its happened quite a bit on here of late.

 

[Bailey]

Now, I understand where your coming from.

Fools Errand - Is the short answer. I'm sure there's mindsets out there that think like that and I've no doubt competitors (Themselves) may choose to register competitive (spoiler terms) in some industries. However, to try and make a third party business proposition out of it , the mind boggles.

And if you tried to use "the said term" in some unsavoury way, well i'm sure that would be like nailing your own coffin

 

[Aiden Roberts]

I really wish I knew what you two are talking about because it sounds interesting.

 

[julian]

2 years ago someone offered me 5k for ipaper.co.uk - maybe I was I fool for not to taking it

I'm not a 100% sure of your drift.

Are you saying he see's value in the 'I' and 'e' prefix regardless ?. The thing is (to my mind) you can attract buyers with those prefixes outside of Apple providing the wording (or preferably single word) has a strong relationship with either I for internet or E for electronic. There's certainly no point in seeing them outside of that scope

 

[Skinner]

Just to clear this isnt about any particular domain and def not about the recent mcdonalds apple pie name.

Ill post an example using one of my own names later as I dont to rubbish anyones more about the mentality being a barrier to.a.sale.

 

[Skinner]

Right example time...

A while ago I a bar opened in my hometown called SKone then another business opened called SK1, then I started seeing Vans for Solutions SK, SK is my area code, and SK1 is the town centre. So while scanning drop lists, I noticed a popular town postcode, so I thought having that.

Once it was booked with the 2 main catchers of the day, I made a list of end users. One of them was a ltd nightclub, with a healthy profit margin and a long history who use postcodeclub.co.tld as their website. Next is a cafe/greasy spoon, and lastly a sunbed shop. At first glance you think nightclub, easy money, they are called postcode, they have money and their website is postcodeclub.co.tld and I have postcode.co.tld.

Now lets assume I try the night club (I never have) and I think they are making a million+ a year, so I'll go £10,000. The place never answers my letter or email, I determine the cafe doesn't need a website and the tanning place wouldn't pay much so I'll go sell elsewhere now the golden buyer is out the window.

Now if was unique name with no comparables then all good but lets assume like my postcode there are many equally sized towns with a postcode with multiple businesses using the postcode in the name. Several have sold and a quick search (imaginary) shows that of the last 10 postcodes went for £100-250 MAX, so the market decrees thy t'internet real estate is worth low XXX.

Now when you come to post on acorn do you post a little above proven market value hoping someone wants it and be prepared to drop a little and negotiate or do you come in believing said big ticket buyer will pay X, so I'm selling at X.

The only price justification is that 1 particular buyer (who may or maybe have been contacted) has deep pockets, so I price it for them rather than for the average domainer or business.

I still don't know if I have made the point well, but the end user has money and this was the gist of the convo, where his research leads to an average price of comparable names, but the one he wanted has a glaring great big cherry buyer (who in my end users words would have prob already approached if they wanted it) so it was priced out of his bracket.

 

[Bailey]

Well I was going to leave this thread alone - and let someone else try to interpret your thoughts. But, it has got me intrigued so I'll stay with it.

I think I may have now just about got the gist of it., But there does seem to be some confusion about who is the first, second, third person/entities and their opinion in the way the question is worded.

What I've picked out straight away though is the focus on a Single (potential) buyer dictating the 'potential' price for everyone -- Well that 'to my mind' that doesn't make any sense if you want to sell domains.

It reads to me that an 'owner' of a certain domain has "Pie-in-the Sky" aspirations, that probably never will be realised (the sort of mistake I would expect from a newbie to domains)

To focus on your example - The said Club owner of the SK1Club domain probably wouldn't want SK1 beyond a certain value because his more than happy with the focus that the domain with 'Club' attracts - Sure he may 'Like to have' SK1 (It would look nice) but it isn't necessary. for his business. Lets face it he sells most of his tickets on the door, not on-line

The problem that you come across frequently in domain circles is domainers seeing themselves as if they were the owner/operator of their target buyer. i.e., Putting their value on a domain as if they where in the shoes of the potential buyer. Big mistake, they talk as if they know the business of their potential buyer, they know his business better than him because they're a domainer.

To be talking about the kind of 'multiples' you mention just because of one potential buyer also leads me to the conclusion that this isn't a domainer with his head screwed-on.

I personally hold quite a few (read lots) of domains where companies have since registered their Company name the same (some very large) but that doesn't change the intrinsic value of the domain I hold.

I will add you can take the Buyer/value aspect in different ways depending on the exact circumstances (i.e. If it was a .COM) and many other potential inputs. But anybody that sees a domain value based on his very best buyer Scenario is living in fantasy land

 

[Skinner]

Worded better than me but yeah thats the idea, with the basic gist now take a look down the sales threads and see if its just me.

It just struck a chord that I was sat chatting with a man with money in his pocket who in my analogy he would have been 2nd best potential buyer but it was priced imo purely on primary buyer.

The buyer is taking 2 names off me and fancies a 3rd, so result.

 

[Bailey]

Worded better than me but yeah thats the idea, with the basic gist now take a look down the sales threads and see if its just me.

.

Sales price expectations are always of interest to me, (along with studying sales data) I think we all accept there isn't a 'market criteria' just an opportunity one. (I won't say opportunistic because that's about maximizing)

So, if your referring to (best case) end-user sales pricing here on Acorn. What's new ?

I do think (with hindsight) that it is difficult to have an overall realistic picture of any local market without at least a 'Big toe' in the Global market. Its got to be almost impossible these days (for newbies) to be able to have any realistic chance of building 'historic' sales data of their own to be able to project into forward thinking investments. And equally expanding (or curtailing) what is worth a 3-5+ year punt.

Coming back to your original 'Scenario' though Skinner, I wouldn't waste my time on anybody's 'apparent' misdirection - trying to help (more than once) would be falling on deaf-ears or at worse seen as moving in

 

[Skinner]

I guess specific end user prices is an example of what I mean, but not entirely. By specific end user, I mean priced for 1 buyer potentially the biggest in a sea of 100.

I hadn't noticed this until this end user was telling me, now he's mentioned it and I'm researching it more, it seems to make sense.