Carefully consider the source of domain name sales data.
It’s no secret that money is being made with short domain names right now. It has moved beyond 2 and 3 character domains to longer domain names.
I applaud those who have taken advantage of this price appreciation and are making money. But I also want to give a bit of a warning.
Lately, I’ve come across cases of boisterous “pumping” of certain types of domain names. People are shouting from the rooftops that certain domain names are worth a lot of money and will only go up in value, and some of the data they’re providing is suspect.
Keep in mind that most people have a vested interest in domain names. You should view sales claims with skepticism, especially when someone says they bought a domain name for a certain amount of money. Unless it was verified (e.g. on DNJournal or Sedo’s sales lists), you should carefully consider the source and their motivation.
Ask yourself this: Why would someone who just bought a liquid domain name advertise how much they bought it for? Especially if they want to turn around and flip it, it makes little sense.
At least one domain name registry has also made suspect claims about how much its domains are selling for.
Much like people holding a particular stock, there are a lot of people out there pumping the value of particular domain names. It’s OK to invest in these domain names, but I also recommend carefully considering claims people are making about their meteoric values. Consider the source and what their motivation is.
Mike says
Yep,very well said. It is easy to make out sales have occured that are really no more than passing from one hand to the other hand.
Mike says
And add to that, many many (in fact most private) sales are simply not reported and go under radar.
Joseph Peterson says
New domainers typically want to get rich quick. But evaluating what’s happening around us takes time. If we slow down, we’ll miss out – or so we believe.
Making money from naïve domainers is the quickest way to make money from domains.
Robert says
I love how Google won’t give much attention to a new domain name anyway. Domain age is still extremely important.
Aaron Strong says
This post is very helpful for new domainers….It is best for new domainers to question everything and trust nothing…The domain industry is full of scammers (Industry Insiders), because of the opportunities presented. Trying to figure out the good and bad can be a daunting task, overwhelming at times…
anon says
Plus, EVERYONE is all of a sudden an investment expert talking about how markets move and such.
It’s amateurish and pathetic.
Domain “brokers” are coming out of the woodwork and there are dozens of people claiming to know exactly why names are increasing in value and exactly why the Chinese are doing what they are.
In reality, no one has a clue.
Andrew Allemann says
To be fair, there are some people who are knowledgeable on the subject.
anon says
some. yes. but not everyone who gives their expert assessment is qualified.
Acro says
“People are shouting from the rooftops that certain domain names are worth a lot of money and will only go up in value, and some of the data they’re providing is suspect.”
Who are those people? I’d like to know.
Will says
I know many people make comparisons between the domain name market and the stock market. Hearing the pumping term remains me of the classic pump and dump that happens a lot in the stock market.
Like you mentioned it really is about being aware and not following victim to the trend and play the game. Know what is a good price to buy and do not let someone make you overpay. Do your research and buy at a price you can make a profit.
– Will
Krishna says
Good post at right point of time.
Everyone should carefully analyse the situation and take good decisions…
DN Select says
As people who are vested in the domain game, I understand why people would want to hype up or promote a certain extension or trend.
However, I don’t think it’s ever right to lie about sales or sales numbers, or anything else for that matter.
Mr Khoai says
Who are those people? I’d like to know.