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.