Here are some things I’m thinking about…
I’m amused by some of the reactions to the $900,000 sale of Purple.com. A lot of people are saying that the seller should have held out for more. I suspect that, for most commenters, $900,000 would have a significant impact on their lives. They probably would have accepted much less.
Keep in mind that there are only so many companies in the world that would have an interest in this domain name and also have the ability to spend close to $1 million for it. The seller has owned the domain since the 1990s and was very familiar with the offers/market landscape for this domain.
…I’ve been using the GoDaddy Domain Listing Service beta for a while now. It’s going to make listing domains for sale much easier than before. It’s a true beta with some kinks to work out, but once it’s all buttoned up it’s going to be really nice. I especially like how you can easily point your domains to a “For Sale” only lander.
One note about those For Sale landers–it would be nice if they could be branded with GoDaddy rather than Afternic. The general trusts buying a domain name through GoDaddy, not necessarily Afternic.
…I love the fast transfer programs that Afternic and Sedo offer. It would be nice if the automated transfer out could be enacted even when the domain buyer cannot receive a fast transfer. For example, last week I sold a domain through the Afternic network in which the transaction was not fast transfer. The domain was opted in to fast transfer, so it would be more convenient if the domain would at least fast transfer to Afternic’s holding account so I didn’t have to do the work of pushing the domain.
…I’m really distressed about the impact GDPR is going to have on Whois. Actually, a more accurate description is that I’m distressed about the actions companies are choosing to take in regards to Whois because of GDPR. Companies do not need to obfuscate all of Whois for every domain in order to comply, but that’s the choice they’re making. I rely on Whois for much of my business and this will certainly be negatively impacted. The only way I can see to reverse course here is for the U.S. to pass a law mandating that domains have public Whois. That would balance the conversation and stop companies from taking the nuclear option they are taking.
R P says
Might have something to do with timing of purple.com sale. Seems like fundemantals are returning back to domain market. If so top tier domains like purple.com might be at beginning stages of another bull market and that $900K could be $2M liquid in another 1-2 yrs. There is a finite supply of top tier .coms, and new Gs are not the way to go long term if you are a global company.
Not sure if prices are back to 2008 pre-crash levels but perhaps close. Question for me is if tech stocks and broader market averages fall will domain prices also fall like 2008-09. With trillions of fiat printed over last 10 years and emergence of Asian domain investors we could potentially see a decoupling.
Andrew Allemann says
Were names like Purple.com every $2M liquid? I don’t recall a time like that.
John says
How do you not? The guy was apparently fending off suitors for years. I used to see statements along such lines on the site.
John says
> “A lot of people are saying that the seller should have held out for more”
It’s not about that. It’s about being honest about what such a domain is really worth and how the buyer got the better end of the deal. Otherwise you’ll have to be amused by your own comment too:
“Buying a mattress online requires a level of confidence and upgrading from the subpar domain name OnPurple.com to Purple.com will likely pay off many times over for the mattress company.”
John says
“A lot of people are saying that the seller should have held out for more”
It’s not about that. It’s about being honest about what such a domain is really worth and how the buyer got the better end of the deal. Otherwise you’ll have to be amused by your own comment too:
“Buying a mattress online requires a level of confidence and upgrading from the subpar domain name OnPurple.com to Purple.com will likely pay off many times over for the mattress company.”
R P says
Exactly. I said “could be in 1-2 years”. Just like a stock market, if top tier domain prices in general breakout out above 10 yr resistance level there is nothing technically stopping them from establishing continued new highs.
We could potentially see top tier domains double or triple. We’ve seen stocks breakout and double or triple within 1-2 yrs, we’ve seen crypto do that and then some, why could that not happen to domain names?
Therefore my question, if the QQQ’s have put in a long term double top will domain prices follow. Im not so sure. The fundamentals appear different this time to me but markets tend to make most look foolish.
John says
Fast transfer…
I got invited/requested to list a domain some time ago. Okay, sounded good, and I knew some had been interested in it before. When I agreed, lo and behold I discover the price gets set beyond my control with no ability at all for me to edit it, far less than I regard the domain to be worth. What a shock that was, and what an “invitation.” With “fast transfer,” someone could have swooped in to buy it, then poof it’s gone.
Needless to say I transferred the domain somewhere else immediately. Now I will only list domains that are held somewhere that can’t happen.
Is that how it is now?
John says
p.s. This was probably a few years ago already.
Accent says
There are two websites. Godaddy and Afternic. Changes are at Afternic. There’s another problem. They now have an Estibot clone, from a MIT Whiz Kid who does not know much about domains.
He does not understand that the Chinese radically reshaped the LLLL.com market 2 years ago. No progress – the entire CHIP LLLL section is totally worthless.
It matters. The search will not advertise the GoValue estimate if it is lower than your sale price – but the GoValue is with every unregistered domain listed. A few minutes will show customers that “good” prices will show in search, and they will avoid domains that are “too high”.
It is GoDaddy’s way to force prices lower to sell more. Good for them, bad for us.
John says
I don’t know anything about the Go Daddy tool and have never even checked it out, but I know that NameJet had the “Estibot” figure showing for every listing, so I will not list there.
With the Estibot “tool” you can get a good deal on a domain like crypto.com and succeed where others have failed. Others have tried, but if you show this then the guy will have to cave:
https://ibb.co/eOEgsx
Snoopy says
Re Purple.com, most people would have sold for $5,000 in 1998, taking the first decent offer at the time.
Secondly yes $900,000 would have a big impact for most people.
Those two facts however do not equate to 900k being a strong price in 2018.
Re the market, many segments are weak but not short, singular .com’s that works as brands. Those names are way higher than any point in the past.
Michael Anthony Castello says
Purple.com selling at $900k is a great price. It’s a brand and not a business vertical like Manicure.com or Nashville.com. Those are obvious business models. A company that just happened to have Purple in its name and had a lot of money to offer. The seller played this one very well. The buyer only had one choice to better their address and paid for it. Win, win.
John says
Kool-Aid. Not a great price.
John says
P.S. Just in case you weren’t around in the 70’s and don’t know the reference:
https://en.wikipedia.org/wiki/Drinking_the_Kool-Aid
Snoopy says
Disagree Michael, product/service/geo names are out of favor because the potential business is less clear after 2012 Google changes. Very broad easy remembered brand names is where it is at, I don’t like it but that is how it is.
How many product/service/geo names are on this list?
http://www.dnjournal.com/archive/domainsales/2017/2017-top-100-sales-charts.htm
Michael Anthony Castello says
Snoopy, Google plays no part in my valuations. Google’s reign is episodic. Domain names with a business vertical are always going to be in demand and an easier sell than a Wednesday.com or Purple.com. I’ve sold enough over the years to know the difference. They are all great names/brands but $900k at this point for Purple is a great sale.
BTW, love Ron’s sales list but many names that are sold for big money may not want to go public with a sale.
Rubens Kuhl says
Regarding GDPR, “nice” of you to criticise others on their legal choices, but not offer to pay their fines.
John says
Apples and oranges:
1. Buyer had good reason to take $900k, their private business.
2. $900k is or is not a good price for the domain.
Please realize the two are miles apart, those who think it’s either/or.
$900k was not a good price for this domain. Buyer may have had good reason to take $900k. Buyer may also have not been particularly skilled at discussing and negotiating the matter. Simple.
Stop serving and drinking Kool-Aid. The emperor is naked.
John says
p.s. And as if it isn’t obvious and understood, yes indeed, most people would probably benefit from an extra $900k right now. That has no bearing on whether this was a good price for the value of the domain. Apples/oranges.
Instead of drinking Kool-Aid, how easy it would be to just say:
“Yes, buyer got a good price. The domain is worth much more, even though seller may be happy with what they got.”
More below…
Snoopy says
Well said John
John says
Thanks Snoopy.
fizz says
Agree that today it was a win-win for buyer and seller re purple.com @900K, and also agree with other posters that the value of such prime generic .coms is rising strongly.
John says
…more above.
Will leave with this question tonight:
Does not the history of domain investing itself celebrate one or more stories of how Rick Schwartz himself used the exact same argument tactic about how the seller would benefit from getting such and such amount of $ in exchange for a great domain worth far more in the big picture? Most notably for an extremely valuable three letter .com he still has and has probably made millions from with the traffic?
Are we now going to turn around and use the very same tactics on ourselves to whitewash a low price for a domain worth more, to all of our own detriment?
Peter says
What detriment John? Please cue us into what prices you are selling your domains for?
Josh says
$900K for Purple.com when one considers the limited amount of end users for such a name with such a matching company name is a terrific price. In fact I imagine next to no one thinks I need a mattress, oh ya purple.com, That marketing effort will cost even more to claim, imo. It is almost, is really “too generic” and is simply a great name to brand but offers at this time no advantage revenue wise to own. Not like they were losing sales. Take Kleenex for example, kleenex is a brand name for tissues, owning their brand name makes perfect sense kleenex=tissues, in this case purple does NOT= Mattress, sorry. $900k, seller should be on cloud 9.