Realistic Domain Valuation

dollarsigneyesEvery domain investor thinks that their domain portfolio is the best one out there. At least a lot of domainers do. Some are actually very realistic about the valuation of the names in their portfolio.

Others… Well, others have absolutely lost their minds.

You know the names I’m talking about, right? The guy that landed in the forum last week with his big list of nonsensical domain names. The one selling taintedwheatoilgermination.com for a cool million???

I’m exaggerating of course, but we’ve all seen these dumb domain lists for sale in our daily rounds. People asking an ungodly price for domains that probably aren’t worth the registration cost.

So let’s get down to brass tacks here. The bottom line is this. Just because you can string a few real words together, doesn’t mean that those words are worth a fortune. In fact, it really doesn’t mean that it’s worth anything. Because it comes back to what I’ve said all along. A domain, or any property for that matter, is only valuable if you have a market to sell it in. Without buyers, the value is ZERO.

Now I’m not sure, but I don’t think there is such a thing as tainted wheat oil germination, and I’m not really sure there ever will be. So even speculating that this might be a valuable term sometime in the near future is a bad bet. Even if you only paid a few bucks to register it.

Ultimately, you need to value your domains for what they are really worth. This takes research, knowledge, and a little experience. Don’t just put a million dollar price tag on your domains because that’s what you want for them. If you put realistic prices on them they are much more likely to actually sell.

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