Domainers love “comps” – the comparative sales numbers that help many price, and sell, their domain names.
Most savvy domain investors have a good grasp of how to price their domains, and using comps is often utilized when flipping domains.
If you want to sell to end-user buyers, however, the method is of little to no use.
The process of relying on domain sales comps might help *you* define a base point to price your domain, but most often you’ll end up undervaluing it.
Every domain inquiry by an end-user buyer is different, and the sales price involves the budgetary constraints of the buyer.
On the other hand, quoting a comparative sales price to the buyer as a means of establishing a valuation, has very little impact on how they manage their acquisition.
A buyer’s interested in a specific domain, not in a lesson about domain valuation; your job is to sell the domain by maxing out your ROI, and for that one needs a tailored price quote.
If you must check out similar domain sales, do check out NameBio, but be prepared to review and process a wide range of sales prices; that exact fact led to the fun Domain Game app.
To recap: Domain comps work great for selling “liquid domains” to other domainers. For end-user buyers, dig into their financials and deliver a custom quote without a fixation on comp sales numbers.
This is a very good post, and completely true. Thx.
Excellent point! It’s also common for some sellers to “Over Sell” using comparisons in negotiations where they do help (E.g. Liquid), if used sparingly. This normally leads to the deal falling apart fast.
Hi Theo
good article and i think the quote below, the best line of all:
“A buyer’s interested in a specific domain, not in a lesson about domain valuation”
Don
Been saying it for over a decade, good article Theo.