Quit Paying High Prices for Domain Related Names
Why do domainers continue to overpay for domain related names or names that start with DN, or even the word domain when they have no plans to develop or brand them? The reason why, emotion. People are basing their buying on an attachment to their hobby (if you are just collecting and hoping someone buys its a hobby) rather than what they know to be right. Now to be clear, we have all done it, I have bought domain names based on an attachment to something but I did it knowing that. But when you are within the industry that the attachment is too, well not sure that it is a great idea to continue to buy based on that.
I initially had written this post on the way back from the trip to West Palm with good ole Chef Patrick (He has a blog if you did not know, ChefPatrick.com). During the trip we had witnessed something that we immediately caught as something rather obvious and somewhat concerning. Solid product domain names with immediate end user value (not domainer) and development potential selling at prices below names that had no potential outside the domainer world. As domainers we cannot keep being as incestuous as we are. The ability to continue to sell names inside the same group of people on Twitter, Facebook, Namepros, DNforum or other domain related sites at high prices is gone. We will not receive the value for our online real estate assets if we continue to do this.
Why do you keep doing it? When I first wrote this post I had pointed out the specific domains but I would prefer not to call out specific purchases because I think the point can be made without pointing out an invidual persons purchase. This is something that our long time industry leaders have been pointing out yet people ignore the advice.
Rick Schwartz has been successful selling domains at high prices based on his willingness to look out side our industry, a good portion of the top domain sales go to end users not other DOMAINERS. Continuing to put more value in slapping two words together and having the word domain, domaining, dn, or something to that effect and then paying more for that than solid keyword product names is not good. Yet it happens everyday. We all know that product related or service related names are the valuable ones, but we continue to overpay for domain related names.
Sometimes a little tough love is required to help people. For years while I followed the domain industry in the background I would read the forums, etc and see people giving advice but it was obvious they were diverting from the truth or simply were being taken as experts when in reality they had no more experience than the person they were trying to give advice too.
Well, I would prefer to help people rather than trying to hide info. I am sure people will disagree with this post, probably post a few comments that there is value in blah blah blah brandable 5 letter domain related made up word, thats crap. Unless you plan on actually developing it into something there is no value. IF you plan on branding it an developing it then you are no longer selling a domain but a business, there is a difference.
Morgan at Domainvestors.TV is a great example of branding, but guess what, he did not go buy your made up domain word, he was (and I am guessing here) able to hand register another made up word and has made it into something. That is why buying mixed up words with DN in them or others is not the most effective way to spend your money. Someone passed up the chance to own a product name with thousands of exact match searches a month to buy a name with exactly zero searches and no real end user potential so in otherwords, no true enduser value.
As I made clear on the bido video chat/interview on Friday I think it's a mistake to invest in made up words that sound cool, or just brandable word combinations in general. Now as I say that I am the first one to say you can build a brand on a name but this post is about domain reselling and potential fo resell or ease of resell to end users not other domainers. If you are developing to build a brand and then sell a website that is selling a business and once again, NOT selling a domain.
At the end of the day the most valuable names are product, service or geo specific keyword domains. watch the domain sales lists. I am pretty sure, but from a resell and domain value perspective the product name should of went for more than the domaining branded name. Tell me I am wrong here, have you witnessed the same thing?