Category Killer Domains Still a Hot Commodity

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Much like New York City taxi cab medallions, which are always highly coveted at auction, category killer domain names will always defy current market conditions. While I do think much of the domain industry is in the midst of a slow down, there are always going to be sectors of the industry that perform particularly well, regardless of of the health of the economy. Because category killer generic .com domain names are irreplaceable, when one is put on the market, the price can go through the roof.
On the flip side of things, I think people are spending less money on average domain names, which may be felt by many in the industry, since a vast majority of people own average domain names. I also believe some people think their domain names are worth more than the market will pay, and they are setting the prices far too high to have success. I am not really referring to a specific domain name here, but I am speaking in general terms. If you are going to entrust a domain auction house to sell your domain name, and you are going to allow them to lock the name up for 60 or 90 days after the auction, you might as well make the price reasonable.
Unless you own a genuine category killer domain name, I think you might want to reconsider your asking prices. Instead of trying to get rich on a single domain name, why not reduce your price, sell a name for a handsome profit margin, and reinvest it in other great domain names? There are plenty of times I have sold names for prices I believe are far less than optimal, but I have reinvested in more and better domain names every time, and I haven’t regretted a sale yet.

1 COMMENT

  1. Just like you, Elliot I’ve sold names below the market price in the past but I don’t consider it as a loss but a gain since I’ve reinvested in better domains. And I don’t have any regrets either.

  2. Hello Guys,
    I always like this strategy: sell below the market value and re-invest even in the same category and price range.
    I am doing this game since three years and it is paying off with great return.
    Mostly with LLLL.com and with the two key word combination in the .com extention.
    We believe in MediaWebPlus.com in the future of dot mobi especially in the 2011 and 2012 — so we are giving a priority in 40% of our future investments.
    regards,
    Nidal Kadri
    Ottawa Canada
    MediaWebPlus.com

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