Buying Domain Names

When I am trying to buy domain names from registrants who have held them for many years, I am frequently told that their domain names are worth more than I am willing to pay. Perhaps they have turned down better offers in the past, or maybe the discussed the value of the domain names with a broker or someone else. Whatever the case is, some people believe their domain names are worth more money than I am willing to pay.

In all honesty, they are probably right. I would not be willing to pay $25,000 to buy a domain name as an investment if I believe it is worth $25,000. Obviously I can not pay an amount of money that I would hope to get if I was selling it myself. So why should someone sell a domain name to me for less than it is worth? Liquidity.

Here are Nat Cohen’s comments about domain investors who bring liquidity to domain registrants. I believe Nat’s company recently acquired Owen.com and Higgins.com, and his commentary is in the wake of those deals:

In my morning DomainTools Registrant Monitor alert email I received yesterday morning, I saw a few domain name registrations from Amazon that caught my attention. The domain names that Amazon recently registered are related to business relief and small business relief. My guess is that the domain name registrations are related to an Amazon program created to help small business owners whose businesses are impacted by the COVID-19 coronavirus outbreak.

Several days ago, Amazon’s blog announced a program to assist local small business owners. Here’s an excerpt from the article: