I was looking at a domain name today and came across its Efty landing page. On the left side of the page, there was a short list of publicly reported domain name sales, including a few in the multi-million range. These domain names were not comparable to the domain name I was looking at, and the sale prices were not close to what the domain name is worth. I think showing unrelated domain name sales might be a detriment.
When it comes to providing a price to prospective buyers, I like to share comparable sales. I know some people don’t like doing this, but I think it can be helpful. For instance, when a prospective buyers inquires about one of my one word .com domain names, I send them a link to recent one word .com domain name sales and when someone inquires about one of my LLL .com domain names, I send them this link to recent 3 letter .com domain name sales. In my opinion, sharing what similar domain names have sold for can be helpful to them in understanding the value of my domain names.
The risk with sharing super-high sales as comparables is the prospect might think your valuation is so far off it is not worth inquiring. For instance, I think it would be silly for me to mention the $30 million sale of Voice.com when someone inquires about Butterscotch.com. Besides the fact that these are both one word .com domain names, there are few other similarities. I think using Voice.com as a comparable sale in this case would be detrimental to me rather than helpful.
When I cite comparable sales, I try to share real comparable sales rather than super-hopeful sales. For instance, when someone inquires about Honeydew.com, I share this list of fruit .com domain name sales. When someone inquires about a different one word .com domain name, I share a select group of domain name sales I believe are somewhat related to my domain name rather than the highest sales I can find.
I think it can be helpful to share comparable sales, but I think it can be detrimental if the domain names are clearly much more valuable than mine.