The top few domain names I own have always received the most number of purchase inquiries and offers. The vast majority of inquiries and offers are from unqualified buyers – people who do not have the budget to afford to pay what they are worth or people who do not have the vision to spend what it takes to buy the domain names. The number of offers a domain name receives shows that the domain name is valuable, but the offers are not typically reflective of the actual value of the asset.
People tend to think that because a domain name is owned by an investor, it can be had for cheap. They think, “this person still owns this domain name, so they must not be receiving offers.” They might also think, “the owner is a domain hoarder and will be happy to sell the domain name for whatever I offer.” I regularly explain to people that it’s not for a lack of interest the domain name hasn’t sold, but rather a lack of buyers who can afford to spend what I know the domain name is worth.
While I likely close a higher percentage of sales than some others who will not sell for anything less than the top dollar, I will sell my names for what I believe are good prices and good enough ROIs. This might not be the strategy others utilize, but I like the cashflow to continue investing in new and additional assets. One thing I look at when considering a good offer is how many inquiries or offers the domain name has historically received. I am less inclined to take a lower offer on a domain name that has received dozens of offers, but I might be more inclined to accept a less than ideal offer if the name hasn’t received a whole lot of interest in the time I owned it.
Just because a domain name doesn’t receive offers does not mean it has no value. I have sold many domain names that only received the one offer or was purchased via Afternic or DAN after nobody else inquired. Those types of domain names are more difficult to assess because the registrant likely had a vision for the domain name or was in-tune with a specific niche that made the domain name uniquely valuable. These are the best sales, and sometimes they come from a domain name I regret buying!
When a domain name receives purchase offers, it shows the domain name has value. Those offers, however, do not show what the domain name is worth.
“this person still owns this domain name, so they must not be receiving offers.”
This is a bit of a half truth. It could well be true on a lot of domains. I’ve certainly sold domains for quite high prices that have had zero interest before. Have also had domains that have been expensive to buy but get very little interest and will take decades to sell.