“Under Sold” Domain Names | DomainInvesting.com
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“Under Sold” Domain Names

7

Every domain broker wants to sell their domain name listings for as much money as possible. Sometimes domain names may appear to have been under sold (sold for less than full value), but that is not necessarily the fault of the broker.

A domain broker is generally given certain requirements from the seller. This short list likely includes a desired price, a minimum price, the amount of time allowed, companies to not contact, and possibly some other requirements. The biggest factors are obviously the amount of money and the time permitted to sell the domain name.

Some reasons a domain owner might need a quick sale include:

  • Need cash right away
  • Tax implications
  • Business situation requiring disposal of assets
  • Hit quarterly or annual goals

Timing is everything when it comes to domain names. I could own a domain name for ten years and never receive a single inquiry. The week after I sell it to another domain investor, a buyer may materialize and acquire it at a profit for the new owner. This is one reason there is an active aftermarket amongst domain investors. Just because one person did not sell a domain name for its maximum value doesn’t mean the domain name will not sell for more in the future.

If a domain owner hires a broker and tells the broker the domain name needs to be sold quickly, there is only so much a broker can do. I am sure it is disheartening for brokers to read negative comments about their deals when people don’t know whether or not there is a backstory. The best brokers in the business tend to keep their client discussions confidential, so just because a broker doesn’t respond to negativity doesn’t mean there isn’t a reason.

I have read critical comments on this website, on other websites, and on forums regarding many domain name sales that people think were for less than the value of the domain name. Third party observers (myself included) have no idea about any backstory for individual domain names. I am sure I have sold my own domain names for less than optimal value, but my business decisions are based on my experience and expertise, and it wouldn’t make sense for someone to comment without knowing the full story.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (7)

    Nick

    “gold” sold below market price is purely due to circumstances and needs, but at the end it is undersold, below market value. It is part of life and it happens all the time.

    November 25th, 2017 at 11:45 am

    Raul

    Say what you will, but below market sales makes me never want to use Sedo or Dave Evanson as a broker for my valuables.

    November 25th, 2017 at 12:57 pm

      Elliot Silver

      What are some of your valuable domain names? Would be interesting to see what Dave is missing out on.

      November 25th, 2017 at 7:57 pm

    John

    >”Every domain broker wants to sell their domain name listings for as much money as possible.”

    Unless there is a conflict of interest, some other hidden issue or reason going on, laziness, impatience, lack of good faith desire to maximize benefit to the client, or an improperly biased and mistaken view of what the domain is really worth.

    —————————

    Sure there are obviously some reasonable points here, but if and when you start trumpeting something as great when it’s not then you are serving up harmful Kool-Aid, the emperor is walking around naked, and any “luminaries” who lend any support to the charade become part of the problem like gasoline on fire. Then people and the industry as a whole suffers.

    November 25th, 2017 at 1:51 pm

    Eric Lyon

    A lot of the underselling I’ve seen is due to advise from other investors that may already know the potential of the domain and provided a lowball appraisal, just so they can use a broker/mediator later (So you don’t know it was them) to get it cheap, so they can then make a killing later.

    This is actually a very common practice that not many people talk about. Devalue, get cheap, sell high.

    Many under-sold domains were subject to that kind of strategy.

    Obviously, there are some bad domain investments, but just be careful and don’t let one of your gems get devalued by another investor looking to take advantage of you.

    November 25th, 2017 at 2:03 pm

      Mark Thorpe

      Sad, but true. Especially with one word domains.

      In reply to Eric Lyon | November 25th, 2017 at 10:00 pm

      John

      Otherwise known as predatory sociopathic behavior. Also known as lying.

      Getting something cheap honestly is one thing, and honest lowballing is one thing, but that is plain evil. And yes, there are consequences whether you delude yourself otherwise or get the domain cheap or not.

      In reply to Eric Lyon | November 25th, 2017 at 10:56 pm

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