Domains for Thousands of $'s? I Don't Get It...

Discussion in 'Domain Names' started by adamx8, Oct 18, 2008.

  1. #1
    I am hoping some of you guys can teach me this. Recently I really got into domain collecting. It's been really addicting and obviously expensive. A lot of domains are taken that I want and then some are owned but for sale on places that auction them like godaddy's auction places the other major auction sites. I am seeing domains with BIN for almost $30K and even ones close to $40K each. Not even developed.

    Who is seriously buying them? Is there some other reason for these prices to be ridiculous like this? They aren't even one word domains. So what drives these prices? I would appreciate any insight anyone can offer.

    Adam
     
    adamx8, Oct 18, 2008 IP
  2. dp12345

    dp12345 Peon

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    #2
    they are the prices put up by the sellers and not by the buyers , so only fraction of what are the listed their get desired price , bulk of them either keep getting renewed by their owners in a false hope and ultimately get sold at the reg price or even below that.
     
    dp12345, Oct 19, 2008 IP
  3. preets

    preets Active Member

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    #3
    preets, Oct 19, 2008 IP
  4. bhanulaxman

    bhanulaxman Peon

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    #4
    i got a offer for $4k, but the buyer did not taken the next steps, i responded several times but no use
     
    bhanulaxman, Oct 19, 2008 IP
  5. shacow

    shacow Active Member

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    #5
    If I found a good domain for $10k.. I would buy it tomorrow. At the end of the day.. with a good domain and a good site, you are un stoppable ;)
     
    shacow, Oct 19, 2008 IP
  6. Anatoly

    Anatoly Peon

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    #6
    the reason some domains are worth so much money is because of the type in traffic they get.
     
    Anatoly, Oct 19, 2008 IP
  7. adamx8

    adamx8 Active Member

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    #7
    I appreciate the responses from everyone.I just couldn't fathom spending tens of thousands of dollars for a domain without a site already built on it unless I had millions to promote it with hopes of serious returns. I guess I was just taken back by the prices but I understand there is a small population that will spend that kind of cash.
     
    adamx8, Oct 19, 2008 IP
  8. napa

    napa Peon

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    #8
    If you have a great domain you don't need to promote it, it is a cash cow.
     
    napa, Oct 19, 2008 IP
  9. Fka200

    Fka200 Guest

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    #9
    Branding of a premium generic is, IMO, priceless. Imagine trying to open a site for Poker... Poker.com would be absolutely fabulous to own because you will be receiving targeted type-in traffic and your audience will want exactly what you give them. Some of these domains also get a LOT of type-in traffic (ie: sex.com)... it would be dumb to sell it for less than the domain is making parked.

    Domains like that sell for millions of dollars just because of the value they hold. Now a days you have to end up getting something PokerPower or PokerOcean to manage to open up a name (assuming you want a .com/.net).

    Image is everything.
     
    Fka200, Oct 19, 2008 IP
  10. blakey8438

    blakey8438 Guest

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    #10
    and think of all the traffic you get from one of those domain that CLICK your adsense ads, you will make the money back eventually just from that... you cant go wrong
     
    blakey8438, Oct 19, 2008 IP
  11. Hopper

    Hopper Well-Known Member

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    #11
    Imagine you are a cabinet maker and your name is Peter Sigzonvic and you own a company called Peter Sigzonovic Ltd (or inc etc).

    Which domain do you think would bring you more TARGETED traffic - petersigzonovic.com or cabinetmakers.com?

    Hence the prices asked!
     
    Hopper, Oct 19, 2008 IP
  12. adamx8

    adamx8 Active Member

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    #12
    Oh I can see that but a lot of these domains weren't even the one word domains like poker.xxx, they were the ones like pokerpet.xxx or whatever example. Thats what confused me. No doubt about the one words being valuable like that. What I would give for military.com to forget to renew their domain :)
     
    adamx8, Oct 19, 2008 IP
  13. Fka200

    Fka200 Guest

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    #13
    Well, domain investors (sorry) buy up domains and hold onto them. I own some domains that kill me to see them parked, but all in due time. If someone think they can do a better job at development/keyword optimizing for parking, make me a good enough offer and the domain is yours. Just like property, people buy and hold waiting for a nice paycheck or they "rent" (my view of parking... you make money while benefiting someone else, the parking company--super easy and practically maintenance free).

    As for military.com ever expiring... if it did, it would take x,xxx,xxx to pick it up... even expired :).
     
    Fka200, Oct 19, 2008 IP
  14. adamx8

    adamx8 Active Member

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    #14
    Eventually I will buy that domain, but it will take me at least 1-2 years from now before i can offer something along those lines. Anyways, I have read a bit on domain investing and I personally have a nice portfolio going right now. I have no idea what I can get but I have actually developed 75% of the domains i own. I hate parking them because it just feels under used to me. I think this turned out to be a pretty informative thread and got me researching a bit more.
     
    adamx8, Oct 19, 2008 IP
  15. ~ServerPoint~

    ~ServerPoint~ Banned

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    #15
    If domainn name is on the sale for 1-2K dollars and people do buy them, I believe they know what they are doing.
    Good domain names are always in the demand
     
    ~ServerPoint~, Oct 20, 2008 IP
  16. preets

    preets Active Member

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    #16
    Very true , a good domain name can make your business successfull and save a lot of work also.Your main keyword in your domain brings instant free traffic to your website.It is worth to invest money in great domain names.
     
    preets, Oct 20, 2008 IP
  17. Pixelrage

    Pixelrage Peon

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    #17
    as you get into it more (and more time goes by as you become seasoned), you'll see that a lot of people hit the crack pipe and have delusions that their domain name is worth 5-figures, when it's probably worth in the 3-figures or less. The sad part is that great domains somehow fell into the hands of people who are obviously not in the SEM field, or think that they're going to be an overnight millionaire.
     
    Pixelrage, Oct 20, 2008 IP