Don't Overpay for Domain Names (1 Viewing)

Don’t Overpay for Domain Names: The Importance of Patience in Domaining​

We’ve all been there. You’re scrolling through domain drops and auctions, feeling a little discouraged because it’s been a slow week. Then, you see a promising name with a nice ending that’s expiring that day. Since you haven’t bought much lately, you start convincing yourself that the name is better than it actually is. You get into a bidding war with another buyer, and before you know it, you’ve “won” the auction for 5x or 10x more than you originally planned to spend.

Or maybe you get into an ego battle over a name and end up paying way more than it’s worth. Then, two days later, you see a handful of amazing names that you can’t afford to bid on because you blew your budget on that one overpriced domain. Or, you spend too much on a bunch of mediocre names, only to see a broker’s newsletter advertising a single, superlative name that you could have had if you’d just been more patient.


Read more: Don't Overpay for Domain Names: The Importance of Patience in Domaining - Robbie's Blog online since 2011 - Domain Names, Domain News, Domain Auctions

It's a good article but domains are like real estate, you can overpay and with time still have a bargain.

I overpaid for my house 12 years ago and put in a pool and tons of upgrades. My neighbour is a real estate agent and he said I would have to grow old in the house and would never get my money back.

I told him it is OK, I built it for my family to enjoy and it was not about the resale.

Fast forward to 2016 about 6 years later and I had an offer at 500k more than I had invested. I analyzed it and turned it down because I spent 10k fighting the city to use an entire second apartment in the house as a business and that licensing took 42 meetings with the city to get. So my house is my business, my cottage, and my home.

Same goes with a domain like Waterloo.com for which I paid 35k and I bought it straight from GoDaddy, they actually owned it. It was never at auction but outright owned by GoDaddy.

In both cases I dramatically overpaid but today I am sitting on two bargains that will become my children's nest eggs.

So as much as the article above is good information to have, the actual fact is that time can be your friend when it comes to your assets. They usually appreciate and prime domain names are no exception to that rule.

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Couldn't resist

I don't think he's referring to premium domains, and it's more a statement against consistently overpaying at the mid-range, which happens a lot in expired auctions. e.g. "you start convincing yourself that the name is better than it actually is..."

This is a real danger because non-premiums don't naturally appreciate in the same way that true premiums do, and can often decline in value over the longer term.

It's fine to "overpay" when it is proportional to the opportunity.

Is it something super unique that doesn't come up often? I tend to be more flexible with price ranges on those type of domains.

Overpaying for normal inventory type domains can quickly put you in a deep hole.

Brad

MapleDots said:

Same goes with a domain like Waterloo.com for which I paid 35k and I bought it straight from GoDaddy, they actually owned it. It was never at auction but outright owned by GoDaddy.

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I wonder if the new movie about Napoleon will generate some interest in the Waterloo domain. The movie preview looks really good anyway, if you like historic movies with epic battles.