Domain Name Return On Investment: Your Time Is Worth Something Too

Our friend Sahar Sarid over at Conceptualist.com has a great post about valuing a domain name.  Sahar points out that the sale price of a domain name should not only reflect the value of the domain, but also the costs associated with obtaining the domain, the risk involved, and the time that you have expended, including lost opportunities.

I will give you an example from a recent sale of ours, a domain we bought for approximately 100.00 $US and sold for over 200,000.00 $US.

One can look at that domain and say “that is a great ROI!”, that it only took 10 minutes to negotiate it, but what do I see? I see over eight years of hardly selling anything. I see thousands of email reading and hundreds of replies that resulted in no deal whatsoever, and at times, insults. I see many thousands of other domains in our portfolio that will never sell for anything. And what I don’t see? I don’t see this sale repeating itself anytime soon!

It is always important to place a value on your domain name that reflects its value and potential to the marketplace, but it is also important to add your time and expenses in marketing the domain into that valuation.  You must always remember that a domain name sale may represent a unique opportunity to a niche buyer, so your time in finding that niche buyer should be reflected in the sale price.

Comments

[Trademark attorney; trademark lawsuit; trademark registration; trademark filing; international trade]

Value, like beauty, is in the eye of the beholder. Similarly, one's junk is another's treasure. These maxims apply to the domain world as much as anything else. If you are a seller, you need to take the effort and identify possible purchasers. While potential purchasers may seek you out, why not try to maximize your value opportunity? In doing so, don't forget to protect your valuable asset by limiting the chances of being subjected to claims of cybersquatting.