One of the things I’m seeing more and more these days is domain investors talking about names that have been approved on popular brandable marketplaces like BrandBucket and Squadhelp. In many ways, getting a domain approved at one of these marketplaces validates the price you think the domain could sell for to an end user.
At the same time, as we all know, marketplaces don’t sell every name listed, and while the average sell through rate varies, it’s safe to say somewhere in the 1% – 5% range is realistic. So this means as an investor, if you have 100 domains listed, you can expect to sell between one and five of those names.
The challenge brandable marketplaces have is that they want to have good inventory and lots of options for customers so it’s certainly in their best interest to approve names they think people will like. At the same time, the price those names are approved at can often be conflated with valuation, and to be fair to Joakim, he did follow-up to his tweet above to say:
I think what Joakim says here is important – he realizes that the price a brandable marketplace allows you to list a domain for doesn’t necessary mean the domain is worth that or will sell for that price. That being said, I know there are a lot of domain investors out there who don’t know this and think once a brandable marketplace allows them to list a name at a certain price point, that the name must be worth that to an end user.
All that being said, getting back to the topic of my post I am now seeing people all the time mention that a name was approved at a certain price point on BrandBucket or Squadhelp when they’re trying to sell a domain to another Domainer. My question is, does this improve liquidity when selling names between investors?
What do you think? Comment and let your voice be heard!