Could $24,888 be the sweet spot for pricing two-word .COMs?

I saw an interesting tweet from Domain Investor Mike Mann yesterday after announcing the sale of JazzYou.com, a domain he bought for $20 three years ago and sold for $24,888 today. Here’s the tweet:

First – that’s an awesome flip, and second – please remember, Mike owns a ton of domains so don’t think that you can just go out there and buy domains for $20 and flip them for $24k all day long. If you could, or I could, we’d all be living on an island somewhere together, we’d call it Domainer Island, and yes – it would be awesome.

Okay, now back to the post. In this tweet Mike makes a very interesting statement, “$24,888 seems to be my sweet spot pricing.” Given that I see Mike selling a lot of two-word .COMs I take this to mean this seems to be a good price point for these names since I don’t think that’s a sweet spot for one-word .COMs or two-word .NETs.

I’ll include Mike in the Tweet as I’d be interested to see if I’m reading into this right, but if I am, it’s some really interesting data to have, and very nice to Mike to share that with the rest of us.

When I hear things like this it always makes me wonder if I’m not asking enough for some of my two-word .COMs. If I owned JazzYou.com, and I bought it for $20, I feel like I’d probably sell it for $2,500 and be pretty happy. I might have to change my tune and test out this price point given that Mike has a lot of sales data to back this up.

What do you think? Could $24,888 be a sweet spot for two-word .COMs? I want to hear from you, comment and let your voice be heard!

{ 7 comments… add one }

  • Doron Vermaat May 11, 2019, 3:18 pm

    Ok, so here’s my, perhaps unpopular, opinion.

    I think Mike Mann might do better overall if he’d priced these type of two-worders (that don’t necessarily mean much but could be used as a brand) at $2,888 instead.

    Research over the years have pointed out that most domains sell in that price range and I believe there’s a good reason most inventory at brandable marketplaces is priced in that $2,000 to $3,000 range.

    That’s also my personal experience having sold a couple of hundred domains to end users over the years and researching thousands of sales for my weekly brandable domain name sales post on Dngeek.com

    Michael Sumner over at NameBio seems to agree too and back this up with a ton of data in this post here: https://namebio.com/blog/pricing-strategies-domain-names/

    Also, I am not entirely sure if living on an island with a ton of other domainers would be that awesome πŸ˜†

    Reply
  • John May 11, 2019, 4:06 pm

    Speaking as an end user who really likes good domains, it’s a truly awful domain, so a sale like that is an anomaly.

    Is this all smoke and mirrors? The real question is whether that domain business is in the red or not, not whether there are anomalous sales that make nice little announcements. My money’s on red.

    I’ve said it before, I believe a strong factor in these sales, if they are true, boils down to marketing. And drilling down further, I mean “packaging.” And by “packaging” I mean the appearance and design and size and scope of his website. People see the website, and an impression occurs. An impression which induces some to pay remarkable prices for in many cases remarkably lackluster domain names that ordinarily would never sell for such amounts and that many domain investors wouldn’t even want. And all of that is really just “smoke and mirrors.” But good for him, I guess.

    And many are so clueless and so stupid they either won’t read this, or it’ll go in one ear and out the other. Because of my particular packaging. πŸ˜‰

    Now regarding pricing, some two word .coms are worth 8 figures or more, some 7, some 6, some 5, some 4, and so forth. There is no one size all “sweet spot,” including a sweet spot about realistic saleability goals. And once again – packaging. If contact were made another way, it’s entirely likely many of these sales would fall apart with recalcitrant lowballing far below what people have been willing to pay otherwise for a lot of the domains from this source.

    Reply
  • Jose May 11, 2019, 5:33 pm

    It’s a very good sale by Mike Mann and whoever bought it and paid $ 28,400 now wants to flip in just two days see this link:
    https://domainagents.com/marketplace/index.php?keyword=Jazzyou

    Happy Day. Jose.

    Reply
  • Mark Thorpe May 11, 2019, 5:52 pm

    There is no Island big enough for all the ego’s!
    Plus, Rick and Mike would fight over who is king of the Island Lol.

    Reply
  • John May 11, 2019, 6:00 pm

    Morgan we own OxfordEdition.com Any thoughts on what it might be worth? Thank you

    Reply
  • David May 11, 2019, 6:16 pm

    If this domain is up for re-sale already, could it be that the investor thought that Mike Mann being the previous owner and world class domainer is tantamount to Mann’s imprimatur on said domain, and thus it could be worth a lot more?

    Reply
  • Snoopy May 12, 2019, 5:18 pm

    Those sales tend to be Mike’s highest, not his average. It seems the average is a few thousand so $24,888 wouldn’t be the “sweet spot” for 2 word .com’s. It is closer to top end.

    Reply

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