I was reading the Domain Smoke newsletter this morning when a name caught my eye, ROW.com which has an $150k bid on Flippa. As many people know, NAS.com sold for $720,000 and I think it’s safe to say ROW.com is right up there in terms of quality. Of course the question is, will it reach a price this high when listed for sale on a marketplace?
This is the conundrum that many domain investors face. Selling a name in the $500k+ range usually means having a name first, that’s worth more than $500k and second, waiting for a very motivated buyer that wants to buy the name from you.
When you list a name for sale or contact someone directly to buy a name from you, the leverage often flips, and not in your favor. I think this is what we’re seeing with ROW.com right now. It’s no secret that Flippa has buyers with six-figure budgets, now the question is – does the owner of ROW.com want top-dollar for their domain, or are they looking for liquidity?
My guess is there is a real opportunity to meet in the middle here. If the owner of ROW.com wanted something like the $720k the owner of NAS.com got, I think they know they’d have to be patient and wait on inbounds. The advantage a marketplace like Flippa, Afternic, Sedo, etc. offers is the ability to get more eyes on your name and let people know you are actually motivated to sell the name.
Okay, so here’s my two cents on what could happen here. First, yes, ROW.com could sell for $720k or even $800k, it’s possible. That being said, it could take one year, ten years, or twenty years for that to happen. My guess is the owner wants some cash sooner. Knowing that I’d say the sweet spot is in the $250k – $350k range where someone like a Brent Oxley could swoop in and pick it up.
What do you think?