Why did User.com sell for so little?

low

Last week I wrote an article about Deposit.com selling for a lot less than I thought it would have, and today I found out that User.com sold for just $150k. While of course I’m happy for the buyer and seller, I’m officially confused.

This year Super.com sold for $1.2M, Great.com for $900,000, and Liquid.com for $750,000. Let’s be honest, User.com belong amongst the ranks of these names, not down at $150k with WJX.com.

Here’s what I think is happening. First – no one-word .COMs aren’t suddenly seeing a drop in price. Instead, some one-word .COM owners need liquidity, and in the domain game, if you need liquidity you could find yourself selling your domain(s) for one tenth of their actual value.

So while I see this as a huge win for the buyer and a major brand upgrade for User Engage (read more on Elliot’s blog) I think this is far below what this domain is worth. One of my readers pointed out to me last week that Deposit.com had actually sold for $1.5M in 2000, so 18 years later and the domain went for a tenth of what it sold for back then.

I think User.com sold for about a tenth of what it was worth. Like I said, happy for the buyer, they got one heck of an incredible deal. As for the seller, I think they needed money, fast, and they got it, but they left a LOT of money on the table with this one IMHO.

What do you think? Is $150k a totally fair price for User.com or do you agree with me that this is low, way low? I want to hear from you, comment and let your voice be heard!

{ 14 comments… add one }

  • Supratik October 29, 2018, 8:21 pm

    Yes, it sold cheap!

    Single commonly used dictionary words should have reserve of $500k IMHO.

    And two words combo a reserve of $25k at least.

    I see lots of domain veterans are selling cheap!

    Reply
  • Steven October 29, 2018, 8:41 pm

    It’s hard to say there’s an “actual value” for any name. I view it as wholesale/auction pricing versus retail pricing. Sometimes an end user gets lucky and finds the name they want at wholesale pricing from someone looking to liquidate. Wholesale pricing on high end .com’s is usually between 5% and 25% of retail pricing.

    Reply
  • John October 29, 2018, 10:39 pm

    This is why sellers should use Kate Buckley – this name sold for much too low.

    Reply
  • Bobby October 29, 2018, 10:43 pm

    Sold way too cheap in a strong time of the year to boot (last quarter).
    Rick Schwartz always refers to the last quarter of the year as the action quarter for corporate acquisitions with December being the Top activity month.
    Bad sales for the domain industry.
    Agreed, the names mentioned got about a tenth of what they are worth.
    rcs

    Reply
  • Uknowledge October 30, 2018, 12:11 am

    This is what happens when a broker car negotiate well and get more.Sedo brokers leave way too much on the table. Maybe buyer needed cash but let a nice liquid assets sell too cheap .Will never allow a sedo broker be my broker. They post all these weak sales in low 6 figures and who knows what happens behind closed doors if seller sounds desperate .I easily tell them not selling my name for low figures when I get contacted and they say what matters is to have more sales volume.Really?There is a big gap between domainers who will want 7 figures and others who buckle easily .Why not offer installmental payment and ask for 7 figure price like Rick does?Some domainers would never learn from experienced domainers and hold forth and ask for the figure a name is worth.Wont use a sedo broker, period.

    Reply
  • Snoopy October 30, 2018, 1:27 am

    Would have got more on auction.

    Reply
  • MapleDots October 30, 2018, 5:09 am

    I don’t think it sold cheap, I think the seller got great value at 150k. Unlike “great” & “super” the domain name “user” has limited applications. I mean really, the best end user possible bought it and chances at a second kick at the can were probably slim. I’m sure the domain owner knew what he had but its probably been eons since an offer came in on it. The purchaser probably took full advantage of this in the negotiation process. Personally I think this was a good deal for both parties and I would probably have let it go for that had it been my domain. Now “super” or “great” that is another story altogether.

    Reply
  • Michael Travis October 30, 2018, 6:13 am

    Fair deal, at auction it would have been less. There’s no liquidity. It didn’t sell below value imo.

    Reply
  • JZ October 30, 2018, 7:56 am

    Way cheap for sure but how long would the seller have to wait to get 500k or more? Another 10 years? Very sad to see this go for anything less than 250k which I think its bargain basement for this kind of domain. Looking at the whois, it seems the seller is not a domainer but just a guy who owns two other domains.

    Reply
  • RaTHeaD October 30, 2018, 8:01 am

    single common word dotcoms are about to explode in value. watch Tv. no one is advertising their facebook page anymore. a good domain name is easy to remember. a great domain name is hard to forget.

    Reply
  • Sigma October 30, 2018, 8:04 am

    October 2018 has shown signs of a serious recession on the horizon; by the end of the 2018 or end of Q1 2019. Some registrants of high value domain names like User dot com are cashing out while they can; some are over-leveraged and a recession will wipe out many speculators.
    On the flip side, its a good thing for DN speculators who are cash heavy with excellent credit scores. Some of us will be able to scoop of domain names at fire-sale prices in 2019…Stay tuned.

    Reply
  • John October 30, 2018, 12:07 pm

    Very cheap, steal for the buyer.

    Reply
  • Branding October 30, 2018, 1:10 pm

    It should be noted that while there are positive definitions of a “user” there is an informal applications that clearly have negative connotations. A “user” can be a person who abuses drugs or takes advantage of others. The informal definition limits its appeal and its value.

    Reply
    • John October 30, 2018, 7:40 pm

      No, that is very passe now.

      Reply

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