I was training a new salesperson and they asked me what were some of the best ways to give end-users an idea of a domain’s value. Like anything else in life, people want to see comparable sales, period. If you’re buying a used car, boat, or house, you want to know what a similar car, boat, or house sold for and the more recent the better.
This is why we all owe people like Ron Jackson a huge “Thanks!” for resources like DNJournal. Another one of my go-to resources for past sales data is NameBio.com which I consider like a mini domain MLS.
My point is that this data should matter to you, especially when you’re trying to negotiate a sale. The thing is, while those of us in the industry may be able to quote last month’s top sales, your average person has absolutely no idea. By providing examples of similar sales you can give some context to the real-world value of your domain.
Of course this data is often used in both directions which means everything should be taken with a grain of salt. A buyer can just as easily use previous sales to show why a domain might be worth less than what the buyer is asking. As I’ve said many times before, at the end of the day the price of a domain has a lot more to do with who owns it than what name it is.
It might sound simple but I’m surprised how many people end-up throwing out prices on domains without showing a few similar sales to back-up their price. It gives a lot of context and whether you’re a buyer or seller this kind of data can help turn what might look like fuzzy math into a realistic number.