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What's my domain name worth? by Kevin Oedekoven

The first question most domain registers want to know is this, "What's this worth?"
Unfortunately that's not a simple question to answer.
Sure, there are systems that purport to determine a fair market price for a domain using some algorithm that weights certain factors as links, name recognition, tld, keyword density, search word frequency, among others. But consider that even if I appraise something as worth $1,000,000.00 USD, that doesn't mean you'll be easily able to sell it for that price.
So what's the answer?
Well, let us step away from domains for a moment and take a thirty-thousand foot view of the question shall we?
Instead of asking, "What's my domain name worth?" Let us consider the question, "What's anything worth?"
Now the latter question may seem like little more than sophistry, word games and simple substitution, but I believe it will get uscloser to the answer than the former.
The value or worth of a thing (anything for that matter) is equal to the price someone is willing to part with in order to acquire it. Things are only worth what another is willing to pay for them.
There, I've answered your question. What? You didn't see it? Okay, lets bring ourselves back from the thirty-thousand foot view keeping our simple discovery in mind.
Your domain is worth what someone is willing to pay for it. If you've just registered it, then its worth at least your registration fee (since you yourself was willing to pay that for it.) Over the course of the year, this value might increase (if for example someone offers you more than the registration fee for it, or perhaps you park it/monetize the traffic to it and it generates revenue) or it might decrease in value (if for example it has made you no money, no one has offered you anything for it, and next year's registration fee is coming up.)
So before you tout that appraisal (paid for or otherwise) as a good metric on the value of a domain, consider the corollary question, "What's someone willing to pay for this domain?"
That's the true metric of worth.

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Is this a fair price for my domain? by Kevin Oedekoven

As a followup to my last article, "What's my domain name worth?" I want to examine this thread on the DomainState.com forum.
"Was this a good price?"
Good and bad are so subjective that its almost too difficult to answer this question without delving into the underlying questions that make up "Good."
So let's try to do that shall we?
* Underlying question #1: Did I accept too little for the sale? Did I offer too much? Alternately, "Did I cheat myself?"
Answer: Hindsight is a terrible enemy to happiness.
Never looking back is a good way to keep yourself from second-guessing a sale.
Did you feel at the time that the price offered was acceptable for the sale? If yes, then who cares if you undersold.
What? You do? Why?
Because you have more information now/didn't know any better? Then shame on you for waiting to find this information out/getting educated after the sale.
I'm not advocating a Pollyanna attitue to the purchases and sales of domains in your portfolio, rather that you should never use current information to examine a past exchange in any other light then as a "Lessons Learned" exercise.
Doing so will make each subsequent sale more solid and lead to less stress from bygone sales.
Taking each sale as a learning experience and applying any gleaned wisdom to each new sale will lead to less concern over the goodness, badness, rightness, and wrongness of any specific sale.
* Underlying question #2: Was this a fair sale?
Now we're at the root of a good question to examine. Fairness and Equity in transactions are fascinating subjects (at least to me.)
Let's first come to a concensus on the definition of fair.
Fair is defined as impartial, free from favoritism or bias.
So what would make a price fair for a domain?
As with all questions of this nature, I oftentimes find it valuable to eschew the details and instead examine a thirty-thousand foot view of the over-arching question.
Let's instead examine this question, "What makes a price fair?"
If the price offered for an object is below the maximum possible offering of a buyer, and is above the minimum necessary requirement of the seller, then each side will perceive that a good deal was struck.
When both parties leave a bargaining table satisfied with the exchange, then a fair exchange was realized.
So what's a fair price for your domain?
Any price over your mimimum selling point that's also below the buyers maximum offer constitutes a fair price.
What's a good price?
Depending on your role as a buyer or a seller, a good price stems from examining the difference between the offering point or the selling point and the actual purchase point.
Maximizing this difference will constitute a good price.

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How do you make money with website? by Kevin Oedekoven

I know what you're thinking, "Sure, like you're actually going to tell how to make money online."
Actually, yes. I'm really going to tell you how to make money online.
Mind you, I'm not going to claim you'll make a vast fortune. Nor will I try to tell you that you'll make this vast fortune in virtually no time at all. And I'm certainly not going to try to convince you that there's nothing to it - or that there's not actual work to be done on your part.
If your desires are to be fooled into believing that you can make a vast fortune immediately with no actual work, just because you're using the magic of the internet and some formulaic methodology that has propelled me into early retirement while I help struggling souls for karma, then I'm afraid you're going to be disappointed. Very disappointed.
For starters, let's get back to reality for a second. Money can be made online. And the investments are relatively small.
So now you're thinking, "What's the catch?"
Well, to begin with, always keep the adage, "If it seems too good to be true, then it probably is" in mind at all times.
Anyone who promises you incredible wealth without any work is selling you more than some formula for success. And most likely neither the formula nor the extras are worth the price you pay.
The only thing those systems are worth is the experience you might glean from the failure that follows. But let me save you the cash right now. Refer to the adage often.
By now you're probably convinced I'm just going to ramble on forever.
"Okay big shot, then how does one legitimately make money online?"

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Anatomy of a domain name sales scam. by Kevin Oedekoven

So the other day I get this email:

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From: Harrison [management@phreaker.net]
Hello,
We've have visited several online auctions. We are very interested in your domain name.
Just email me your price and we will consider it.
Of course, domain reselling is not a main direction of our business (we develop software). But domain aftermarket is hot now, so we are always interested in domain names.
Looking forward to do business with you.

Regards,
Anthony Harrison
COO
PDS Consulting
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Wow I think to myself, I just registered this domain. This will turn a tidy profit for little actual work.
In the art of scamming, this is considered the introduction. While little more than a precursor to the bait, this helps to bring the mark/target (me) into the scam.
So I reply:

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The domain in question is currently listed for sale at Sedo
Per their user agreement
Please kindly read the topic: Solicitation of an offsite sale which I have cut and pasted here.
Sedo works hard to provide the Internet’s #1 domain marketplace. Soliciting domain sales outside of the Sedo marketplace for the purpose of circumventing fees that would otherwise be due to Sedo is strictly prohibited. This includes using user contact information obtained from Sedo or using any of Sedo's services or features to offer to sell any listed domains outside of the Sedo marketplace or sending unsolicited commercial email offers to bidders that have bid on your domains, or any domains listed on the Sedo marketplace.

As you can clearly see, for all domains listed at Sedo that I haven't already been in negotiation with a buyer before posting them for sale at Sedo's site, offers and sales are required to be handled through Sedo
Please make an offer via the domain purchasing utilities at Sedo.
I’m certain you can understand my reluctance to offer anything that might constitute a business arrangement outside of Sedo for this domain.

Thank you,
Kevin Oedekoven
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If this was a legitimate buyer, I would have expected negotiations to proceed through Sedo, or at the very least (for a complete novice) an email asking for details on Sedo and a request on how to proceed.
Instead of following my request (not a good thing if you're really interested in making a sale) the response that follows doesn't even follow simple bait and hook rules of a well articulated scam, rather its both the bait and the hook to this scheme.

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Kevin,

Can you accept 12000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals.
Without valuation we cannot be sure in the sale price. It's very important for me in terms of reselling too.
But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this posting from archive:
http://somewhere.scammersite.tld/Archive/298460.htm (changed for your protection)
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% - 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we'll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
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Wow, bait (12000 USD) and hook (go here to get an appraisal - which costs money) in one punch.
And bad form to boot.
Apparently this guy doesn't understand my views on appraisals (see articles above this one.)
So I ask myself, Why would an appraisal need to be paid for? And why not use Sedo?
The only answer possible is that somehow the individual I'm dealing with likely gets a cut of the "appraisal" (note the quotes) proceeds.
And that's exactly how this scam works.
After the appraisal is paid for, the "buyer" (again with the quotes) will at best quietly go away. Or he might scam you into getting appraisals on other domains in your portfolio before slipping back into the anonymity of the net.
So this is obviously a scam, how do I make this guy go away?

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Please direct all domain name related requests through Sedo.

Thank you,
Kevin
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End of story.

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