Sphinn - Money.co.uk Smashes Domain Record

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Sphinn It!

Went Hot: April 22, 2008 - 8:40 am
Posted By: Lyndon 172 days ago
Topic Type: News Story (Jump to http://www.chocolatecreditcrunch.com)
Category: Domaining

Looks like the domaining market is still hot to trot.

4 Comments

Who Desphunn This (0)

Comments

from Lyndon 172 days ago #

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I've just been asked is this true as I have been known to be economical with the truth for narrative purposes in the past. Yes, it's true.

How do I know?

First, let me say that it had nothing to do with a drunken night out at Spearmint Rhino as I have never even been and have no desire to. Secondly, there isn't really a second part to this but I like that you thought there maybe.

Lets just I have some very interesting types in my IM list.

btw, if you google Spearmint Rhino NSFW!

from Dudibob 172 days ago #

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"Money.co.uk just sold for a whopping £1.2 million, that’s $2.4 million in proper money" wtf? 'proper money'? and what's wrong with her Queens pounds? :/

anyway, I'm not sure how they came to a figure like that, from an outside look, 900 links, 800 pages indexed, not enough data in compete... It has the potential to go far with that domain name, but in it's current state, £1.2mil? seriously?

If someone wants to show me why it's worth 1.2mil please do so

from NickWilsdon 172 days ago #

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@Dudibob

Well two points that might help you understand the value. First domainers are looking long term, sometimes even 20x annual return the second reason though is that there is only one money.co.uk. They speculate this will push the prices for one-word generic domains one way - upwards.

You can see their point - a global internet market and one product. The law of supply and demand definitely points to them being right (unless we get a flood of popular new domain extensions!).

At the end of the day though, a domain is worth what someone will pay you for it. Domains valuations have more in common with stock market commodities than web businesses. Even if the bubble bursts again now, I still see lots of domainers rushing in to pick up the bargins.

from johnandrews 171 days ago #

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In the world of "domain valuation" they are now talking about two "values". One is "true domain value" which is obviously elusive, and addresses what Nick says above about long-term thinking. The other is "liquidity value", which represents what you could get if you sold it on the market.

Obviously both values will flux with time, market conditions, and beliefs about the future of Internet commerce etc.

Since it sold, the price represents the liguiditiy value that existed in the domain at the time of sale (assuming it was a well-publicized offer for sale, accessible auction, etc). Does it represent a good deal? A friend once told me "never pay retail; always get a discount" and a merchant friend continued "never settle for a discount; always get a bargain". If they paid market price, they paid the liquidity value. If they had an edge for some reason, maybe they got a bargain (priced below liquidity value) and could flip it for a profit. But if they saw future potential (thus viewing it as a bargain), they will have to wait until the liquidity value matches that expectation or do the development needed to get there.

Bottom line is we are not qualified to judge if a price paid was sensible or not, unless we question the validity of the market process or have done enough research to accurately estimate the true value (and have considered the costs of currency and development etc).