Mike Mann talked again on Facebook about his new crowd appraisal system that he is rolling out soon.
Here is what he said:
“What is a Super Premium Domain Name? One that appraises over $10,000, by taking the average appraisal of 3 long time top expert domain dealers at once. It’s too complex and spreads too great to do it any other way and still be accurate. Our new crowd appraisal system rolling out soon will help discover true domain industry market values for everyone.”
“Domain appraisals are someone’s opinion based on available data; are you going to trust a bot to create a price? A corporate executive, lawyer or accountant in a suit? A domain broker who would sell his sister for a nickel? Someone trying to pump up their stock price and bonuses? Or disinterested third party professionals who have done the most real world transactions?”
He also talked about premium .com domains and how the bid/ask spread is huge:
“The bid:ask spread is huuuge in the super premium .Com domain trading space, which helps make the investment very risky, expensive and time consuming; however it also leaves enormous margins to arbitrage for potentially enormous future profits. It’s too hard for others to compete, and there is still considerable room for innovation in tech and marketing and helping the public discover the true long term value of this special asset class. Super premium .Com domains are incredibly profitable long term investments if handled properly; they have little relationship to the hundreds of millions of crappy domains for sale in the world, at totally random not professionally appraised prices, in poorly organized marketplaces.”
Here are a few more articles on the upcoming Mike Mann and DomainMarket.com appraisal system:
Mike Mann plans to allow people to sell domains on DomainMarket.com
The new Mike Mann premium domain brokerage (more details)
DomainMarket.com new domain brokerage and appraisals
Mike Mann’s domain appraisal/brokerage: Some good and bad news!
Mike Mann’s crowdpricing domain appraisal system will have 4 appraisers
$10,000 is a very low threshold to describe a domain name as “super premium”. Perhaps that’s why so many people dislike the term ‘premium’, as it’s so overused and meaningless. $10,000 domains are fairly ordinary these days. If a $10,000 domain is “super premium”, what is a $100,000 or $1,000,000+ domain name?
Anyone can use the term “premium”. But they should explain what it means to them.
Very well said! Completely agree with you.
>”Or disinterested third party professionals who have done the most real world transactions?”
It just doesn’t get any more clueless than that.
And “disinterested” ay? Yeah, right. “Professionals” ay? Yeah, as in, L-O-L.
“Real world transactions” often have no bearing whatsoever on the real value of a domain. They are simply what has occurred, not what should have occurred based on real value.
It’s not rocket science. “Real world” my eye. The “real world” involved in what a domain is worth is what can be done with it in the real world, how much revenue and profit can realistically be earned with it, how much competitive advantage in business and market dominance and status it can confer, intangibles such as prestige, cache, authority, psychological resonance, etc. “Real world transactions” that have already occurred have nothing to do with any of that, and only may or may not have resembled or approximated real value.
Get a clue – this is where the great real estate analogy does not apply and breaks down – as in, by definition analogies are not perfect comparisons.
So indeed in the “real world,” sales of so-called “comps” or “comparables” have bearing, but not always and often not at all in the real world of domain names – because you do not always have the same existence of true “comparables” the way you do with a row of houses on the same block or in the same neighborhood.
The only thing he gets right is the human factor vs. bots.
And all this and more, by the way, is why I can easily show you a nice three word .com that is plainly, soberly, and realistically worth 9 figures (lions and tigers and bears – perish the thought), but as I’ve said before I won’t. Just not in my best interests to point to one like that now as I’ve also said before.
Okay that’ll do for now. Thanks for a post that got me in the mood to say something, K. 🙂
By the way, who knew anyone would ever use the old expression “my eye” this far into the 21st century? 😀 But I wanted to keep it clean. And otherwise, by the way, I love the imperfect real estate analogy…
Any amount more than the usual cost is premium.So it doesn’t matter whether its low or priced in the $10k.I beleive we all have our way and reasons for pricing our domains.