A lot of people make the mistake of thinking that *all* category killers can fetch huge prices because they fail to understand that not all end users have the same type of financial strength. Simply put, there are several “categories” with end users who simply cannot afford to pay huge prices, not even for the very best domain.
On the one hand sure, if we’re talking about the insurance industry, about the auto industry and so on, there’s definitely a lot of money on the table.
On the other hand though, let’s assume you own the domain LemonadeStand.com (this can actually be used as a brandable by large companies in industries not related to lemonade but let’s leave that aspect aside and assume that’s not the case). For kids who make money through a lemonade stand, it’s the best possible domain.
Are there lots of end users for LemonadeStand.com?
There sure are, several in pretty much any large city.
Is LemonadeStand.com the best choice for those end users?
Can the end users in question afford to pay a huge price?
Unfortunately, they cannot.
You see, despite the fact that there are lots of end users for the domain, we’re talking about kids who can in no way afford to pay a *lot* of money. Being the best possible domain is not enough, you also have to analyze the financial capabilities of the end user base.
Now as mentioned previously, LemonadeStand.com could be a great brand for a large business that might not have anything to do with lemonade but I’m sure you understood the point I tried to get across: some category killers can simply not fetch huge prices.
Not because end users don’t want them, not at all.
A lot of end users want LemonadeStand.com but unfortunately, they cannot afford to pay a price that would make the owner extremely happy.
Don’t make the mistake of assuming that just because a domain has a lot of potential end users, it will without a doubt sell for a huge amount. Always see things from the perspective of the end users in question as well, the financial capabilities of the end user base is a variable you can’t afford to ignore.