Categorized | Domaining Tips

The “Who Owns Similar Domains?” Factor

Posted on 28 September 2010 by Andrei

Is the price you are able to obtain for a domain affected by the “Who owns similar domains?” factor? In other words, should you as a domainer who owns let’s say UsedCars.com care who owns UsedCar.com or BuyUsedCars.com? Let’s find out!

Supply and Demand 101

There will always be companies willing to pay top dollar for a good domain, just as there will always be companies which simply go with whatever they can hand reg.

As far as our potential buyers are concerned (companies which are interested in buying a quality domains), you need to understand that a lot of times, there are things that you cannot control which can and will affect the price you are able to obtain from certain buyers.

Who Owns Better Domains?

Let’s assume that you own UsedCars.net, an excellent domain. Let’s also assume that your asking price is $100,000. Now a lot of savvy buyers (of course, not all of them) like to see how things stand as far as the domain market is concerned, so they will probably submit offers for all sorts of versions (UsedCars.com, for example).

If you have something a buyer desperately wants and know how to negotiate, you’re in an excellent position to obtain a great price. But what if the owner of UsedCars.com is willing to sell it for $150,000? If that is the case, buying the .net for $100,000 will simply not make sense and the list could go on and on.

The bottom line is that if the people who own better domains (for example UsedCars.com vs. UsedCars.net) are willing to sell them at a great price for the buyer, that complicates things for you.

Who Owns “The Next Best Thing”?

Alright, let’s assume that you’re the owner of UsedCars.com and that your asking price is $750,000. If someone wants to sell used cars, this domain represents the best choice.

But, unfortunately for you, if another domain owner would be willing to sell UsedCar.com for only $30,000, a LOT of buyers will think twice before buying your domain. If “the next best thing” is available at a very low price compared to what you’re asking for your domain, selling the domain might end up being quite a challenge.

Will buyers always submit offers for more than one domain? No.

Will there be buyers who will want your domain and wouldn’t even think about going after the next best thing? Yes.

I like to stay away from generalizations but all in all, it’s safe to assume that when it comes to a LOT of buyers (but NOT all of them), the “Who owns other domains?” factor will definitely play an important role and as a result, taking it into consideration would be the smart thing to do.

10 Comments For This Post

  1. LB Says:

    Great point and not just domainers; the best place to be is if all the other domains are registered by businesses using them.

  2. sillyme Says:

    I wonder in 20 years when all weak players are weeded out what the prices will be for the very good domain. In time I think each very good domain will be bought slowly for more money and it will be harder than ever before for startups to affordvery good domains.

  3. nmwando Says:

    Why not buy them all out hehehe

  4. self defense weapons Says:

    I wanted to stick to generic words, since generic words cannot be trademarked.thanks…

  5. electric underfloor heating Says:

    Why doesnt yahoo provide a button like “Block this address/domain” similar to “Spam” in the Inbox.

  6. electric underfloor heating Says:

    Amazing post thanks for shearing…

  7. Donna Doseck Says:

    You have some excellent points there. I did a research on the subject and I want to say that I noticed that almost all people will agree with your opinion.

  8. Trademark registration Says:

    Really digging the style for this site-nicely done. I am going to consider BlogEngine for my blog. WP is stale.

  9. self certification mortgages Says:

    Why doesnt yahoo provide a button like “Block this address/domain” similar to “Spam” in the Inbox.

  10. Hannelore Steere Says:

    Great post as usual – here is a little something that made me smile 🙂

    A city is a large community where people are lonesome together. 🙂

 
 
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