Something is not right

Let's assume you are in the business for a nice new car. Knowing value and the worth of solid investments you start looking at the best cars. Visiting a Mercedes auto salesroom or shopping on line with GOOGLE, it’s easy to see what you want is going to be expensive. A 350 S-Class Mercedes would cost you dearly and set you back about 100 big ones. Being a little short of cash you decide to think it over.

A few days later you noticed that there is a Mercedes sale, and you rush in to check the newly reduced prices. And yes, there it is - your dream mobile now on sale at an incredible low price, dropped to only $20,000. Nothing should stop you now; you finally can own the brand new limousine of your dreams. But would you buy it?

Of course, you know the story is pure fiction and will never happen. But if it would, what would you be thinking? Discarding the many impossibilities of a luxury car price being reduced by some 80 percent, the thought comes to mind that there must be something wrong. Maybe the car has no engine, or was made by the people who made Trabbies (cars made in East Germany), carries no warranty, or you have to return it after one week. Whatever the case might be, you would know something is not right.

The same applies to reduced domain names. Something is not right when a domain asking price drops from $100,000 to $20,000. What is the purpose of such huge domain price reduction? Either a reduced domain was grossly overpriced in the first place, or it is indeed totally worthless. 

Opposite to the many real domain sales success stories and quiet, behind the scene negotiations to reach agreeable pricing, there are inflated domains, whose irrational, radical price drop only serves to reduces the domain to junk status in the eyes of everyone except those of the seller, who dreamed up a hugely unrealistic asking price in the first place. Erratic pricing, inflated reserves as well as domain name price dumping only serve to confuse and scare away end-users, which precisely is the market segment most domainers trying to reach.

Experienced, responsible domain sellers and professional domain brokers will continue to achieve their goals without huffing and puffing, thus creating and upholding a trustworthy business climate where domain buyers can shop, bid and acquire domains with trust and confidence - without all the hype of a fire sale.