Good Morning Folks!!
I would love to give the details of the sale but by contract I am not allowed.
However if you read my past posts, the secrets of how I approach this are all
there. NOW maybe the industry will REJECT the "X" factor. This was
CRAP introduced by the VC guys that has NOTHING TO DO WITH DOMAINS!!!!
If domainers want to be FOOLS and keep selling for "X", I will keep saying that domainers are leaving a FORTUNE on the table and don’t understand the anatomy of a great domain name. Maybe this will blow the lid off all the appraisals services. They are ALL WORTHLESS. Absolutely worthless. Not a single one has a clue. Not a one and SCAM is usually the first thing that comes to mind when I read a worthless appraisal that somebody actually paid for.
ireport.com sale shows that conventional valuations are fundamentally flawed as
they do not take into account the biggest part of what makes a domain name valuable.
When I say something like this, appraisers tilt their head like the RCA dog.
They react like I am talking a different language. So this is why I give no
credence to ANY domain appraisal service. They are ALL worthless and many are
slanted depending on their circumstance while others are pure rubbish. If
someone waives an appraisal in my face they get a laugh right back in their
face. It is like wearing a billboard that says, “I am a clueless rookie.”
To come to a true value it would have to be by committee and that committee would have to be made up of successful domainers as well as others. Without discussing all the possible attributes of a domain name it is impossible to come up with a value. Those buying and selling based on "X" are playing somebody else's game. Don't be foolish enough to swallow their silly valuations. I have said this over and over for year after year and maybe since some of these players have disappeared as fast as they appeared, maybe now folks will take notice. Like I said, I have blog posts about it right here for anyone willing to dig!
Now I admit that ireport.com was a perfect storm. All the elements were in place for a pretty big payday. However what the following years will show is this “Perfect storm” will be repeated by me and others many times.
While I can't go into the details of the negotiations, what I can say is it took several months and the main sticking point at contract time was whether this sale would be made public. Something for me that was non-negotiable. I would have walked from the sale if I could not report and publicize it. If DNJournal could not include it in their updates. The deals never reported would make everyone here, think differently about their assets. Still, folks are more focused on traffic and stats and "X" than they are on what makes a domain great and have value and have great value to others before that event even materializes..
$750k is a stepping stone. What it does is take what we do from theory to reality. When we look back at this sale in 10 years, people will say it was cheap and should have been sold for 10x that number. It's a stepping stone because sometime soon it will be unusual for any good domain to sell for under 7 figures. Then 8 figures. We are entering the period of time where we will see some significant domain sales. During this slow down or recession, it will be the DOMAIN INDUSTRY that is the shining light on the hill. A place where great fortunes can and will be made. Times like this fuel emerging growth and we are more than emerging. We are busting out when everyone else is bailing out. We are positioned very well and this rocky financial environment we are in will benefit the domain industry more than any of us could do alone or collectively.
a GREAT day!