Domain Brokers and crazy prices!
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Just emailed a domain broker about an EMD, looked like a nice short domain and thought a little site off this domain would work well.
Domain was a .co.uk, gets around 1,600 ems a month but specific to a service so no room to open it up, even still as a little site that would just turn over I was interested.
Say average price of service £50.
They come back with: Please make an high $X,XXX offer.
I reply: I could rank a non-emd (branded) domain using $XXX with guest blogging for the same term.
There logic for the price quoted: If you take £25 profit from each sale, you only need to sell 400 to make your money back.
This is coming from one of the largest domain brokers in the US.
What a silly way of valuing a domain.
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They are just looking to find someone who is a sucker. Hold to your pricing and eventually they will crack. But at the end of the day something is worth what someone will pay. So it could be valued at that if they are able to find someone who is dumb.
So it really boils down to, is it worth it for branding? If not, don't get emotionally attached and move on to another domain.
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