I often get emails to valuate brandable domains and usually, my response is a negative one. Don’t get me wrong, brandable domains are great to create a brand on, but when it comes to selling them, it’s much tougher. Brandable domains are like a lottery ticket to me and thought that it’d be interesting to compare them.
Most domainers already know what are brandable domains, these are domains that have no meaning in dictionary sense. They are not what’s called keyword domains and usually do not contain any dictionary word.
It is perfectly OK to register/buy a brandable domains and start your own business on it. But if your intention is to sell it, I wouldn’t recommend them. Keep in mind these are not 3-4 letter domains, those have their own category.
But sometimes, someone creates a certain brand and they can afford to pay the big bucks to get the domain and if you happen to own that domain, you’ve just won the lottery.
It’s a little interesting how human mind works. In collage, we used to calculate probability of the lottery and chances of a winning lottery are low that it’s almost impossible. But still, millions of people buy lottery on regular bases and once in a while, someone out of those millions, actually wins. Now you can talk all probability and math you want, but seeing it in the news that someone has won the lottery creates the urge to go buy more lottery tickets. I think that would never change.
Now let’s look at brandable domains. While I think you might have a better chance with brandable domain than a lottery ticket, the chances of you selling it are still pretty slim. But just like a lottery ticket, every once in awhile, someone gets a big offer and sells a brandable domain. I’m not talking about low end sales, around $100, which happen more often with brandable domains, but chance of getting a huge offer is pretty slim.
Even with lottery, a lot of people win small prizes, and that’s common. But it’s also more likely that those people are regular lottery buyers and if you were to factor in all the loses from non-winning tickets, they’d still be in the negative side.
Domains work the same way, usually, people who like brandable domains have many of them. And $10 reg fee and renewal fees quickly add-up and even if a sale a couple, they most likely wouldn’t pay for all others.
Again, I strongly recommend for newbie domainers to get away from brandables. I’d say you have much bigger chance with 2-3 word domains than 6-letter brandable.
Happy Friday everyone!