A simple question but one I have never heard asked.
Has anyone ever lost money on a domain??
Specifically what I am asking has anyone ever bought a name for a premium at a drop auction, private purchase, or industry auction and then resold the domain for less?
In my experience I have never heard of it.
We have never bought a domain and sold it for less later on.
To be clear I am not talking about registering a name for $7 and then letting it go the next year. I am also not talking about domain purchased solely because the are long tailed domains for the traffic, which at some point dries up.
I am talking about investment grade names purchased in the 4 figures or higher.
What got me thinking about this is the recently listing of lips.com at the DRT auction for $140K.
The auction listing said the domain was purchased at a previous TRAFFIC auction for $125K. The owner was, according to the listing, offering the name at a starting reserve price of the same amount they purchased the domain for.
The domain did not sell, but then again very few domains sold at that auction.
We all know about lots of domains which were acquired a price “x” and then sold shortly thereafter or years later for x2, x5, x10, or more.
SO the question is have you ever, or heard of any domain selling for less than the owners purchase price?
If the answer is the same for you, as it is for me, which is it never happened to me, never saw an instance of it, never heard of it, then therein is the inherent value of domains. Unlike any other asset know to man, real estate, stocks, bonds, commodities, domains do nothing but appreciate.
This would make domains the greatest investment of all time.