Dating.com sold for $1.75 million dollars. Too low or too high?

May 14, 2010 by  
Filed under Domain Sales

Yesterday, there was a big domain sale and the premium domain, Dating.com sold for $1.75 million dollars. There are many discussions regarding this domain sale and some said too low, some said too high price. For me, I think it would depend upon what the domain seller would do with the money. I believe he got a good domain sale and he could buy some decent domains at reasonabe prices. Yes, he may get 3 million or more if he waits a bit longer but he might have missed opportunities to capture more or less similar quality domains at very reasonable prices.

For example,

He may get 3 million dollars for dating.com in 5 years’ time by waiting a bit more.

But if he reinvests the money (1.75 million) in the domains in xxx,xxx range and if he manages to get $300,000 domains at $100,000 prices, his new porfolio would be equivalent to 1.75 x 3 =5.25 million dollars.

Therefore, I believe he gets a fair sale price if he decides to reinvest the money to acquire quality domains in this time of difficult economy.