Domain sales are an unusual animal. You really can’t compare buying domains to buying a pair of the hottest designer shoes. There are different motives behind the impulse, making one easier to talk yourself out of than the other. Each domain is completely unique. You will never find the same one on sale in another size or color. The “designer” knock-offs of valuable domains might be the equivalent of the .net or .org variations, which still hold value, but can never be mass produced.
Motivation: The Impulse Enzyme
The common ground for all impulse is motivation. For the domain buyer, motivation might come from the business owner who comes across a premium domain with high value keywords related to his business. Or, he already has a known business name but the domain is owned by someone else. He just has to get his hands on the domain and might engage in a bidding war to get it.
Still other buyers might be motivated by seeing a great deal. Suddenly a great domain expires and should be scooped up before someone else grabs it.
Domains are all one-of-a-kind; unique pieces of real estate. Buyers might treasure them more like the avid art collector or the experienced domain flipper might see the potential in holding on to the domain and waiting for its market value to increase.
The key to controlling the impulse is bringing in common sense and distance from the transaction.
Common sense is derived from research. Decide on your price range beforehand by monitoring recent sales for similar domains. Let a professional domain appraisal guide you in the right direction. The professional appraisal will pool together algorithmic factors, trends, marketability and experience to give you a better sense of a reasonable price tag.
The domain broker can protect you from yourself. If the seller knows your motivation because your business or niche fits that of his or her domain, it’s natural to for the seller to expect you to pay more. Using a broker allows you and your motivation to remain anonymous. It’s akin to not letting the car salesman know how badly you want the car, only you don’t have to worry about hiding your expression.
The buying impulse leads to the high of owning something desirable or valuable, but without reason, that high can drop down when the realization sets in. There are going to be times when your impulse will serve you well and you snatch up a valuable domain at a great price and hesitation would have caused you regret. The key is finding that balance and having the education on the ins and outs of domain sales will give you better control over your impulse. Acting on impulse when you know what you’re doing is more sensible impulse than when you don’t.