Just made a 100K offer for a domain. Am I crazy?

My partners think I am, they say no domain worth that much. What am I missing?

Yes, I paid slightly more than I probably should've for a domain (no-where near this much but in terms of how important it was) and it'll hinder you from making future pivots or product changes which could be bad.

When looking for domain names I found one that was on sale for $100k, simply as a joke I offered $10k and they accepted this. Obviously I don't even have that but it probably means you don't need to pay so much. Most people look at how much domains were worth in 2000 and think they can start the bidding at that price.

If the name is still for sale and they're willing to sell it, it probably isn't worth what they're asking for it. If you can find someone with experience in the space that you trust, this helped me a lot. Traffic is also key in most names, unless they're a short one word .com they aren't worth much without a lot of traffic.

There's not enough information to make a judgement. It's like saying "Is a house worth 100k ?" - without knowing the details it's impossible to say.

There are definitely domains that are worth millions of dollars, but there are far more domains that are worthless.

A good point to start is by saying "how valuable would this domain be on the open market at auction ?"- if you don't know you can get specialist with expertise in the domain market who can value it for you.

What is the long-term plan for your company?

If you are going to be raising investment from Angels or VCs, are they going to look at your domain purchase and think this was a wise investment? Or are they going to think you were being frivolous with money?

Will the name actually have a significant affect on your business? You'd be surprised how many great domains are still available.

Do you think you could flip it? If the domain is only valuable to you, it probably isn't that valuable. Do you think somebody else would want the domain if you decided not to use it? Or would your money just be gone?

Just a few things to consider.