[timr]

Yeah, but you have to scale the projections for uncertainty about the future, and exaggeration by the seller.

In particular, if someone on the internet tells me they’re making $x a month from spammy ads on a squatted domain, I immediately discount the claim substantially due to bullshit. I increase the discount rate if the person making the claim is trying to sell me said domain.

[julianeon]

True, but if the guy contacting you is the actual owner of the website you use to buy domains, his credibility increases enormously. He said this person was a customer on his platform. When that guy says "I have a website which is making 10k/year," and I already trust the domain platform he created because I use it as a customer, I believe him.

[thrownthatway]

> I believe him.

Enough to be motivated to proceed with due diligence.

Whatever any potential buyer considers that to mean for them.

[timr]

You really think the owner of the marketplace doesn’t have an incentive to convince you to make a sizable transaction?

[vel0city]

Projected revenues for this domain is at $100k this year!

How much are you trying to sell the domain for?

Uhh...about $100k.