I’d rather own a $2k domain with 30 possible buyers than a $10k domain with one

I've been changing how I think about domain value.

A lot of valuation discussions start with:

• keyword quality
• extension
• length
• comparable sales
• search volume
• brandability

All useful. But I'm starting to think one factor should come much earlier:

How many realistic buyers actually exist?

Imagine two domains. Domain A looks incredible and could theoretically be worth $10k.

But after researching it, there's basically one company that would have a strong reason to own it.

Domain B looks less impressive and maybe has a $2k–$4k ceiling.

But there are:

• 15 existing companies that fit it
• several funded startups in the category
• agencies serving that industry
• possible software products
• businesses using worse versions of the same name

I'd probably rather own Domain B.

The reason is simple.

Price without buyer depth isn't liquidity.

If your $10k valuation depends on one company deciding they want the domain, you're not really holding a $10k asset.

You're holding an option on one buyer's decision.

And there's another problem. If the domain is valuable mainly because of one existing company or trademark, that might actually increase the risk rather than the value.

So before buying something now, I like asking:

Who are buyer #2, #3, #4 and #5?

Not theoretically.

Actually identify them.

If I can't get beyond: “Maybe a startup could use this.” that's not really buyer research.

A stronger domain might have several independent buyer groups:

1. Exact industry companies: Existing businesses using longer/weaker domains.
2. Adjacent companies: Businesses expanding into the category.
3. Startups: Teams that could reasonably launch under the name.
4. Product names: A company might not rebrand, but could use the domain for a product.
5. Geographic markets: The same commercial term might have legitimate buyers in multiple countries.

I also think this changes how appraisal should work.

Instead of:

Good name ==> estimate value

maybe it should be:

Good name ==> identify buyer universe → estimate realistic liquidity → estimate value

Because a $5,000 domain with a realistic 1-in-100 annual probability of selling isn't economically equivalent to another $5,000 domain with a much deeper buyer pool.

Curious how other investors handle this.

Before buying a domain, do you actually research potential end users, or do you mainly buy the name first and figure out buyers later?

And what's the minimum number of plausible buyers you'd want before investing serious money?