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Pricing:

This is a very touchy subject and I will not dwell on it for long.

How do I know I’m paying the right price? Well, you don’t BUT what you can do is surf the forums and see if a similar name or industry domain is at what you are asking to pay. If you don’t see anything similar, we come back to part 1 of this guide in the fact of ASK! Now, saying that, don’t base your purchase off of one opinion, it doesn’t hurt to ask others as well. That way you can at least get an average. Also, do not be surprised if what you are saying you are willing to pay doesn’t fly with the seller. Sellers are pretty particular in prices for their domains. I would say at least 20% have set their own prices but the remaining 80% have done their homework. Does that mean you won’t get the domain you want because the seller isn’t budging on his price? Possibly BUT remember, it’s their property and not yours and they can sell it for whatever they like.

I’ll equate another industry that is similar to buying and selling domains and that’s the housing industry. Here’s the quick scenario:

You have a row of 100 houses in a sub-division and the average price is $100,000, we’ll equate this sub-division with LLLL.coms (remember what that is? If not, go back to part 1 of the guide.) And let’s say 1 house owner decides to sell for $75,000, does that mean that his sale is going to affect the pricing of the other 99 houses?, probably not! BUT on the other hand, if 20 of the house owners sold their houses at $75,000, now we have a shift in the market pricing for the rest of those houses that are unsold. The average house is now cheaper just because of those 20 sellers. Now if you do the reverse and the 20 sellers sell for more than $100,000, then the market shifts upwards. It’s exactly the same in the domain world. Remember what I was saying earlier about the domain sellers and the market trends, same thing, SO, taking that into consideration, be careful how you sell and how you buy. If you speculate that your domain, based on your research is going to go higher, then it might be prudent to hold off selling, on the other hand if you expect it to drop, you have 2 choices, sell what you have at the current market rate OR wait it out hoping that the market will swing your way.

There are a 1000 other ways to base pricing and this is just one of them. Remember that this is my own guide and it is 100% up to you if you use this guide or not.

Domain speculation is a big part of this industry and don’t forget that.

Part 4 to follow soon.

04-28-2008, 10:04 AM	· #8
rhinoz Senior Member Name: Sand & Ice Seller Location: Michigan Trader Rating: (60) Join Date: Feb 2008 Posts: 1,061 NP$: 34.00 (Donate)	Pricing: This is a very touchy subject and I will not dwell on it for long. How do I know I’m paying the right price? Well, you don’t BUT what you can do is surf the forums and see if a similar name or industry domain is at what you are asking to pay. If you don’t see anything similar, we come back to part 1 of this guide in the fact of ASK! Now, saying that, don’t base your purchase off of one opinion, it doesn’t hurt to ask others as well. That way you can at least get an average. Also, do not be surprised if what you are saying you are willing to pay doesn’t fly with the seller. Sellers are pretty particular in prices for their domains. I would say at least 20% have set their own prices but the remaining 80% have done their homework. Does that mean you won’t get the domain you want because the seller isn’t budging on his price? Possibly BUT remember, it’s their property and not yours and they can sell it for whatever they like. I’ll equate another industry that is similar to buying and selling domains and that’s the housing industry. Here’s the quick scenario: You have a row of 100 houses in a sub-division and the average price is $100,000, we’ll equate this sub-division with LLLL.coms (remember what that is? If not, go back to part 1 of the guide.) And let’s say 1 house owner decides to sell for $75,000, does that mean that his sale is going to affect the pricing of the other 99 houses?, probably not! BUT on the other hand, if 20 of the house owners sold their houses at $75,000, now we have a shift in the market pricing for the rest of those houses that are unsold. The average house is now cheaper just because of those 20 sellers. Now if you do the reverse and the 20 sellers sell for more than $100,000, then the market shifts upwards. It’s exactly the same in the domain world. Remember what I was saying earlier about the domain sellers and the market trends, same thing, SO, taking that into consideration, be careful how you sell and how you buy. If you speculate that your domain, based on your research is going to go higher, then it might be prudent to hold off selling, on the other hand if you expect it to drop, you have 2 choices, sell what you have at the current market rate OR wait it out hoping that the market will swing your way. There are a 1000 other ways to base pricing and this is just one of them. Remember that this is my own guide and it is 100% up to you if you use this guide or not. Domain speculation is a big part of this industry and don’t forget that. Part 4 to follow soon. Please register or log-in into NamePros to hide ads __________________ $25 logo's Plus custom graphics work.