Please quantify reseller/wholesale value

Angela C · 05-15-2008, 08:45 PM

If a domain is worth $1000 to an end user what is the industry standard range for the reseller/wholesale value?

Thanks for any opinions.

Takwa · 05-16-2008, 02:54 AM

I think max 20% depends how hot is the name really

Angela C · 05-16-2008, 10:26 AM

So the maximum wholesale/reseller price is 20% of retail/enduser.

Does anyone have a different take on the industry standard?

tinner666 · 05-16-2008, 05:29 PM

20% is about where I would draw the line.

TordB.com · 06-15-2008, 08:55 AM

Can someone please explain to me what that whole wholeseller thing is?

nielsencl · 06-20-2008, 09:41 AM

Wholesale is a lower price that is paid by someone who is (generally) not going to keep the item but sell it for a higher price to an end user or "retail" customer. In business, you generally try to sell it for about twice what you pay for it, but this depends on the compitition and the selling price. The profit from the sales is often described as the "profit margin" or just "margin" and is a percentage.
????: NamePros.com http://www.namepros.com/domain-newbies/469895-please-quantify-reseller-wholesale-value.html

I was surprised to see people state 20% as an average profit and wonder where that comes from given the low trader numbers? :-)

I'm always open to learn more about this business, but from what I've seen so far, the end user price really depends on how much they want the domain and their ability to pay. Here's an example: I bought a .org name here for $5 and parked it. 6 months later I got an offer from a broker at SEDO for $450. I was pretty happy, but I wanted to make sure I was really selling the domain for what it was "worth". I researched what the other main TLDs were selling for ($1,000-$2,500) and said that I thought the domain was worth more. The broker said the offer was pretty good and asked me how much more? I said less than $1,000. The next thing I know he tells me he will buy the domain for $1,000! Yes, I was very, very happy.

Later I found out that the "end user" was a giant telecommuncations company in Germany. I probably sold that domain for 20% of what it could have sold for, and who knows how much the broker told the client it cost...?

So I think it really depends on your knowledge of the industry and the buyer, but also your ability to make a deal. I have no regrets about selling a $5 domain for $1k, but I will try to get a better sense of where the buyer is at next time by asking for more if I have any clue that it may be possible to do that.

05-15-2008, 08:45 PM	THREAD STARTER #1 (permalink)
Angela C NamePros Member Join Date: Feb 2008 Location: Colorado Posts: 119	Please quantify reseller/wholesale value If a domain is worth $1000 to an end user what is the industry standard range for the reseller/wholesale value? Thanks for any opinions. __________________ List your domains at PushToAuction.com. It's FREE.

05-16-2008, 02:54 AM	#2 (permalink)
Takwa NamePros Regular Join Date: Apr 2008 Posts: 445	I think max 20% depends how hot is the name really __________________ Domain Geo - Make money on domain names

05-16-2008, 10:26 AM	THREAD STARTER #3 (permalink)
Angela C NamePros Member Join Date: Feb 2008 Location: Colorado Posts: 119	So the maximum wholesale/reseller price is 20% of retail/enduser. Does anyone have a different take on the industry standard? __________________ List your domains at PushToAuction.com. It's FREE.

05-16-2008, 05:29 PM	#4 (permalink)
tinner666 NamePros Regular Join Date: Jan 2008 Location: Richmond Va. Posts: 209	20% is about where I would draw the line. __________________ $7.49 Domains @ Domain Sales Zone Coupons: 100CN15, 50CN10, 5NC25 Internet Crimes Complaint Ctr. Albert's Specialty Roofing

06-15-2008, 08:55 AM	#5 (permalink)
TordB.com NamePros Regular Join Date: Jun 2008 Posts: 236	Can someone please explain to me what that whole wholeseller thing is? __________________ Thanks for answering my questions :)

06-20-2008, 09:41 AM	#6 (permalink)
nielsencl Senior Member Join Date: Jul 2006 Location: Minneapolis Posts: 2,513	Wholesale is a lower price that is paid by someone who is (generally) not going to keep the item but sell it for a higher price to an end user or "retail" customer. In business, you generally try to sell it for about twice what you pay for it, but this depends on the compitition and the selling price. The profit from the sales is often described as the "profit margin" or just "margin" and is a percentage. ????: NamePros.com http://www.namepros.com/domain-newbies/469895-please-quantify-reseller-wholesale-value.html I was surprised to see people state 20% as an average profit and wonder where that comes from given the low trader numbers? :-) I'm always open to learn more about this business, but from what I've seen so far, the end user price really depends on how much they want the domain and their ability to pay. Here's an example: I bought a .org name here for $5 and parked it. 6 months later I got an offer from a broker at SEDO for $450. I was pretty happy, but I wanted to make sure I was really selling the domain for what it was "worth". I researched what the other main TLDs were selling for ($1,000-$2,500) and said that I thought the domain was worth more. The broker said the offer was pretty good and asked me how much more? I said less than $1,000. The next thing I know he tells me he will buy the domain for $1,000! Yes, I was very, very happy. Later I found out that the "end user" was a giant telecommuncations company in Germany. I probably sold that domain for 20% of what it could have sold for, and who knows how much the broker told the client it cost...? So I think it really depends on your knowledge of the industry and the buyer, but also your ability to make a deal. I have no regrets about selling a $5 domain for $1k, but I will try to get a better sense of where the buyer is at next time by asking for more if I have any clue that it may be possible to do that. __________________ Lorraine Bowman - Internet Expert Witness - Bankrupture - Ad Creation Marketplace - How To Sell Domain Name

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)