I was recently discussing the reseller's market w/ a domain name vet who characterizes the sale of midrange names to wholesalers as "having your names sweated out of you". (By midrange, I mean the broad, general category of names that experienced domainers, (not the general public), view in the above averege to almost very good, range- not quite very good or premium ), and the name category w/ the highest number of transactions, and the names making up the bulk of most domainers portfolios.
Other than a few occasional and delightful exceptions, exchanges like Afternic Bazaar, eBay, and domain name forums, (there are some enduser sales, but from my experience, resellers account for most of the buying/selling traffic and activity at these sites), the buyers are looking for bargains- low or underpriced names, names that will fill specific, but not pressing needs, names that can be picked up, at, below or near wholesale pricing. (or what one would expect to see in a "reseller's market". (It's surprising to see how long it takes people, including myself, to figure this out.)
Enter the down and dirty world of the domain name sweatshop. This is the gauntlet. The acid test. Don't come here with any lofty, (or non-lofty), ideas or illusions that your names are going to receive very much respect. The reseller's market is where names go to cover losses. This is where they go to quickly find a new home and earn a few dollars for their owner before they drop. This is where names go, (the same names that were once being eagerly registered and touted), when they haven't quite reached their potential or haven't lived up to their owners expectations for them. This is a place where names are sacrificed to fullfiil their owners unforeseen and unplanned for financial squeeze. This is a market in which fair and legitimate pricing isn't always good enough and where fingers are crossed, hoping that perhaps it will go better this time than it did the last.
For the lionshare of names that are listed, the wholesale marketplace is a place where prices are trimmed down in increments of 1 1/2, and 2 and 3 and 4 dollars to entice a sale. It's a world in which pocket change is counted, the amount of which can impact a sale. Don't expect to receive the reg fee or low-mid $xx+/- amount that your name received at the appraisal board. Not saying that it doesn't happen, but selling midrange names at prices that are $10 or $20 above regfee, are the exceptions, and not the rule. If your name was appraised at $30, chances are, it won't receive a bid if you list it at $30. And, don't even count on it selling for $15 or at reg fee, for that matter. There are several high dollar sales that do take place in the reseller's market- 3LL.coms, strong dictionary words, high traffic names etc, but this is a fringe market, and doesn't fit the profile of the names in our model, which encompasses the bulk of the names that are listed in the reseller's market.
Most domainers can put their think cap on, do some hunting and come up w/ at least, a name or two that would be considered to be good and, occasionally, very good- by non premium, midrange standards. Generally, to sell a name to another reseller, the name has to be, at least, at this level, in which case it might sell at, or a few dollars above, regfee. If you have a name that measures up to the "occasionally very good" level, you might be looking at, on avg, a $15 or $20 profit. If the price is $5 or $10 above these standards, you probably won't get a sale. Remember, you are in the gauntlet. This is the acid test.
Over the past couple of years, I can think of at least 4 names that I sold, w/ prices ranging from $150 to $1500, that had been previously listed in reseller venues, w/ nary a bite or a show of interest. A couple of weeks ago, I had inadvertantly put two strong keyword names- one w/ nearly 400,000 OV searches/ mo, the other was right at 270,000. Thankfully, nobody offered me the $29 and $39 asking prices on these two names that had been mistakenly pasted in w/ the others in the list.
Add listing fees into the mix, and you can quickly find yourself running in the red due to the names that didn't sell- perhaps because they were priced a couple of dollars too high. (The way Regfly lists expiration dates, (2006,06,04) confused me once, and I screwed up the expiration date in my listing by 3 months ie 9mos reg remaining vs 12 mos. The guy emailed me all pi~~ed off about the mistake and demanded his $12.74 refund. I was happy to comply because the name hadn't gotten bid up to what I wanted, anyways- but this is a good example of the kind of people you might find yourself dealing w/ @ eBay. Meanwhile, while your "No Sale" emails stack up and you take another look at the listing fees that have accrued, the better names you had listed - the one's you had to think twice about - the one's where the price tag was probably a bit too generous - the names that you wouldn't mind seeing fail to sell - those are the ones that get swooped up or have started a bidding war where 8 bids have showed up 28 minutes before the auction closes w/each one going up $0.25 more than the last one!!
When you have reached this point in domain sales, congatulations! You have slid down into the gutter, and you now know, that you are swimming around in the domain name cesspool. :wave: