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Bob Hawkes

Domain Name Sell-Through Rates

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By Bob Hawkes, Nov 21, 2019
  1. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    Absolutely agree (y)

    As mentioned in response to someone else, the original article was intended to have a section on the relationship of sell-through rate and pricing but it was getting too long. I still at some point am planning one around that idea. Thank you for your valuable contributions!

    In his excellent recent blog post @Michael has pointed out that even Mike Mann's sell through rate is 0.014% once you get to 5 figure names. In other words if someone had 100 names priced at that level even if your selling skills are as great as Mike Mann odds are you would need to wait almost your entire lifetime to get a single sale!

    Yes, a few people sell two 5-figure domain names in one day! But that is definitely the exception!

    Thanks again for your fine contributions, @Ostrados, and in particular stressing the important point that sell-through rate depends strongly on price.

    Bob
     
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  2. sharastar

    sharastar Established Member

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    Thanks @Bob Hawkes for this wonderful researched content on Domain names sell through rates
     
  3. Ariff BD

    Ariff BD Restricted (85-100%)

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    I am doing for 8 months

    total 35 domains among more than half(16) are non dot com .all hand registered

    I sold 8 domains but all in xx price

    So my rate is 23% among all & 42% in only .com

    Now I have at least 3 for long time investment, two airlines com & 1 es tld for spain. It can be increased if i have more sale...

    The biggest mistake was registering silly de,us,uk,live,online domain registration without thinking b ut i was a newbie...
     
  4. Ostrados

    Ostrados Entrepreneur Gold Account VIP

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    Actually when we talk about sell through rate we are taking about end user sales, sales between resellers do not count.
     
  5. Ariff BD

    Ariff BD Restricted (85-100%)

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    i am sure at least one of them was end user because i saw it was being used for the buyers business. Dont understand 2-3 domains becasue they are developed in russian or czeck or hungarian language...
     
  6. BradWilson

    BradWilson Upgraded Member Gold Account

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    Of course sales to other domainers "counts" just not for this STR data.

    Anytime you make a profit that counts and helps you figure out what works to improve your overall success rate which will ultimately increase your end user STR as long as you use that knowledge correctly.
     
  7. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    I agree. My view is that sales to other domainers should count but only for the price level that we are basing the STR on (therefore the sales at $$ the poster mentioned would not directly apply to as done in this thread as the STR had $100 cutoff).

    I personally like $100 cutoff. Fully accept some might like $300 or something like that or even $500. Absolutely right that people can, and should, do STR for what level they want. But with that level it seems to me immaterial who the buyer is as it is my performance that interests me, not how the domain name will be used.

    I personally think about STR as anything $100 and up as long as that sale was also profitable. That is if I bought a domain for $195 and sold it for $125 I would personally not include it, but if I had hand reg it at $8 and sold for $125 to a domainer I definitely do count it.

    What do others think in how they calculate their personal STR?

    Thank you for the contribution Brad.

    Bob

    EDIT Just to point what eliminating sales to domainers would mean, there was one sale within the last 12 months at $900,000 to a domainer and another (I think, less sure) at $1.25 million. Surely we should not be ignoring sales like that in STR calculations! Some domainers have a business model where they mainly sell to other domainers. I see nothing wrong with that, even though it is not the route most aim for. As long as they are net profitable overall. I would still if I was them calculate a personal STR to see if I was doing better or worse year by year.
     
    Last edited: Nov 25, 2019
  8. BradWilson

    BradWilson Upgraded Member Gold Account

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    I look at all results as an experiment and any sales to resellers as a partial success.

    I adjust my future purchases according and over time it seems to be working. Although I'm currently way too distracted to focus on my optimum approach fully.
     
  9. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    There is a direct correlation between quality of domains, asking price, and STR.

    The higher the quality and lower the price the higher STR.
    The lower the quality and higher the price the lower STR.

    Exposure also matters a lot. You are going to have a far lower STR if domains don't have for sale landers and are not listed on popular venues like GoDaddy/Afternic and others.

    If domains are priced they tend to have a higher STR.

    If you are good at negotiation that can help STR rate as well.

    There are so many factors to consider.

    One thing to keep in mind though is everything you did sell has to cover the expenses of everything you didn't sell.

    Brad
     
  10. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    never trust a statistic
    you didn't fake yourself


    sell-through rate doesn't take the sales price into the equation
    so it's not a very important number
     
  11. Ostrados

    Ostrados Entrepreneur Gold Account VIP

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    On the contrary, I learned from real life that statstics is like magic! I learned that from managing Google adwords for my website through several years, I have specific conversion rate from my historical stats (lets say 5%) now from every 20 clicks on my Ad I get one conversion, what I noticed is that it does not matter if I got 20 clicks per day from one AD or 5 clicks per day from 4 different ADs (4×5), I will end up with 1 conversion. Or sometimes the traffic is very slow and I have like 18 clicks, so I add another country that generates 3 extra clicks, and then 1 conversion comes from those 3 clicks! thats because the total became 21 clicks in that day and statistics demanded that 1 conversion lol.

    Agree we discussed in previous posts about the importance of sale price and how it is directly correlated with STR.
     
    Last edited: Nov 26, 2019
  12. TauseefKhan

    TauseefKhan Established Member

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    good article. Bob

    Sell Thru Rate is a tricky question.

    Same yardstick cant be applied to all domainers.

    Some domainers invest only in certain niche or categoris that may yield good sell thru rate (Example - a person holding large part of domains related to hemp/crypto may have more sell thru rate)

    Some domainers may try hand on almost all categories and may face low sale thru rate. (Because of very few domains in each category)

    and there are lot of other aspects.
     
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