Can high BIN scare buyers away？

ilucky21c · Oct 18, 2017

Hi,

Just want to ask, if I set high BINs, like 50000$ for each of my domains on sedo, afternic, uniregistry and many other platforms, will this scare the buyers away? The real reason why I am doing this is to lead the buyers to bid a price, and we negotiate, because sedo says that BIN setting just enhances the chance of sales for 3 times. Will BIN add exposure of domains? I set BINs for all of them, and set all the domains 50000$ or higher on other platforms, in case one of them is worth that much. I have to say, when it comes to put a price tag on my domains, I become a little "shamefully" greedy. Can't resist it~

Can experienced domainers express your opinions? Thanks for your help!

frank-germany · Oct 18, 2017

a high BIN can scare a buyer away no doubt

but it all depends on the name

if the buyer has alternatives he will walk away
if the buyer has no alternatives your BIN may be still to low

ilucky21c · Oct 19, 2017

infosec3 said:
The answer is yes, especially if the quality of the name does not completely match the price. I have reported here at some point a little story that illustrates this issue.

I had contacted an end-user for a CityBikeRentals.com domain, for which I was asking $750. He responded stating he was interested, but that he preferred the singular version, CityBikeRental.com and asked me if I owned it. I stated I did not own the name and he said he was going to get back to me.

I immediately visited the CityBikeRental.com name and noticed it was listed on SEDO or Afternic (don't completely remember) for more than 50K. When the end-user found out that the price for the singular version was so high, he called me a few hours later to finalize the domain transaction with me.

The point is that although his first choice was the singular version, he didn't even bother to contact the owner to make him an offer. I guess he saw it as an impossibility. I mean, who in his right mind would come down from 50K to $750?

Thank you for sharing. I think that makes sense.

ilucky21c · Oct 19, 2017

Yes. Thank you for you guys. I guess I ha

creataweb said:
Yeah just take a look here:

Only $1.5 million

I think he just wants to keep it for a long time.

ilucky21c · Oct 19, 2017

Thank you all for sharing your opinions! I think all make sense to me. I will make specific adjustments to my sales setting of each domain, one by one. I think as a beginner, I do have a lot to learn! Hope my first domain will be purchased by some end user in the very near future and I will come back to share my sales story!

TSB · Oct 21, 2017

Yes, because only end user can go for the high price and its hard to find them.

Isac · Oct 21, 2017

Right bin is key and not high bin

DOMAIN ILLUMINATI · Oct 21, 2017

Isac said:
Right bin is key and not high bin

Naturally, the right BIN price is always (the) right (key), no matter howww highhh

xynames · Oct 21, 2017

The BIN should be set at the domain’s value based on comparables and what you believe it is worth. I have BIN’s set as high as $75,000. If my intended BIN will be higher than that or if I haven’t yet calculated the domain’s value, then the domain is marked only as Make Offer.

Place a BIN at only one other marketplace besides where you have the domain registered to avoid conflicting sales.

It’s absurd to set BIN’s that have no bearing to market value, if that’s what you’re doing.

ilucky21c · Oct 21, 2017

xynames said:
The BIN should be set at the domain’s value based on comparables and what you believe it is worth. I have BIN’s set as high as $75,000. If my intended BIN will be higher than that or if I haven’t yet calculated the domain’s value, then the domain is marked only as Make Offer.

Place a BIN at only one other marketplace besides where you have the domain registered to avoid conflicting sales.

It’s absurd to set BIN’s that have no bearing to market value, if that’s what you’re doing.

Yes. I think I have become more rational now. Price from XX$to xxxxx$ range, rather other all xxxxx$ without analysis and evaluation.

nsquare · Oct 21, 2017

i think deals happen when both buyer and seller are motivated enough. High bin on low value names is going to take away buyer motivation. Many people cant negotiate well, so they wouldnt step forward, unless they reasonable price.

At the same time, setting low bin hits your gains. So use or judgement and need instead of greed.

Rothex · Oct 22, 2017

I would add that you also should be consistent in setting your BIN price for each domain across platforms as well. You never know which marketplace a buyer will navigate to or start with and if they just happen to land on the site you forgot to update your "dilusional" BIN on you could miss an opportunity.

ilucky21c · Oct 22, 2017

Rothex said:
I would add that you also should be consistent in setting your BIN price for each domain across platforms as well. You never know which marketplace a buyer will navigate to or start with and if they just happen to land on the site you forgot to update your "dilusional" BIN on you could miss an opportunity.

Yes. I have to say that did take a lot of effort! All changed! I believe the chance of sales is greatly enhanced ！

Hootsifer · Oct 22, 2017

Yes - the first thing a person does when they see a high price is react and say "are you kidding me"? Rip off. Then try to seek out and find a cheap, almost identical alternative. Think of when you see an overpriced car on the lot. Or overpriced clothig / jewelry / food in a store. Same mechanics. Price a BIN accordingly so someone can buy it now quickly if it's in great demand from others prying hands. It shouldn't be a reason to jack up prices 10x more than actual worth. An end user will see a high BIN and simply go to godaddy and try to find a comparable name for $11 or even a domain hack if they have to. Only rare cases like an extremely rare domain or something in HUGE demand might let a slightly higher BIN slip by.

domeen · Oct 22, 2017

Shuttlepro said:
Yes - the first thing a person does when they see a high price is react and say "are you kidding me"? Rip off. Then try to seek out and find a cheap, almost identical alternative. Think of when you see an overpriced car on the lot. Or overpriced clothig / jewelry / food in a store. Same mechanics. Price a BIN accordingly so someone can buy it now quickly if it's in great demand from others prying hands. It shouldn't be a reason to jack up prices 10x more than actual worth. An end user will see a high BIN and simply go to godaddy and try to find a comparable name for $11 or even a domain hack if they have to. Only rare cases like an extremely rare domain or something in HUGE demand might let a slightly higher BIN slip by.

well the question is, do you want a cheapskate as your domain buyer? I mean if he wants a domain for $10, then there is no difference if the domain is priced $1000 or $10000.
I would shoot for not cheapskate buyers.

Hootsifer · Oct 22, 2017

Shoot high but reasonable with offers / counter offers but keep BIN in line imo.

Daniel Owens · Oct 22, 2017

If, the point of your bin is to make it so high that you can buy a beach house in Florida or pay off your xx,xxx or even xxx,xxx mortgage than you are probably living in a dream world. Even, a high quality end-user might be scared away by a $50,000+ bin on a domain name. My, advice price your domains at a reasonable price so that people will make offers. If, it's a three letter .com you may have every right for a high bin. But, if it a two or three word .com, or low-end brandable and your expecting xx,xxx you might just be crazy.

xynames · Oct 22, 2017

I’ve sold two word domains for low to mid five figures. Unless you have lots of real word domains you can’t know about selling them.

Daniel Owens · Oct 22, 2017

@xynames That is not the norm though I've seen single world domains go for less than one-hundred dollars before usually it's something ending in able or ing, or starts with the letters non. So, my reference is that many list domains thinking they are greater than they are. However, not all two-word domains are created equal. I suggest a domainer seek other domainers advice before listing a domain for $50,000+ and that they seriously take into account what other people (domainers) say about it.

xynames · Oct 22, 2017

Well sure I mean you gotta do your homework and compare past sales and current offerings (comparables).

maxtorz · Oct 23, 2017

No, a HIGH BIN should never scare a buyer away, IF AND ONLY IF you have done your homework/research before you priced that domain.

Willox Perez · Oct 24, 2017

Great tips already, only thing I would add is pricing your names at reasonable prices for buy it now makes sense to get them sold quicker. If you are looking for much more on a specific domain just simply put the domain as make offer this way you can counter them to your price.

When I get a name I usually aim to make back 50 times the amount paid for the domain, 30 times the amount paid and finally worst case 10 times the amount paid. I feel these numbers are great returns on your investment and you can get yourself into the habit of selling your domains instead of holding for a higher price.

Too many times i missed on a potential sale thinking I could get higher on the name. Some names you know you should hold off but when it comes to making consistent profit selling now is better than selling later.

- Will

Smiles76 · Oct 24, 2017

Brandworthy said:
Personally I think the biggest mistake in domaining is setting a BIN and then allowing buyers to make an offer.

Imagine if this was real estate, and you set the price of your house at $500,000 with some sort of mechanism to checkout. Right next to that you put a form allowing buyers to make an offer, usually with a minimum value which is a fraction of the BIN. What would you think as a buyer? Would you think that the BIN is a real price? Immediately you think you must haggle, and that you're being conned just like tourists are when buying trinkets whilst on holiday.

I honestly don't understand why domainers, domain marketplaces and various sales platforms use this technique so much. Try setting a real BIN and not taking offers. If the price reflects the intrinsic value of the name then maybe you will sell without any negotiation. Set BIN or ask for offer, but not both IMO.

The first rule of business is that the market not seller determines what something is worth. This is why successful companies test to see what people are willing to pay before launching a product to the masses.

Smiles76 · Oct 24, 2017

Shuttlepro said:
Yes - the first thing a person does when they see a high price is react and say "are you kidding me"? Rip off. Then try to seek out and find a cheap, almost identical alternative. Think of when you see an overpriced car on the lot. Or overpriced clothig / jewelry / food in a store. Same mechanics. Price a BIN accordingly so someone can buy it now quickly if it's in great demand from others prying hands. It shouldn't be a reason to jack up prices 10x more than actual worth. An end user will see a high BIN and simply go to godaddy and try to find a comparable name for $11 or even a domain hack if they have to. Only rare cases like an extremely rare domain or something in HUGE demand might let a slightly higher BIN slip by.

This is an excellent point. Most domainers never look at comparables in their field. If you're asking $50,000 for clothingshop.com and the owner of clothingstore.com is only asking $1000, 99% of buyers will choose the latter. I've seen some shocking disparities in pricing for very comparable domains.

Brandworthy · Oct 24, 2017

Smiles76 said:
This is why successful companies test to see what people are willing to pay before launching a product to the masses.

Not sure how the example of mass market products can be applied to domains, which are perfectly heterogeneous?

Can high BIN scare buyers away？

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