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I am not talking about the ultra premium single words and category killers that are always liquid and you can always.
I am talking about your portfolio minus the liquid assets.
I maybe wrong. I just want to understand the process better.
Most the assumptions around sell-through rate is that if your sell through rate is 2%, and you sell a domain for 10x the purchase price, you won't make a profit.
Meaning you have 100 domains bought $1 @ an acquisition cost of 100
If you sell 2 domains at 10x, you only sold $20
But here is what I think is wrong with that mindset.
You have 100 domain and you accept a 2% sell through because you don't which 2% will sell.
Meaning even if you sold 1 domain in week 0, that doesn't mean you only have 1 domains left out of 99 that will sell.
In order words, every domain out of the 100 have an equal chance of getting sold. If you know better, then, you are carrying dead weight.
It is good to use the sell through % to price your domains, but I think it is not a very good idea to hold off a domain from an offer simply because it is below your calculated pricing based on sell through. This of course exclude your well researched domains which are semi premium, with a targeted buyer who might raise another round of funding etc.
I am talking about that domains which is think is as good as any of your 100 domains in the portfolio.
Every domain has one buyer. Even if there are more, they aren't going on a Bidding war, and if they do it is a different matter.
So I think turning down an offer of 2000 when you priced it at 3000 simply because it is not 60X of your buying price seem counter productive.
I am not saying I am right. This is just something I have been thinking a while when I see a lot people say I rejected a low offer.
Because, you have 99 other domains to sell
What are your thoughts?
Should you hold back for higher profit?
Or should you try to close as deal as ling as an offer is decent?
If it is for a sheep domain. One of a thousand, not your baby.
I am talking about your portfolio minus the liquid assets.
I maybe wrong. I just want to understand the process better.
Most the assumptions around sell-through rate is that if your sell through rate is 2%, and you sell a domain for 10x the purchase price, you won't make a profit.
Meaning you have 100 domains bought $1 @ an acquisition cost of 100
If you sell 2 domains at 10x, you only sold $20
But here is what I think is wrong with that mindset.
You have 100 domain and you accept a 2% sell through because you don't which 2% will sell.
Meaning even if you sold 1 domain in week 0, that doesn't mean you only have 1 domains left out of 99 that will sell.
In order words, every domain out of the 100 have an equal chance of getting sold. If you know better, then, you are carrying dead weight.
It is good to use the sell through % to price your domains, but I think it is not a very good idea to hold off a domain from an offer simply because it is below your calculated pricing based on sell through. This of course exclude your well researched domains which are semi premium, with a targeted buyer who might raise another round of funding etc.
I am talking about that domains which is think is as good as any of your 100 domains in the portfolio.
Every domain has one buyer. Even if there are more, they aren't going on a Bidding war, and if they do it is a different matter.
So I think turning down an offer of 2000 when you priced it at 3000 simply because it is not 60X of your buying price seem counter productive.
I am not saying I am right. This is just something I have been thinking a while when I see a lot people say I rejected a low offer.
Because, you have 99 other domains to sell
What are your thoughts?
Should you hold back for higher profit?
Or should you try to close as deal as ling as an offer is decent?
If it is for a sheep domain. One of a thousand, not your baby.
