Pricing Names Too Low

passini · Sep 11, 2020

Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

karmaco · Sep 11, 2020

I tend to agree many underprice their names or have names on platforms that underprice their domains. Its a strategy for those not interested in a long hold or any hold trying to increase likelihood of fast turnaround.

I myself,am sure many others too, have benefited from super low pricing. Got various what I consider category killer names under 500. So for people buying, its a good thing.

Jimmysun · Sep 11, 2020

My opinion is,,
Never sell domain cheap, your likely chance of being picked up is 1/100-1000 that’s why your offer pricing 100x1000 times is reasonable, you might get fast turnaround but might not covering the costs.
People will never want cheap priced domain names unless they hand reg, people want your expensive domain they buying cheap.

warend2 · Sep 11, 2020

Indeed, you must learn the value of your domain specially if your domain has number of word wide known keywords like. Care, Insurance etc.

My domain is worth 2000USD combining 2 popular keywords stated above.

HeartCareInsurance .com - I am very optimistic that this domain will sell.

Keep Hunting!

WhoaDomain.com · Sep 11, 2020

Agreed.

HugeDomains is the worst offender.

I have domains that clearly can be sold for $10k or $20k with similar keywords of which I have the plural.

But theirs are always priced at $2595 or $1500

What I have learned in this industry from experts is that there are different domainers. Those looking to make millions with one domain or those who will make millions selling domains fast ergo cheaply.

1 domain for $1 million wait for forever or never.

Even if we talk about 100 domains priced the same above. Can be same results.

But 1000 domains priced at $1000 each. Gets you to $1 million faster and more realistically given the current state of the world.

biggie · Sep 11, 2020

Hi

i think

if, you think, some are pricing names too low and they are quality domain names...
then
perhaps somebody should be buying them, and then increase their prices accordingly, right?

just saying....

imo...

NickB · Sep 11, 2020

This is the crux of the matter........

Still learning? To high? To low?...Wtf is the sweet spot.......

Me? Still working it out......

Edit:

3 drinks in

garptrader · Sep 12, 2020

In theory more aggressive pricing should increase turnover but super cheap pricing can work against you because a buyer willing to pay $5k for the desired domain will buy it for $250 if that is the BIN price.

bmugford · Sep 12, 2020

garptrader said:
In theory more aggressive pricing should increase turnover but super cheap pricing can work against you because a buyer willing to pay $5k for the desired domain will buy it for $250 if that is the BIN price.

I agree with this, as far as end users go.

I have done A-B testing in the past multiple times, and lower pricing has never resulted in more total sales revenue.

If you take a domain priced at $2,500 and price it at $500 it is not 5x more likely to sell from my experience.

As long as your domains are priced in a normal end user range, say under $5K I really don't think the STR is going to be that much different when it comes to end users. At least, not enough of a difference that you would need in sales volume to make up the gap.

You often just end up selling the best domains for lower prices, where you would have been better off leaving them all at normal end user pricing.

Brad

zomainhacks · Sep 12, 2020

It migh have sense if you want to scale the business and you need the cashflow needed to acquire other domains.
I'm starting with a low budget (low X.XXX) and in order to see some sales in the short term and increase my budget, I need to underprice some domains.
If you have 1000 good domains in your portfolio, underpricing is not a rational strategy. With 50-60 domains and a small budget is another story.

bmugford · Sep 12, 2020

zomainhacks said:
It migh have sense if you want to scale the business and you need the cashflow needed to acquire other domains.
I'm starting with a low budget (low X.XXX) and in order to see some sales in the shor term and increase my budget, I need to underprice some domains.
If you have 1000 good domains in your portfolio, underpricing is not a rational strategy. With 50-60 domains and a small budget is another story.

Yes, cash flow is always a consideration.

That is one reason many top domain investors would get much more for the exact same domain than others. If cash flow is not much of an issue, then making a sale is not that pressing.

My perspective is based on passive end user sales. I don't outbound domains. I rarely sell to other domain investors, unless they are willing to pay end user prices.

Some people might have a different business model that yields a higher STR on lower end domains. If you are hand regging domains for $8, you don't need a $2,500 average sale price to turn a nice profit at a normal 1-2% STR.

Brad

zaimk · Sep 12, 2020

Thanks for all insight

Recons.Com · Sep 12, 2020

passini said:
Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

SAV does $280 flat. It claims it is a third party investor, but I don't think anyone believes that. Of course, the investor does it only on their landers and uses privacy. Another fun fact: 100% of names I come across with SAV landers are at that price. So it seems their only client for landers is the mystery guy that has tens of thousands of names.

There are two ways to look at it: a) they compete with domain investors and undermine their business while asking for that business; b) well, whatever their intention, but if they scrape the barrel and take all available decent hand regs, besides hurting by damping, they also help a little because they remove the weak substitutes for the names.

Whatever whoever does, I focus on my business, inventory and pricing disregarding what I cannot control.

I agree with Brad that lowering prices to xxx doesn't increase your overall revenue, so why do it?

Kuffy · Sep 12, 2020

I think I have sold all my names at too low a price.

When I offer them at a "realistic" price, then I never hear again from the prospect.

Some years ago I sold a name to a Swiss bank, and of course I didn't know the identity of the buyer until he was hosting the name. I sold it for £250 ( it was a good few years ago ), and it was an exact match for the comany's forex business brand. The name was an LLLLLNN.com, and I had posted it here for a valuation. The best estimate was $25. I often wonder how much they would have paid if I had pushed for several thousand. btw, it was a hand reg from about a year before the sale.

tonyk2000 · Sep 12, 2020

Pricing model? It is secondary. Think about it. Somebody may have lower number of sales @ higher prices. It works for him. Another domainer may have higher number of sales @ lower prices (similar portfolio). It works for him. Who gains more? The answer is not obvious. Also, there is one more criteria. Not only a domainer should be profitable, but he should re-invest at least 50% back.... to grow and develop. If the domainer has profit, and has willingness (and opportunities) to re-invest a part of it - only in this case the question "what pricing model is better" makes sense. The last but not the least, the question of pricing should not be taken lightly due to annual renewals. Low number of sales (due to any reason, maybe quality, maybe pricing....) would mean higher spending on renewals. Shortly: to each his own. No definitive recommendation or preference can exist.

Unfortunately, many new domainers, and some older ones (not to point fingers), just overpay on expiring auctions, so the pricing model question is not the question they have to answer. Astronomic prices and llittle or no sales - this is what happens nowadays, and frequently.

equity78 · Sep 12, 2020

biggie said:
Hi

i think

if, you think, some are pricing names too low and they are quality domain names...
then
perhaps somebody should be buying them, and then increase their prices accordingly, right?

just saying....

imo...

Yeah that part never seems to happen Don.

equity78 · Sep 12, 2020

bmugford said:
Yes, cash flow is always a consideration.

That is one reason many top domain investors would get much more for the exact same domain than others. If cash flow is not much of an issue, then making a sale is not that pressing.

My perspective is based on passive end user sales. I don't outbound domains. I rarely sell to other domain investors, unless they are willing to pay end user prices.

Some people might have a different business model that yields a higher STR on lower end domains. If you are hand regging domains for $8, you don't need a $2,500 average sale price to turn a nice profit at a normal 1-2% STR.

Brad

Well exactly Brad there are lots of business models in this worldwide business. And with it being a worldwide business the standards of living are different too. I was surprised to read a couple weeks ago in another thread there are people making money and running their business selling domain names for $99.

Others purposely sell lower to try to bring overall pricing, there have been a few who have sold brandables for $199 to $299 in hopes of hurting BrandBucket and sellers there.

I have known domainers who have marketed to companies, I am the good guy, I know the domain business most are price gougers come buy from me you will never pay more than X. Look we never see anyone's books who knows what's working for some?

lock · Sep 12, 2020

People buy names in niches and sometimes outside them as time comes for renewals they won't always see names outside their niche as premium as rest or portfolio often discounting them.

DOMAIN ILLUMINATI · Sep 12, 2020

Those who don't know the value of their domain name(s) are pricing it (them) too low (or too high).

karmaco · Sep 12, 2020

equity78 said:
Well exactly Brad there are lots of business models in this worldwide business. And with it being a worldwide business the standards of living are different too. I was surprised to read a couple weeks ago in another thread there are people making money and running their business selling domain names for $99.

Others purposely sell lower to try to bring overall pricing, there have been a few who have sold brandables for $199 to $299 in hopes of hurting BrandBucket and sellers there.

I have known domainers who have marketed to companies, I am the good guy, I know the domain business most are price gougers come buy from me you will never pay more than X. Look we never see anyone's books who knows what's working for some?

Another thing that purposefully brings brandable buyers price expectations down is the naming contests run by SH and BB.

lock · Sep 12, 2020

DOMAIN ILLUMINATI said:
Those who don't know the value of their domain name(s) are pricing it (them) too low (or too high).

Then we see your sig and wonder if highest price has a market.

Samer · Sep 12, 2020

lock said:
Then we see your sig and wonder if highest price has a market.

Sigs dont show up mobile

Truespin Domains · Sep 12, 2020

Depends on your approach. I personally go for fast turnover.

So if I buy a domain for 800 on Monday, and sell it for 1500 on Friday, happy days.

Could I have got more for it I'd hung on for years? Probably, but that was never my intention.

twiki · Sep 12, 2020

Got me thinking.

I currently only sell 4-fig coms, apart from what i have at clearance which goes like $199 or so.

Anyway. I dont' do 3-word .coms (anymore), but I know I can get some decent ones. However I'd not price those at 4-fig, but in the 200-500 range, mostly. (except the ones worth more, likely fewer that will still go to 4-fig)

It might be a good strategy to create a tier I don't currently run. Side note I do have the ability (and manpower) to manage that too, and budget.

However If I'd price it over 1K I doubt the 3-word would really be profitable in the current market.

Edit: On the other hand, I'm torn as this market doesn't need more lowball sales as it drags everything down. So again, got me thinking.

blogspotter · Sep 12, 2020

Recons.Com said:
SAV does $280 flat. It claims it is a third party investor, but I don't think anyone believes that. Of course, the investor does it only on their landers and uses privacy. Another fun fact: 100% of names I come across with SAV landers are at that price. So it seems their only client for landers is the mystery guy that has tens of thousands of names.

There are two ways to look at it: a) they compete with domain investors and undermine their business while asking for that business; b) well, whatever their intention, but if they scrape the barrel and take all available decent hand regs, besides hurting by damping, they also help a little because they remove the weak substitutes for the names.

Whatever whoever does, I focus on my business, inventory and pricing disregarding what I cannot control.

I agree with Brad that lowering prices to xxx doesn't increase your overall revenue, so why do it?

To be honest I have been tracking SAV for a few weeks. I also thoguht it was some investor but some people here at NP tells me it is SAV. They are just buying random 5 letter names that are a combination of CVCVC,VCVCV, VCCVC etc

I can tell right at drop what they will pick up for the day. But they are pretty shitty.,

Look at this
liwuq
cipoz
rokuv
baiws
xeemy
dooju

and from yesterday
tejol.com
bujeh.com
orowl.com
zunib.com
and so on...
These are much worse than the SH/BB accepted 5Ls that people are trying to dump here for 10-20 without any takers.

Looks like they are registering with a bot it without human intervention lol

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