advice Advice on Auction Starting Price and Reserve Price

[DNVantage]

Couple of days ago, I listed my first auction at Flippa. After I listed my domain, I found the thread "Flippa: enjoy my $9", which made me rethink about starting price and reserve price.

What is your experience with Starting Price and Reserve Price. What is your suggestion? What works best for domain auctions at domain marketplaces and specially at Flippa?

1) Will setting a reserve price reduce buyers interest in the domain? Will setting a reserve price bring in more serious buyers early in the auction? What do you suggest? To have a reserve price or not? Apart from preventing a domain for auctioning off at very low price, is there any other benefit of having a reserve price?

2) What is the suggested starting price for a domain on auction at any market place, specially at Flippa? Will $1 start get more bids and more exposure or it is better to set starting bid at a higher price? If you are suggesting at a higher price, what is the recommended starting bid price? Should it be at reserve price or below reserve price, say 25% or 50% of reserve price?

3) Any other advice? ( apart for paying for upgrades )

 

[doubleU]

I suggest having a safe reserve (no less than 25% of BIN) you can always negotiate with bidders after auction closes if reserve is not met.

 

[Omar Negron]

People like the idea of participating in an auction that doesn't have a reserve, because they feel they have a chance to get a "deal".

As a seller, it sure is risky. If that's the case and you do not put in a reserve, you better make sure you promote that auction anyway you can. This is especially true if the domain is of high value (to you and to others of course).

-Omar

 

[biggie]

3) Any other advice? ( apart for paying for upgrades )

did you try to market your domain to others, before paying to list?

and....

the quality of the domain should dictate whether to "set a reserve or not"

and....

ALL FEE's should be taken into consideration, prior to setting a reserve.

cuz....

you don't want the platform making more than you, on the sale of your domain.


imo...

 

[Edward Smeu]

Couple of days ago, I listed my first auction at Flippa. After I listed my domain, I found the thread "Flippa: enjoy my $9", which made me rethink about starting price and reserve price.

What is your experience with Starting Price and Reserve Price. What is your suggestion? What works best for domain auctions at domain marketplaces and specially at Flippa?

1) Will setting a reserve price reduce buyers interest in the domain? Will setting a reserve price bring in more serious buyers early in the auction? What do you suggest? To have a reserve price or not? Apart from preventing a domain for auctioning off at very low price, is there any other benefit of having a reserve price?

2) What is the suggested starting price for a domain on auction at any market place, specially at Flippa? Will $1 start get more bids and more exposure or it is better to set starting bid at a higher price? If you are suggesting at a higher price, what is the recommended starting bid price? Should it be at reserve price or below reserve price, say 25% or 50% of reserve price?

3) Any other advice? ( apart for paying for upgrades )

Hi,

I have some answers for you, here we go:

1) Setting a reserve price will reduce the number of bidders to your auction, not necessarily buyer interest. Setting a reserve price will not bring in more serious buyers early but will help at getting the price higher, quicker but not necessarily passing the reserve. Most common trick seller use is to reduce the reserve to $1 over the current price to get the sale and more possible action. If a domain is good enough to get decent general interest I would recommend a no reserve auction because the buyer will either be an end-user or a domain investor which can pay top re-seller price. But if the auction is for a domain in a specific niche with less general public appeal, I would recommend a reserve price. In this case you must attract more buyers in that niche only to get close to the price you want. So it all depends on the quality of the domain and the work you put in to entertain the action.

2) Over 95% of the sellers I've seen start their auction from $1, reserve or no reserve. Setting a higher starting price will discourage the low-bidders who are important for any auction to make it more popular and appealing. I wouldn't recommend a higher starting price unless it's an ultra-premium and even then, just set up a reserve (or not), start from $1 and you will get a lot of early auction.

3) I said it in other threads too but @FlippaDomains is constantly working with new sellers as he stated in his interviews so you can always ask for his advice.

Keep that in mind and have some nice sales!