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Better Success with BIN or "Make Offer"? $10 award for best feedback.

Located in General Domain Discussion started by Federer, May 5, 2018.

Replies:
63
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3,311

?

I have had more success (better ROI overall) over with

Poll closed May 12, 2018.
  1. BIN

    63.1%
  2. Make Offer

    36.9%
Total: 84 vote(s)
  1. Federer

    Federer Top Member VIP ★★★★★★★★★★

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    Have you had more success slapping BIN prices on your domains, or do you generate a better ROI overall by leaving "make offer"?

    We have heard many times Sedo & Afternic listing the various benefits of BIN-priced names in the sweet-spot ($1K-$5K range). In practice, do you find you do better with fixed prices or "make offer"?

    $10 PayPal payment will go to the most complete answer based on past experiences over time.
     
    Last edited: May 5, 2018
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  2. Rizwan Razzaq

    Rizwan Razzaq Market Restricted

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    i offered nearest offers to sellers one was asking 500 usd for rascals.net i offered 400 and she changed price immediately to 1500 usd lol i dont send offers anymore
     
  3. AuthorityDomains

    AuthorityDomains Established Member

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    I've personally found most end users want to know the price and get annoyed if you don't give them a price, especially UK end users.

    You go into a shop or on amazon, you look at a product and it has a price. Almost everything has a price attached to it, even when you buy a house or a car.

    I'm testing with both atm to see what works best.
     
  4. frank-germany

    frank-germany F1lter.com xpired domain search engine Gold Account VIP

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    it all depends on the name and the kind of customers you want to attrack

    when you have a fast decision kind of price tag
    and know the kind of customers
    it's better to have a BIN

    but only if you can imagine the pockets of that customer
    and he willingness to spend that amount on a domain

    when you have a great name
    you only want to become aware of the kind of buyers who might be interested
    then it's better to have no price

    if you ask sedo BIN is better
    because it means automated income for them
    ( always understand why somebody is recommending something )

    and when you don't ask Mike Mann
    then a large price should not been shown on LP
    but only smaller amounts
    Mike Mann doesn't bother to show huge BINs

    in the end when a buyer wants a domain
    or better needs a domain
    there is no need to display the price

    but when you do outbound
    you need to quote a price sooner or later
    so sooner is better
     
  5. frank-germany

    frank-germany F1lter.com xpired domain search engine Gold Account VIP

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    -deleted purposely posted content-
     
    Last edited: May 5, 2018
  6. Furquah

    Furquah The Captain VIP

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    It all depends on the domain name quality & niche. No one going to buy now price of $1000 for abdhdcbv.com but yes some end user hit blockexplore.com BIN price $1000.

    I have found success on BIN, but you should not over price.
     
  7. BrandableDomain

    BrandableDomain Established Member

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    I have a recollection from a few years ago of Sedo stating that buy it now (BIN) sales velocity occurs at a multiple of make offer models. From memory, it might have been 3 to 5 times sales velocity.

    I agree with that, so all my domains for sale have BINs and it works very well.

    I do however think that you can achieve slightly higher sales prices on average if you do use offer or outbound methods. But since I only sell a tiny per cent of inventory per year, sales velocity is far far more important. It’s about the total return.

    So I believe you will make far fewer sales if you don’t use BIN pricing (there are some exceptions to this principle as follows). I’ve never done any outbound in my life, so if you’re prepared to do that, that may be a good way to maximise your return.

    Anyhow, I believe the question has been definitively answered by Paul Nicks who generously revealed much about the NameFind (Godaddy) portfolio at NamesCon.

    I would be surprised if any domain company in the world uses big data analytics more than Godaddy. And the NameFind portfolio is undoubtedly one of the best portfolios there is. It’s an aggregation of nine portfolios with 734,000 domains.

    So following is a quote from a 43 minute NamesCon 2018 YouTube video:

    “We put the vast majority, 99 plus per cent of all our inventory is set to buy it now… …and the rest is make offer.“

    “The reason we do Buy Now is very important. Buy Now [has] up to 5 X higher sell through than just a straight make offer.”

    (From around 10:20.)

    Not allowed to post the link but it’s called:

    NamesCon 2018 - NameFind, GoDaddy's Domain Name Portfolio

    So the best strategy seems to be to have most of your domains with BIN pricing with the exception of any you believe are very high value, worth some mid five figure value at least. Possibly very high traffic names with frequent enquiries might also be better using make offer, and there may be other exceptions to this principle.

    NameFind believes the evidence is there so 99 per cent of inventory is priced. It’s what customers want and it’s simply effective. In most cases, if you want up to 5 times more sales, give your customers what they want which is prices.

    The video is a masterclass, kudos to Paul Nicks and NamesCon for making this resource available.

    (If I happen to win the $10 please donate it to some worthy cause.)
     
  8. 1Darko

    1Darko Active Member VIP

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    @Federer It's interesting to see the poll results of this thread and I'm quite "shocked" that you opened this thread and asking such a question since you're probably one of the most successful and capable persons to answer this question first hand.
    It looks like BIN is overall the way to go. :xf.smile:
     
  9. ramkumaritrvs

    ramkumaritrvs RapidNames.com PRO VIP

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    Make offer worked well for me...

    There is two scenario in order to set price.

    If you need to liquidate portfolio set BIN, other(wise) Make offer helped to sell at high price.

    BIN will lead more sale but Make offer lead Higher price because buyer knew the domain importance more than us, so they may ready to offer more than we think.

    I never thought 2 word .co will sell @ $15k+ but one of my buyer paid that (By make offer & negotiation).

    Also we will get a chance to research about buyer if they make offer, so we can price accordingly.

    JMO from my past sales. (y)
     
  10. Marshall

    Marshall Hot Member VIP

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    Based on my experience,

    If you need cash quick or to make sales regularly for maintaining the cash flow -
    Go with BIN

    If you got some solid domains or
    cash flow is not an issue for you and you can sit on them for long -
    Go with Make Offer

    P.S.
    I prefer BIN because as I've seen end users most likely want to buy a domain quick and get done with it. They don't have the time to get into heavy negotiations. Sometimes negotiations get time consuming and most probably will annoy the buyer.
     
    Last edited: May 6, 2018
  11. dexdn

    dexdn Top Member VIP

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    2 weeks - Make Offer
    2 weeks - BIN

    Whole rotation, in every moment half of my domains are BIN and another half - make offer, every 2 weeks rotation, yes it takes some time to change all those prices but this method works fine for me :)
     
  12. frank-germany

    frank-germany F1lter.com xpired domain search engine Gold Account VIP

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    That sounds interesting

    Could you eleborate
    How long are You doing so?
    What are the results?

    My system would allow me to
    Automate that

    Is it worth the hassle?
     
  13. Nikhil Jain

    Nikhil Jain Active Member VIP

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    Would appreciate if @Federer could enlighten us with his own experience. Your sales have been an inspiration and would help us all learn a lot more.
     
  14. Adam27

    Adam27 Blockchain.link for Sale or Lease VIP

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    By far I've had the most success with BINs. People want to know the price upfront.

    That being said I've started experimenting with Make Offer landers. On marketplaces there are BIN prices. This is the best way to extract maximal value from your domains. I made $800+ more on a domain than the listed BIN price the other day.

    This method does make inquiries go down though. It will make you get good at negotiation and understanding buyers and sales real.

    Remember a domain is worth what someone is willing to pay. You never know in this industry. :)
     
  15. dexdn

    dexdn Top Member VIP

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    For example 2 different marketplaces - Sedo and Afternic
    1/2 on Sedo - BIN another 1/2 on Afternic - Make Offer
    After 2 weeks - rotation

    I am doing this almost 2 years and so far is ok.

    Why am I doing this? I do not send outbound emails, buyers if they are interested in any of my domains, come to me first, sending emails with offers is a little bit like you beg someone to buy your domain and many customers have the wrong idea, they think - you are desperate to sell and then that impact the price, you will never get a right price for your domain.
    Maybe I am wrong, maybe is better to send those emails but that is not my way :)
     
  16. DonDraper

    DonDraper Active Member VIP

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    I switched the whole portfolio and I did a x3 in terms of 'engagement' of course there are also a bunch of useless lowball...but the when it comes to 'Make Offer' the UX of Landing Page can really make the difference. At least its what It's happening to me.

    My 2cents
     
  17. DOMAIN ILLUMINATI

    DOMAIN ILLUMINATI Owner of ▲ the most expensive domain of all time. Gold Account

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    It doesn't matter as long as you have the "right" domain/s, you will have success with it in both offering / selling - methods.
     
    Last edited: May 6, 2018
  18. Haykay2005

    Haykay2005 Active Member VIP

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    I agreed BIN is fine but if a buyer truly needs your domain, he won't turn back because of no price tag. So both work fine
     
  19. domeen

    domeen Active Member VIP

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    With BIN there is also this called “drunk dial” effect. Some guy has too much beer one night and buys your domain. Next day if he wakes up he might not want it anymore. But transfer has already happened.
     
  20. Galaxy Traveller

    Galaxy Traveller Established Member

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    I use both options. But my experience is instead of negotiations end users just hit buy now.
     
  21. Federer

    Federer Top Member VIP ★★★★★★★★★★

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    For the past 12 months, I did an experiment and added a BIN price to 4500 domains.
    Over the year, 27 domains sold, an average of 0.6%. The average sales price was around $1450.
    Ratio was: initial investment (cost of domains) x 4.36 = profit (after taking off commissions and registration costs) - which was excellent, despite the low sales %.

    Over 3 months, I did the same experiment with another set of 1050 domains (BIN priced them all).
    3 domains sold over the 3 month period, an average of around 1.35%. The average sales price was around €1350.
    Ratio: initial investment (cost of domains) x 3.92 = profit (after taking off commissions and registration costs).

    Starting April 2018, I switched strategies and adding "make offer" with a min £200/$200/€200 to all pages.
    Results after one (group of 9500 domains that cost just £9500, promo price):
    11 sales in April ( = yearly average: 1.4%). Average sale around $921.
    Formula: initial investment (cost of domains) x 7 = profit

    Also applied the "make offer" strategy to another group of 3135 domains (€9400 cost). Results:
    4 sales in April ( = yearly average: 1.53%). Average sale around €1175.
    Formula: initial investment (cost of domains) x 4.08 = profit

    Results, offers can vary depending on season, quality of domains etc. However it seems that "make offer" can actually result in selling slightly more names/year. I believe that more buyers can be turned away by higher-than-budget BINs, than buyers that would be turned away (see a listing and not make an offer at all) be seeing "make offer" rather than a BIN price.
    With a reasonable min offer, you can attract offers from buyers that do not have the typical sweet spot budget ($x,xxx to mid $x,xxx); several mid to high $xxx sales add up fast.
    "Make offer" also gives you the opportunity to extract max. value for a majority of sales, as upon receiving interest/an offer, you can research the buyer, the popularity/potential brand value of the domain you are selling (checking out tech/hot terms; a domain could overnight gain more in-demand/value-enhancing characteristics).

    BIN-pricing the entire portfolio is great for mass-selling in the sweet-spot with ease. That is why NameFind, HugeDomains.com are set up that way; it streamlines the process with as little friction as possible; no negotiations, almost everything is automated - and so it should be when we are talking millions of domains under MGMT.

    However, with regards to portfolios comprising of 5000-100,000 domains, I think the ideal strategy, in most cases would be to combine both models, but placing emphases on the "make offer" set up. This would be done by BIN pricing around 25-30% of the portfolio (obviously not including any ultra-premiums in that mix) and leaving the majority with "make offer". This could ensure that you would extract max. value from the majority of the portfolio, whilst leaving a portion on auto-sell.

    This feedback is simply based on my past experience (past 3-12 months) and the models, to a great extent, have produced successful results across the board.
     
  22. Jurgen Wolf

    Jurgen Wolf Top Member VIP ★★★★★★★★★★

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    Make Offer certainly.
    Because negotiation phase is very important to get the highest results in terms of profit.

    BIN is suitable for 3F sales only... max. low $X,XXX.
     
  23. DonDraper

    DonDraper Active Member VIP

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    And Last but not least with 'Make Offer' you have an higher rate of buyer 'commitment' and when the buyer is committed you never know...
     
  24. domeen

    domeen Active Member VIP

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    I still belive in BIN model. If you have price in mind and are not ready to go lower, you will make more sales! But if you need to make a sale, then make offer you will probably take lower offer more often! I mean if you have BIN price $1000, and do not sell lower. But if someone makes you $200 offer on make offer you could take it. And thats a sale more if you would have bin set. But will you also be making more money in long run is the question here
     
  25. Nezam Uddin

    Nezam Uddin Established Member

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    Typically, its said that "place BIN at one place and make offer at the other places" . Most certainly, you did that. Which platform do you choose for BINning? Afternic ? Undeveloped? Let us know
     

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