- Impact
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Some of you might know that in the past I did a lot of posts on discounts, and pricing to clear.
This is sort of an update post, as to what I am doing in 2023. Been testing lately, side note I always test things.
Note: This might not apply to everyone so do your own best judgement. I'm just sharing what I understood and I am using now.
Okay, now to the point.
In the past I used to sell a lot of domains at $199, $299 and whatever prices. Also at $75 in some cases. This was pre-2022. And quite a lot of other folks here have followed suit with good results in general. But in 2022, all this has stopped. Something did change in the market.
So what I do now? (except from a few tests here and there, and NP sales):
Never discount much under $1K, if at all.
And let me explain why.
There are 3 obvious types of buyers of domain names if you ask me:
1) Retail buyers (that will pay top dollar)
2) Lowballers (in lack of a better name; anyway buyers that will only ditch a couple hundred out, for any reasons including they don't have more; usually NOT investors )
3) Other investors.
The difference in my perception is that investors no longer pay $199 or $299 on a domain since 2022 started. Or at least most of them. And if you do the math in the current market, you'll know why. They'd be making losses.
So what do you do now by discounting that much? You actuall give the option to lowballers to get your domain for cheap before the right buyer comes, and you might definitely miss on that top retail sale.
I currently use 2 prices, $999 and $750 currently and still doing some alternate testing (haven't decided yet which brings more).
Please also note that if you by chance get 5 sales at $199, that's just $1k. You might feel you sold a lot, but no, that'd be just one discounted sale of 1k. It's a perception thing that might fool some of us (it definitely "tries to play me" as well).
You also might get hit with more fees for more payments.
And if you plan to renew them? That's entirely dumb pricing in such case, as overall at 1% or 2% yearly average sales ratio, you are bleeding money fast. Especially in the current market where domain prices went up and sales went down; so yearly ratio might be significantly smaller, you definitely need to price high.
Besides, domain prices haven't went down lately. And no chance they will by a lot. Because it doesn't make sense economically for most investors to reduce prices now.
Now the caveat is, everyone loves a good deal.
So if you had your domain at say $2K, dropping it to $1500 or $1700 might bring you a very happy buyer.
But do not discount it to $250 or $150 or whatever; as that will likely only bring you loss overall. Assuming though that you made your research well and that your prices are accurate.
Happy sales in 2023!
Later edit: Most of my domain are .COMs of 1-2 words and not liquid type, to be more specific. Either meaningful or brandable .COMs.
This is sort of an update post, as to what I am doing in 2023. Been testing lately, side note I always test things.
Note: This might not apply to everyone so do your own best judgement. I'm just sharing what I understood and I am using now.
Okay, now to the point.
In the past I used to sell a lot of domains at $199, $299 and whatever prices. Also at $75 in some cases. This was pre-2022. And quite a lot of other folks here have followed suit with good results in general. But in 2022, all this has stopped. Something did change in the market.
So what I do now? (except from a few tests here and there, and NP sales):
Never discount much under $1K, if at all.
And let me explain why.
There are 3 obvious types of buyers of domain names if you ask me:
1) Retail buyers (that will pay top dollar)
2) Lowballers (in lack of a better name; anyway buyers that will only ditch a couple hundred out, for any reasons including they don't have more; usually NOT investors )
3) Other investors.
The difference in my perception is that investors no longer pay $199 or $299 on a domain since 2022 started. Or at least most of them. And if you do the math in the current market, you'll know why. They'd be making losses.
So what do you do now by discounting that much? You actuall give the option to lowballers to get your domain for cheap before the right buyer comes, and you might definitely miss on that top retail sale.
I currently use 2 prices, $999 and $750 currently and still doing some alternate testing (haven't decided yet which brings more).
Please also note that if you by chance get 5 sales at $199, that's just $1k. You might feel you sold a lot, but no, that'd be just one discounted sale of 1k. It's a perception thing that might fool some of us (it definitely "tries to play me" as well).
You also might get hit with more fees for more payments.
And if you plan to renew them? That's entirely dumb pricing in such case, as overall at 1% or 2% yearly average sales ratio, you are bleeding money fast. Especially in the current market where domain prices went up and sales went down; so yearly ratio might be significantly smaller, you definitely need to price high.
Besides, domain prices haven't went down lately. And no chance they will by a lot. Because it doesn't make sense economically for most investors to reduce prices now.
Now the caveat is, everyone loves a good deal.
So if you had your domain at say $2K, dropping it to $1500 or $1700 might bring you a very happy buyer.
But do not discount it to $250 or $150 or whatever; as that will likely only bring you loss overall. Assuming though that you made your research well and that your prices are accurate.
Happy sales in 2023!
Later edit: Most of my domain are .COMs of 1-2 words and not liquid type, to be more specific. Either meaningful or brandable .COMs.
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