How to price brandable domains

[svede]

I am looking to get the community's opinion on how they price brandable domains. When I say brandable domains, I am referring to:
- non-dictionary .coms (or it must be a very odd/archaic dictionary to break this rule)
- LLLL.com
- 5-7 Letter pronounceable .coms
- dictionary word .com that has been modified (i.e., -ly ending)
- 2 dictionary words that fit together or sound good together (RedBox.com, FitBit.com)

Obviously, we all hope that an enduser sees our domain and tracks us down, but that tends to be less likely in brandables IMHO. So how do you decide how much to price for your BINs - whether listed on Sedo/Afternic or your own brandable domain site (assuming you make the choice - unlike BrandBucket.com). Do you list really low and hope it invites buyers? Do you list high hoping to find companies willing to pay it? How would you find something in the "middle"?? I have been comparing all sorts of brandable domain sites (BrandBucket.com, Brandroot.com, Namerific.com, and all sorts of smaller ones) and don't see much of a strong pattern. Any thoughts? I wan't to maximize profits (obviously) while realizing that higher quantity sold can sometimes be higher profits.

EDIT:
Also, for anyone who has their own brandable domain website, do you invite offers/negotiation despite having a BIN? If so, do interested parties usually ask on their own? Or do you "advertise" that in some way (without impacting those who might be willing to pay BIN??

Any and all constructive comments welcome!!

Thanks,
Stephen

 

[svede]

Thanks dncafe and I think you are right.

Margot from BrandBucket says some of the same things in her interview.. that we are providing a service that saves time and is part of the value. That is a good point to be reminded of here. That is also part of the reason that the reseller price is often SOO much lower (except with super premiums). And I do agree it is largely a reflection on the marketplace over simply the value, but then what is value? Isn't it what sells in those marketplaces or wherever you try to sell it? I am also building up a brandable website which is why I am asking. I am trying to get into the head of others who do this and make sure that my pricing compares... I don't want mine so low I lose lots of margin or so high that I don't get buyers.

Thanks!

 

[muttus]

The point is, by creating your own marketplace you are cutting of the middle man, hence even if your prices are lower you will make good money. On the other side I am not sure how will your marketplace reach large enough pool of potential buyers. But if you take it as a developing project in some time you might be on the same level.

One question, prices you have on your marketplace, are they how you valuate them or are these just random numbers for now?

 

[svede]

They are just random numbers right now. I am trying to better evaluate them - I know a generic valuation of them, but where to BIN price them is where I am struggling.

 

[muttus]

Ok, I was bit surprised about some names but that explains it.

I do like: Cublox, Droxo, Vapara, Tissued, Pixlea, Flavoric (out of short brandables)

I realized that I have quite different style in searching my brandables.

Here are some I was considering today but did not pick in the end (I already filled my 3 per day quota . Please could you comment on them and if you want you can pick them up from registry.

elitejuicer.com
zolys.com
spyrox.com
motomy.com

 

[svede]

Yeah, I was just having fun with the numbers, lol. I wish.

I think that is one of the best things about brandables... they can vary from person to person, country to country, culture to culture, language to language, etc... leaves more room to have a "niche"..

EliteJuicer.com - not a bad product domain, but I am in general staying away from non-generic, non-tech domains - with a few exceptions (like I got Scarfz.com via GD closeouts today). But that's just me - its not a bad domain
Zolys.com - technically a 5 letters pronounceable, but I pass over this quality all the time... not a fan from an "English" perspective - but some similar do sell so its not to say its bad... I just have to limit my buys.
Spyrox.com - I sorta like this... play on "spy" and "rox" while also being a pronounceable that does not depend on the meaning from those words to be "cool"... decided to get it with a GD coupon (hard to lose out with that).... not amazing and I don't think I would have paid $10 for it, but it might still sell. There is actually an amazon storefront selling smart phone/tablet cases etc under that name.. but no TM/website... I always like to find domains that were formerly a startup because if I like it, that is at least 2 people that liked it...
Motomy.com - 3 syllable "pronounceable" that feels awkward to me... not feeling it, but who knows?

Thanks!

 

[muttus]

That is my main problem, I do speak 5 languages so many names do appeal to me, but then I have to sit back and check the pronunciation in English (using text to speech generators) to sort it out. Since most of potential customers will be from English speaking countries.

I am also using gut as main indicator, trying to apply 2 level screening. I go through expired domains about 5-6 hours before drop and pick up about 10-20 and then when available I evaluate them again. Unless I feel good both times I do not register them. The Motomy I was considering for MotoMy, but did not sound good enough. Spyrox felt good but then I got something better.

One other thought which crossed my mind today. When looking for non word brandables I started to wonder whether high/er search volume(hence potential other users) might be damaging the name value. If there is lot of crap on the internet it might be difficult for company list well in google.

 

[svede]

I wouldn't say that's a problem - that's an advantage! Remember, there are a LOT of non-English speaking (or at least not as primary) startups out there.... I think sometimes we (I) think of English so much because I believe many of the brand sites (like BrandBucket.com) seem to target American tech startups, especially those in silicon valley... but that actually limits us.. I have taken classes or spoken to some degree of French/Spanish, but am no where remotely fluent in them - yet this still influence words I grab I think. You should check out the site http://www.wordoid.com ..they play around with this concept too..

Regarding search volume, I think it really depends on the domain.. if it is more of a common phrase/slang/etc, then it can be a good thing... but if it is a 100% invented word that other companies are using, then it can be difficult to TM and/or brand... but I don't see as much problem if the company no longer exists or is a minor player in a tiny market... it really all depends on the specifics of what I find and how I feel about it... very subjective, I know.. lol

Thanks as always!

 

[biggie]

I am looking to get the community's opinion on how they price brandable domains.


Thanks,
Stephen

Hi

I saved the cardboard backing from the last large pizza we ordered

and drew eight triangles on the board and put different prices in each one

so whenever someone inquires on a price for a domain, I throw a dart at the board

and wherever it lands..... that's how much i ask.

 

[svede]

No that is something I did NOT think about!! Thank you, Biggie!! :P

 

[ResoluteDomains]

Just wanted to add for your knowledge that (I think last year) DomainSherpa did an interview of BrandBucket's founder and I think that you should watch it if you're into brandables.....

Was going to post the same. It was a very good interview.

 

[muttus]

Hi

I saved the cardboard backing from the last large pizza we ordered

and drew eight triangles on the board and put different prices in each one

so whenever someone inquires on a price for a domain, I throw a dart at the board

and wherever it lands..... that's how much i ask.

I think it would be great to put it on the next level. Just implement wheel of fortune in to your brandbale marketplace, so on checkout customer will spin it for final price.

 

[dncafe]

Just wanted to add for your knowledge that (I think last year) DomainSherpa did an interview of BrandBucket's founder and I think that you should watch it if you're into brandables.

Was going to post the same. It was a very good interview.

Here is the interview:

 

[Genius327]

I have watched this interview in the past. She seems to be very uptight with her "million dollar questions." That's off putting, but hopefully you can pick up some good things from the video. On a side note, the one with Ali Zandi is a must watch.

 

[alcy]

there is only one way to find out what your brandable name is worth, and that's to look at how much money was transferred to your account for it, after it sells.

 

[svede]

I'm sure they are pretty tight on their core knowledge/secrets because they are getting more and more competition and they probably don't want to just give it away. It was a good video, but left me with a lot more questions, probably for that reason.

 

[svede]

there is only one way to find out what your brandable name is worth, and that's to look at how much money was transferred to your account for it, after it sells.

Yes, but the question wasn't how much it is worth. The question was how to price it; what BIN to set for it.

Thanks!

 

[dncafe]

On a side note, the one with Ali Zandi is a must watch.

That's a good one too, although I feel like he gives Flippa too much credit for his success, when it's really his outbound marketing efforts that sell the domains and not the marketplace.

I wish he talked more about outbound marketing, as that is a good way to find buyers for brandable domains.

 

[svede]

I haven't seen that one yet, I'll have to watch it. I presume this is the one you are referring to?
http://www.domainsherpa.com/ali-zandi-flippa-interview/

 

[alcy]

Yes, but the question wasn't how much it is worth. The question was how to price it; what BIN to set for it.

Thanks!

well... that kinda boils down to same thing. if the only way to find out what its worth is to wait til it sells, then there are no rules for setting buynow prices.

it's a bit like asking how much it'll cost us to buy a condo on mars

 

[svede]

well... that kinda boils down to same thing. if the only way to find out what its worth is to wait til it sells, then there are no rules for setting buynow prices.

it's a bit like asking how much it'll cost us to buy a condo on mars

I disagree 100%.... if I price a bad domain at $100k, it will never sell. If I price all my domains at $5 they might all sell in one day (probably to another domainer)... does that make those the right prices? NO. There will always be the chance of overpricing (resulting in less endusers) or underpricing (leaving $$ on the table), but what it sells at and what the ideal price to set the BIN are two COMPLETELY different things. If I am content selling low because I get a lot more sales and still make strong profits, then that is fine, that is what I should set my BIN at. But I am asking for how people decide to price the BIN. Telling me it is based on what it finally sells at is a joke. I can't know what it will sell at when I decide the BIN. Which is why I am asking how people try to make that decision. What you are suggesting ONLY works for taking offers, NOT for BIN. They are not at all the same thing.

 

[alcy]

maybe they are not same thing... but neither are brandable domains same thing as "domains" in the regular sense of the word to me.

therefore I am merely suggesting that the principles of pricing or otherwise one normally applies to domain selling, may not apply to brandable domain selling.

I don't mean this in a negative way for brandable domains. it's just so different that there are no rules.

seems to me the only way for you to a very rough idea of how to set your price (or the worth of your brandable domain) will be to post the domain name here, wait for 100 opinions/appraisals, add them all up, and divide by 100.

 

[svede]

I absolutely agree that there aren't clear rules... but that doesn't mean certain methods don't work better. I have ideas on what to price my domains at - I feel I at least know the general "value" based on studying past sales. However, I am looking for other people's thoughts - many of whom have shared already. I don't simply want an appraisal - not that I wouldn't do that for some - but I want to understand how others think when setting BIDs in a market that has so few, if any, rules to it. I want to put some sort of order to this chaos to improve my sales. Will the "rules" I establish for myself always work? No - because as you said there really aren't any hard and fast rules. For every 10 domains that fit a rule you will have 1 or 2 that break it. But at least it helps me keep my sanity and price my domains better. And I am sure there are a lot of others out there that feel the same way.

Thanks!

 

[alcy]

great. at least we went from total disagreement to total agreement

but I still think the only way to get idea of what yoru domain is worth is to post name here, get 100 people to take shot at price, add it up and divide by 100 consider it, it might be fun game for all.

and to do this for every domain. cause the thing about brandable domains is that they are all unique.

in fact if you put a brandable domain name under microscope, you would see different dna for each.

 

[svede]

LOL, well it's because I like to find common ground and you presented some.

I don't agree that you can know what to set the price of something by what it will finally sell at (discounting the possibility of time travel). You can use past sales, similar BIN (i.e., keeping your similarly priced to its competition), etc - but now we are delving into the whole point of this thread - what stats/processes/methods do people use when setting the prices.

Assuming the 100 people were all people who sold brandable domains, then yes, that would probably help. But I am still left in the dark not understanding why they are priced that way. I am not someone who likes to be left in the dark - I want to understand and believe it is critical to running a business. No, I won't understand everything and rules can be broken, but at least I can manage better. Plus, where would I find 100 people to price each of my domains. What about when I am using what I would list it as BIN for helping me determine if it is worth buying?

But I think we both agree it is isn't easy to determine and there are no rules that will never be broken. Yet People keep setting BINs on their brandables domains (and selling them) and I want to understand that. I don't want to keep discussing how impossible this is, because it obviously is possible (even if the answer is just gut/experience - as in they don't really know why they price something at $x,xxx).

Thanks!

 

[alcy]

I absolutely agree that there aren't clear rules... but that doesn't mean certain methods don't work better. I have ideas on what to price my domains at - I feel I at least know the general "value" based on studying past sales. However, I am looking for other people's thoughts - many of whom have shared already. I don't simply want an appraisal - not that I wouldn't do that for some - but I want to understand how others think when setting BIDs in a market that has so few, if any, rules to it. I want to put some sort of order to this chaos to improve my sales. Will the "rules" I establish for myself always work? No - because as you said there really aren't any hard and fast rules. For every 10 domains that fit a rule you will have 1 or 2 that break it. But at least it helps me keep my sanity and price my domains better. And I am sure there are a lot of others out there that feel the same way.

Thanks!

lol

umm.... how exactly do you go about putting logic or order into something that by definition and nature and design is illogical and full of chaos?

maybe I should begin by asking u whether you are at all open and prepared to accept the possibility that your quesiton may not have an answer at all?