How to Price Domains

[staringatascreen]

This is a recurring problem I face. I either overshoot or undershoot my prices. I've sold later appraised $x,xxx domains for $10 and priced others way too high and scared off interest.

Right now, I have an interested party in a pretty good 5L.com and I don't know how to price it. It's a great brandable, memorable, easy to spell, aged, etc., but the interested party is probably not likely to spend much money on it because they are not a well-funded startup or likely to have much money to invest in these kinds of things.

As I said, I'm pretty confident it's a gooden. And there should be interest somewhere down the road, but I've yet to receive any other interest (I haven't really tried very hard). But I've never been good at setting a price point and sticking to it. Should I be pricing based on the prospective client, or just setting an arbitrary price and confidently stating that?

How do y'all do it?

 

[Kate]

I like to say that the first offer received is often the last you'll ever get, and this is often true.
That depends on a number of factors, like how eager you are to make cash and move inventory. The tricky part in this business is to recognize the right buyer when he comes around.
If you are confident this is a quality domain, that could appeal to other end users, then you should stick to your guns and wait.
One thing to consider is that the sweet spot is at around low $,$$$ but many domains are selling for 3 figures. When you look at reported sales, you'll see few five-figure sales on a regular basis. The names have to be very strong to command that kind of prices.
Answer: unless your name is exceptionally unique and brandable, this is your guide.
I'm saying this without knowing the domain so....

 

[AbdulBasit.com]

Never judge any domain solely based on exact searches or the purchase price. I have sold many domains bought in 3 figs and sold in 5 figs.

You have to know the most about the potential of domain, your level of patience and several other factors which will help you in pricing the domain. Doesn't mean to say you don't ask for suggestions though.

 

[AbdulBasit.com]

It depends on many factors like the urgency of money at your end, demand of that domain from buyer, potential, patience level of seller, bit of luck, etc.
Also without knowing the domain and interested buyer for your domain, no one would be able to suggest a price.

 

[AbdulBasit.com]

What do you mean by "potential"?

For instance, I see this current domain as having good potential. It's easily brandable, aged 6 years, CVCVC.com, means a good thing in another language, etc. Is this how you measure potential? It's how I'm doing it.

I'm also too new to really gauge how valuable a domain is. This domain dropped because it was owned by a company that I'm guessing no longer functions and I just happened to pick it up as it expired. But no one else picked it up, so is that an indicator of "bad potential"? Is the fact that I receive no inbound inquiries an indicator of a "bad domain"?

I think I'm pretty patient though....

Measuring any domain's potential depends on many factors. Those are some points to be noted while analyzing any domain.

If no one picks up the domain, doesn't mean bad potential at all but also doesn't mean it will sell in 5 or 6 figs. We aren't talking about rarity here though.

Good if you are patient because that's one of the important factor to have in order to survive in this business IMO.

 

[staringatascreen]

Right, I think I was looking for more general ideas.

Like "add $100 for a domain of 5+ years" or "$50 for EMD of more than 1,000 searches a month" or something like that.

It just seems like people sometimes just arbitrarily throw a price tag on a domain. And I was wondering if there was a method to pricing that people like to follow. Just looking for some ideas.

 

[staringatascreen]

Never judge any domain solely based on exact searches or the purchase price. I have sold many domains bought in 3 figs and sold in 5 figs.

You have to know the most about the potential of domain, your level of patience and several other factors which will help you in pricing the domain. Doesn't mean to say you don't ask for suggestions though.

What do you mean by "potential"?

For instance, I see this current domain as having good potential. It's easily brandable, aged 6 years, CVCVC.com, means a good thing in another language, etc. Is this how you measure potential? It's how I'm doing it.

I'm also too new to really gauge how valuable a domain is. This domain dropped because it was owned by a company that I'm guessing no longer functions and I just happened to pick it up as it expired. But no one else picked it up, so is that an indicator of "bad potential"? Is the fact that I receive no inbound inquiries an indicator of a "bad domain"?

I think I'm pretty patient though....