strategy Never set a BIN price for your domain names

[News]

Selling your domain names on a venue with a fixed, “BIN” price opens up a can of worms.

Not only you’re disclosing the price to the public, particularly on Sedo, but you’re also risking getting much less money that what the domain might be worth.

Not only you’re disclosing the price to the public, particularly on Sedo, but you’re also risking getting much less money that what the domain might be worth.

Setting a BIN price supposedly generates more sales that close quicker, as the buyer knows in advance how much they have to ‘pony up’ for the domain name. They can also make a usually irreversible decision on the spur of the moment, buying the domain with one click. I know, because I’ve done that, but the amount involved was within my budget.

The issue is with the buyer that has a large or even ‘unlimited’ budget, large corporations that need a particular domain name to roll out a product or service. Such buyers will gladly pay less, as opposed to more money, but in the process the seller loses out a substantial advantage they might have; that, of negotiation.

Full Article: http://acro.net/blog/domains/never-set-bin-price-domain-names/

 

[RogueWriter]

Eh, seller just missed a decent x,xxx sale from me this last week because they played that strategy with me. Maybe they will sell the domain for more to someone else in 5 weeks or 5 years. -shrugs-. It's a good domain, it would not surprise me. I appreciate a guy that sells straight up, though, that's someone I can go back to when I have another niche to work. Trying to be vague up front might pay off sometimes, but sometimes not so much.

 

[N-A]

I suppose it depends on what side of the table you're on.

Some names I have listed for offer and others, I would be satisfied getting rid of them as is because they are dogs that will drop within 1-6 months. There is not enough negotiating time on the table for those, so I just slap a sticker price on them.

I like how HugeDomains does it, everything is a BIN, except there is no wiggle room down. With BuyDomains, there are mostly domain names with a BIN set, but you can call and negotiate names down to an extent.

Everyone has their own strategy that works for them and with the two big domain markets mentioned, it works for them or they wouldn't be around. Sure, they could get 6 figure sales on some names they let go for 4 and 5, but I'm positive they're not kicking themselves in the butt everyday for not negotiating. They have too much volume to do so and would cost them a lot more if they weren't to set BIN prices.

In the case of @RogueWriter , it lost the seller a sale today because the BIN wasn't set where he was going to buy at or the negotiations didn't cease, possibly it was too much back and forth to move forward with it. Care to elaborate how many offers / counter-offers went out before you gave up? That would be interesting to know if you kept going up, but they did as well, until you decided enough was enough and terminated negotiations.

The tactic of no BIN does work in some cases and in others, it can lose you a sale today. This is why I set a BIN on some and others not.

 

[Nattydomain]

To say NEVER price a domain is to strong. Sure huge generics should be left open for offers but secondary domains or brandables and such with the RIGHT bin price it can make it easy to sell. Really just depends on your financial status at the time.

 

[Archangel]

Nope, this is wrong--and it's a mistake, oftentimes, to NOT use a BIN.

It is true that a domain is only worth what the people would pay for it. But a BIN induces irrational thought and spastic/impulse purchasing. Sometimes, having a BIN is bad. But I've noticed many ppl OVERPAYING when BIN is the price-tag. Yeah, there are times BIN is bad but for the most part, BIN'S HELP AND DO NOT HURT!. Who wrote this ignorant article? Did they research anything?

 

[Name Trader]

Not setting a price and then going first with the price is pointless. And probably my worst mistake I make repeatedly. Would like to know how you guys counter that necessity, after 3 emails from the prospective buyer, still asking for your price.

PS: I'm even considering being a tad rude. Saying my price is $10k. So what is your offer.

 

[domaincandy]

More bad advice. I don't take anyone seriously who won't give me a price. Those who won't mention what they want for the name are basically losers looking to scam someone. One thing that I never do, and almost all scammers and losers do, is send a name to Sedo auction. There are actually people who own names who put the buyer through that garbage. Then they have their friends shill bid and boost the price up.

The bottom line is that those who want to buy a domain want the transaction to be as quick as possibly. There is no other group of idiots in the whole world of 7 billion people who, when they get a sale, put the buyer through a 7 day auction. But domainers do it with no shame at all.

Of course, the mindset of 99 percent of those with domains is to find someone with a lot less knowledge than them, so they can rob them with an outrageous sales price. These are the same idiots who think that because they got an offer 7 years ago for a name, then they can never sell it for less. They will actually tell you that they have received a higher offer years ago, and therefore, they could NEVER sell it for less. Or, even worse, they will try to sell a garbage name for a few hundred, and mention that they are taking a loss because they paid $500 for it. I mean, we are talking real lowlife losers who don't know a thing about business. You can't make this stuff up.

 

[Archangel]

It's been proven that domains with price tags/BIN's sell better and more frequently than ones with an "Eh I dunno--make me an offer & we'll discuss things" listing.

More bad advice. I don't take anyone seriously who won't give me a price. Those who won't mention what they want for the name are basically losers looking to scam someone. One thing that I never do, and almost all scammers and losers do, is send a name to Sedo auction. There are actually people who own names who put the buyer through that garbage. Then they have their friends shill bid and boost the price up.

The bottom line is that those who want to buy a domain want the transaction to be as quick as possibly. There is no other group of idiots in the whole world of 7 billion people who, when they get a sale, put the buyer through a 7 day auction. But domainers do it with no shame at all.

Of course, the mindset of 99 percent of those with domains is to find someone with a lot less knowledge than them, so they can rob them with an outrageous sales price. These are the same idiots who think that because they got an offer 7 years ago for a name, then they can never sell it for less. They will actually tell you that they have received a higher offer years ago, and therefore, they could NEVER sell it for less. Or, even worse, they will try to sell a garbage name for a few hundred, and mention that they are taking a loss because they paid $500 for it. I mean, we are talking real lowlife losers who don't know a thing about business. You can't make this stuff up.

 

[NameOmnia]

More bad advice. I don't take anyone seriously who won't give me a price. Those who won't mention what they want for the name are basically losers looking to scam someone. One thing that I never do, and almost all scammers and losers do, is send a name to Sedo auction. There are actually people who own names who put the buyer through that garbage. Then they have their friends shill bid and boost the price up.

The bottom line is that those who want to buy a domain want the transaction to be as quick as possibly. There is no other group of idiots in the whole world of 7 billion people who, when they get a sale, put the buyer through a 7 day auction. But domainers do it with no shame at all.

Of course, the mindset of 99 percent of those with domains is to find someone with a lot less knowledge than them, so they can rob them with an outrageous sales price. These are the same idiots who think that because they got an offer 7 years ago for a name, then they can never sell it for less. They will actually tell you that they have received a higher offer years ago, and therefore, they could NEVER sell it for less. Or, even worse, they will try to sell a garbage name for a few hundred, and mention that they are taking a loss because they paid $500 for it. I mean, we are talking real lowlife losers who don't know a thing about business. You can't make this stuff up.

I pretty much agree with everything you said.

I would also add that part of the problem is caused by the fact that 98% of buyers are domainers who just come around offering a few bucks for names that are worth more. While is fully understandable that everyone tries to buy cheap to sell for more we have to keep in mind that this industry doesn't have set rules and this contributes to confusion.

I don't know any other industry where a buyer is allowed to tell the seller " your item ( = domain ) is crap ".
I have never come across someone saying " your pair of shoes, your house, your mattress, your car is crap " People make a purchase according to parameters that are widely accepted and known.

All industries have " levels " yes. If you buy a Chines piece of clothing it is cheap and it will last only a season probably; you buy an Italian one that is everything but cheap and it will last almost forever.
You pay for what you get.
In all other industries everything is clearer; there are " rules ". Domaining is the only one I know where we still live in the wild wild west and sometimes I even doubt there is a real domain market.
Is there? If we remove domainer-buyers from the equation leaving us only with end users do you still think this is a real industry with a real market?

 

[enlytend]

If I'd written this article, I'd have shut off comments too ...

The issue is with the buyer that has a large or even ‘unlimited’ budget, large corporations that need a particular domain name to roll out a product or service. Such buyers will gladly pay less, as opposed to more money, but in the process the seller loses out a substantial advantage they might have; that, of negotiation.

(sigh) This sort of attitude is one reason many non-domainers view the industry as something akin to used car salesmen, ambulance chasing lawyers and that green stuff at the bottom of a pond.

IMO, if your domain is worth amount x, it's worth amount x regardless of who the buyer is. Your pigeons*** doesn't automatically turn to gold if someone who can "afford more" comes knocking. Personally, I prefer BIN pricing - easier all around.

 

[N-A]

Either way this turned out, the seller should be on the pessimistic side that he made $6750 more than a lot of other domain investors did today. Sure, he could have gone higher, but don't live in the past.

Living with past mistakes doesn't get you further, just drags you down.

Congrats!

 

[Archangel]

I'm hoping a mod will just erase this thread before the misinformation hurts noobs
Really, who wants ANYONE to learn worthless practices like this?

 

[Acroplex]

Never been called a used car salesman before. I guess some people don't want to ever learn.

 

[Acroplex]

If you respond with "Eh, I dunno - make me an offer" you will just get an offer. If you research where the offer came from, who the person inquiring is, engage in some meaningful communication on the phone/email and then decide to state your range, you stand to get more money than putting a price tag that you cannot alter.

Leaving money on the table is clearly a mistake n00bs make.

It's been proven that domains with price tags/BIN's sell better and more frequently than ones with an "Eh I dunno--make me an offer & we'll discuss things" listing.

 

[Archangel]

You'll reply with $10,000. The buyer will counter with $5. You'll say,"I can go lower, but I'm looking for high $xxxx at the least." You'll then get a $15 offer. After you turn it down, the buyer will bitch and cry, then spout out some BS a la "You're holding the domain hostage! You're not even using it!"

If you have a $10k BIN, ppl will know from the get-go what kinda offers you'll consider

If you respond with "Eh, I dunno - make me an offer" you will just get an offer. If you research where the offer came from, who the person inquiring is, engage in some meaningful communication on the phone/email and then decide to state your range, you stand to get more money than putting a price tag that you cannot alter.

Leaving money on the table is clearly a mistake n00bs make.

 

[Acroplex]

I don't think you're following here. Read what I wrote. If you set the BIN price you can't change it. Once it's used to buy the domain, the deed is done. It's not a reserve, it's a ticket to buy the domain. That was the case with HoloLens.com, for example.

Not knowing who is your buyer and their potential range, will cause you to leave money on the table. So instead of being condescending, learn to comprehend what works better in the majority of cases. BIN prices work when the price is really low, like the offers one typically receives. If you set the BIN at $500 you will get that much.

 

[Archangel]

No, I get what you're saying. Negotiating is a good thing, but BIN's are usually better. They hurt if you have a 6-7-8 figure domain. Say you have key.com -- car/real estate/insurance etc. companies wold go crazy over it. A BIN wouldn't be wise. But if you have a 2-3-4 figure domain, a BIN pretty much never hurts.The lower in value, the more speculative the price is, in a realistic sense. 5 figures? It might be best to not use a BIN, but it'd probably be good for early 5.

 

[N-A]

I've personally witnessed and encountered these same events, reseller wise with @Acroplex .

There was one name I was about to hop on that had a mid-xxx BIN. Well, he did and is now using it as a landing page, before I could start a financial blog on it.

The buyer had two interested parties, but Acro was quicker than I was to hit the reply button.

He got it and I missed out.

Another encounter, I bought a name that I see was undervalued that even he posted as I believe a 24-hour BIN.

I thought on it for 1-2 hours and bought it at that price.

Great name IMO and have to say: sorry Theo, I got a nice ROI off of it in about 6 months when you gave me around 2 years of registration on it. (Decision of myself to sell is another discussion)

So in both instances, the seller Theo bought the name from lost money by having a BIN and Theo lost money by setting a BIN.

The pendulum can swing both ways and we all make mistakes. I believe that this is an educational and informational post that domain investors should research on their own, rather than take the popular vote. It can happen to anyone.

 

[Asfas1000]

I can see 3 reasons why a buyer would prefer a BIN :

1) The buyer wants to avoid time wasting through O/CO back-and-forths
2) The buyer can spot a clear value in buying at the current BIN (This often means that the seller mispriced the domain)
3) The buyer knows that a seller without a BIN is looking to extract as much money as possible from him, and avoids non-BINs altogether

 

[Domainace]

Never say never. Leaving money on the table is a fact of life if you are selling any volume. Some people can afford to sit on a pile of domains with sales few and far between. Most of us need some cash flow from sales. BIN helps with that.

This case is one case, and yes it would sting. But the important thing is where you are at the end of the year (or whatever your financial horizon is). Hard to say how much the seller would lose in sales if none of his/her names were BIN priced. For that matter, it's hard to know how much more he could have gotten from the buyer had he not BIN priced. Big companies are getting pretty smart about covering their tracks.