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/

 

[Asfas1000]

Leaving money on the table is not as bad as it sounds lol

 

[Domainace]

Waitresses sure appreciate it.

 

[Acroplex]

Love the reference to waitresses. They serve your food and you have to be careful in that respect.

When you sell to the open wild crowds, versus e.g. on a forum, you knowingly extend your buyer range beyond a small circle of people that would show interest - and hence, would use the BIN - for the domain.

By all means, if you're content with what you price your domains at, go for it. It will only cost you a few hundred (thousand?) dollars in "tips" every time. I made those same mistakes 12 years ago, don't let that stop you re-invent the wheel.

 

[Archangel]

I've made a lotta money in the exact same thing you've lost money in. Funny how things work.

By all means, if you're content with what you price your domains at, go for it. It will only cost you a few hundred (thousand?) dollars in "tips" every time. I made those same mistakes 12 years ago, don't let that stop you re-invent the wheel.

 

[Acroplex]

I lost money when I didn't consider the financial prowess of my buyer. I used a BIN to hand on a silver plate domains that would otherwise produce 5x, 10x, 50x of a return, had I known who was "in front" of me. You can mock all you want but I don't see much substance in your argument.

This isn't a fruit market to put stickers on the produce. Every offer has the potential of becoming a monumental sale. By keeping a small town mentality one gets small town rewards.

 

[Archangel]

No mocking intended.

My argument has too much substance to list (opposed to your claim it has none), but I won't argue. Instead, I'll say: If you're gonna argue your belief, I'll argue I've lost over $500,000 of potential money. Hell, we all do. No matter what you sell a domain for, you could always have sold it for more in different circumstances. It's a question of whether or not you're a good/lucky domainer or not.

I lost money when I didn't consider the financial prowess of my buyer. I used a BIN to hand on a silver plate domains that would otherwise produce 5x, 10x, 50x of a return, had I known who was "in front" of me. You can mock all you want but I don't see much substance in your argument.

This isn't a fruit market to put stickers on the produce. Every offer has the potential of becoming a monumental sale. By keeping a small town mentality one gets small town rewards.

 

[Acroplex]

I'm not claiming that one will attain the ultimate sale by turning down offers, simply stating that once you commit to setting a price, you're pretty much done: the domain will be sold at that price. One has no second chances to e.g. research the terms for recent news or developments, registrations of similar domains or to figure out who is making the offer. There is no perfect scenario, but why lose money every time? It adds up, as you stated.

 

[Domainace]

It really does depend on the name. SeattleTaxi.com is never going to be a monumental sale. At best it might reach into the low 5 figures, and that would be a real outlier of a sale.

So you would rather not price any of your "seattletaxi" level names in the hopes of getting, if you are really lucky, maybe one or two $15,000 outliers? Against that, how many $5000 BIN sales would you lose?

The name in question here was Hololens.com. I agree that, if you are talking about brandables and future tech names, there is a huge potential upside. The case for no BIN there is much stronger there.

But even in a case like that, a seller who needs cash flow may be better off with a BIN. Maybe he can't afford to wait years for a big buyer who may or may not ever show up. He can take that $6000 and reinvest. Some people make pretty good money just selling to other domainers - which implicitly means they are willing to leave money on the table. The difference is that they get the money in hand now, and don't have to wait years to maybe see a bigger return.

Most fruit market owners need cash flow to get by. They can't operate by the same standards as Cargill.

 

[equity78]

It really does depend on the name. SeattleTaxi.com is never going to be a monumental sale. At best it might reach into the low 5 figures, and that would be a real outlier of a sale.

So you would rather not price any of your "seattletaxi" level names in the hopes of getting, if you are really lucky, maybe one or two $15,000 outliers? Against that, how many $5000 BIN sales would you lose?

The name in question here was Hololens.com. I agree that, if you are talking about brandables and future tech names, there is a huge potential upside. The case for no BIN there is much stronger there.

But even in a case like that, a seller who needs cash flow may be better off with a BIN. Maybe he can't afford to wait years for a big buyer who may or may not ever show up. He can take that $6000 and reinvest. Some people make pretty good money just selling to other domainers - which implicitly means they are willing to leave money on the table. The difference is that they get the money in hand now, and don't have to wait years to maybe see a bigger return.

Most fruit market owners need cash flow to get by. They can't operate by the same standards as Cargill.

I agree it comes down to a lot of factors, I have sold a lot of LLTV.net and .org names I always set a buy it now, because they are handregged names, I make a little ppc and sell in the $299 to $899 range. It would be an incredible outlier if someone came along and would pay $10,000. Even within that micro niche that I have spent ten years focusing on, there are names in there I would not buy it now $299 - $899, If I owned LAtv.org which I won on Go Daddy but the gentleman renewed, MyTV.net or .org, DCTV.net or .org, names like that I would make an offer. But I have sold at buy it now names like HPtv.net, Sntv.org, Bntv.net,ZZtv.org.

If you own a brandable you can't price it because you may get busy and not be on top of where that future trend is at the current time.

I would never buy it now an LL,LLL, CVCV - Any numeric domain name.

 

[Domainace]

That's a cool little niche. I never would have thought of it, and yet you are churning out regular sales in it. That's one great thing about domaining - there are so many different ways to go about it. Always an opportunity where nobody else is looking.

 

[Sukhvir-Singh]

Buy it NOW or Best Offer will work well as in ebay auctions!!

 

[Pattern]

Sometimes it also comes down to cash flow. If a seller needs money fast, it's advantageous to set "buy now" listings since they have been proven to sell at higher percentages than negotiable ones.

 

[Acroplex]

You can also give the domain away for free, most buyers would go for that option.

Sarcasm aside, the argument is about getting money vs. more money. The choice is clearly yours.