NameSilo

Pricing Names Too Low

Located in General Domain Discussion, started by passini, Sep 11, 2020

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  1. twiki

    twiki Top Contributor VIP Gold Account

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    I've noticed that too, been running for a while. However for these names I think it's an investor that doesn't have much skill OR has a specific plan (foreign lang?), not Sav. I mean .... they should know better.
     
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  2. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    Some sound foreign but it is random. They use related domains i guess so foreign names gets filtered
     
  3. Nikhil Jain

    Nikhil Jain Top Contributor VIP

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    Brad, I agree with your point. To take things a bit further, what does your experience suggests in the following scenario?

    Does pricing a $2500 domain as $5000 make much of a difference? Under 5k, in general, does it really affect the STR with that price change? If not, then wouldn't it be wise to price them all at 5K in order to achieve a higher turnover?
     
  4. DOMAIN ILLUMINATI

    DOMAIN ILLUMINATI Owner of ▲ the most expensive domain of all time. VIP Gold Account

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    Sure, since I consider the fact that many other industries have such a market (highest price), the answer is yes.
     
    Last edited: Sep 12, 2020
  5. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    I think it matters on the type of domain here.

    You will often start hitting resistance on certain types around $2,500 such as GEO .COM or second tier extensions.

    With just pure (2) word .COM not as much in my experience. You can also have a BIN with make offer. If someone was going to offer $2,500 - $3,500 a $5K asking price is unlikely to turn them away.

    I think a BIN price with a min offer of 50% - 60% of the asking price is a pretty good option with most domains. It will weed out the lowballers and save you time and energy.

    Brad
     
    Last edited: Sep 13, 2020
  6. CraigD

    CraigD 360promo.com VIP

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    I think a lot of investors have decided to dump their portfolios for whatever they can get at the moment.
    In times of uncertainty it may be wiser to be debt free over being (virtual) asset rich.
     
  7. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    Where are these people pricing good domains cheaper?
     
  8. twiki

    twiki Top Contributor VIP Gold Account

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    It's not the regular investors, but the big mass of those with just a few domains, if not even just one.

    I've seen growth in the low end sales, and the reason is simple. Trying to survive under current situation, and not trying to make a business for the long term.

    For the seller, might be the need to put food on table now. For the buyer, might be the same as their job or business has failed so now they need a domain to try their luck at something else, and fast.

    None of these two types will roll more than a few hundred.
     
    Last edited: Sep 13, 2020
  9. thedomainpromoter

    thedomainpromoter Restricted (Chatroom)

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    almost all my domains are priced under 1k. (currently)
     
  10. twiki

    twiki Top Contributor VIP Gold Account

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    Nothing wrong with that. In my opinion the price is right for these domains (Edit: took a look via your link). And you're likely going to be in profit if any of them sells.

    The thread is however about domains with a significantly higher retail value, that are being sold in the 1K range for whatever reason. Which is, in essence, a mistake.
     
    Last edited: Sep 13, 2020
  11. trelgor

    trelgor Established Member ICA Member ★★★★★★★★★★

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    Depends on strategy. Price should be as low as possible while still letting sales provide decent return overall. To flip the switch and shoot the moon, if you are so inclined, you need a serious portfolio and serious balls.
     
  12. pokainc

    pokainc Top Contributor VIP ★★★★★★★★★★

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    Tons of decent names are showing up $280 on SAV landers which to be honest is frustrating to see....and no, most are not names that as a reseller I would pay $280, but definitely worth 2k+ to end users. It's the reason so far I refuse to join their business as a client.

    This strategy is a plague to the industry. Not sure how much money they are making off this strategy, hope it's worth it for the disservice they are doing to the industry as a whole.
     
    Last edited: Sep 13, 2020
  13. passini

    passini Established Member ★★★★★★★★★★

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    I noticed this too. I backorder a few names everyday, just after the drop I check what's left and I may re-register one or two more by hand sometimes. I put the others that look decent in my watch list, I noticed several of these regged in a day or two and for sale at sav for 280. These are not so good domains but not so bad either. I dont see how is sustainable to make money in this way. If there is an enduser interested he will pay 1280, for a business it is a small sum. If it is not interested he is not going to buy even at 280, and domainers will not buy these at 280...
     
    Last edited: Sep 13, 2020
  14. pokainc

    pokainc Top Contributor VIP ★★★★★★★★★★

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    I understand people can have their business models, but I can't see how that is sustainable unless you have so many names that are selling within the first year.. also the msg it's sending is domains are not valuable. equating 1-2 sneakers to a digital address that can potentially be the home of your business for years to come... many are annoyed by this 280 crap going on.
     
    Last edited: Sep 13, 2020
  15. passini

    passini Established Member ★★★★★★★★★★

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    But if everyone noticed this 280 thing I don't think is a domainer because we are talking about a lot of names... Could be SAV that for some reasons is making this? If this is the case it is not the first registrar buying names but why price them so low and all at the same price? I dont see a reason, I can think a couple but doesn't make sense to me anyway...
     
  16. pokainc

    pokainc Top Contributor VIP ★★★★★★★★★★

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    that's the thing.. not sure if it's SAV itself or this particular domainer that uses SAV at a fairly massive scale..
     
  17. NameDeck

    NameDeck Top Contributor VIP

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    Sav are domainers themselves. I bet it is sav selling those domains or a domainer with close ties to them. You would need a lot of data to be able to make the sales to remain sustainable at that price point, data a registrar would be able to collect, data mined from domainers utilizing their services.

    Another theory is someone is outbounding those names like crazy. The $280 price point could work. I've seen some survive for years with lower asking prices.
     
  18. bruhne

    bruhne Established Member

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    I aim to be flexible on pricing and strict on quality. I am still learning, getting better, and thus far profitable.
     
  19. Pay.My.id

    Pay.My.id Top Contributor VIP

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    Some of my personal experience teach one things: Know more on your buyers ,let them price your domain and ask more question before closing the sales.
     
  20. poweredbyme

    poweredbyme Webmaster & Entrepreneur VIP

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    Selling for too low may be very profitable if you do it at mass scale. But obviously it would drop all prices.

    However I always think most domains are overpriced. Most domains are not worth even $280. If someone can still sell domains for $280 at a mass scale (I didn't know it) it must be for the constant bubble in the market. "too low" may be incorrect definition especially in a shrinking economy.
     
  21. Ostrados

    Ostrados EpicName.com VIP

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    The problem is that reducing prices a lot does not increase STR a lot. You may have noticed that your sales are not affected a lot when you do aggressive prices reduction, that is be because there is a cap limit that prevents low pricing model from working:

    For example if probability of selling a $2000 domain is 1% per year then reducing its price to $1000 might increase it is selling probability to 2% which is good, but if you reduce price farther seliing probability will not change a lot, if you reduce it to $500 selling probability may increase to 2.1% then 2.2% at $200.

    So the selling through rate (STR) for your portfolio does not increase linearly with lower prices , there is a saturation limit after which reducing prices any farther will not make any effect.

    On the opposite hand, increasing prices aggressively can greatly affect your STR especially after $5000 mark, the higher the price the lower STR.

    IMO best strategy is to price your domains just right, do extra effort in evaluating your domains and price domains that worth xx at xx, and domains that worth xx,xxx at xx,xxx. Don't overprice or underprice your domains.
     
    Last edited: Sep 15, 2020 at 4:30 PM
  22. Recons.Com

    Recons.Com Top Contributor VIP

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    SAV model is different. To breakeven at their cost of $8.2 or so as registrar, at price of $280 they need sell through of 3% which is achievable at that price point. Even if they don't make a dime from it directly, for every 1000 names owned, they get 30 new clients that open SAV account and might have never given them a try. Even if 15 of those stick, that means they can now scale up and buy 100 000 domains, get daily traffic of 10 000 people that creates free awareness, and get 3000 new clients a year from this, out of which 1500 will stick.

    This is why no domain investor should support SAV in any way, including participating in their auctions, as their hybrid model undermines value for everyone else.
     
  23. jim h

    jim h Upgraded Member Gold Account

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    This is a widespread phenomenon. It is worth pondering deeply.
     
  24. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com VIP Gold Account

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    Depending on quality. that strategy could end up with you holding the bag or proverbial "hot potato". lol
     
  25. tomcarl

    tomcarl Top Contributor VIP

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    Some people will drop $1K or less on a domain because of a fleeting idea behind it and you'll get a lot more of these impulse buys when you have a large portfolio. It all averages out vs holding and hardly seeing a sale.
     
    Last edited: Sep 16, 2020 at 5:51 PM

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