Pricing Names Too Low

[passini]

Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

 

[Recons.Com]

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.

To average out, you'd need sell through of 6%+, as most people sell at $1800+.

I don't think for the types of names they are offering (basically anything fitting patterns without any further analysis), that is achievable. Probably more in 3-4% range, that allows to break even and maybe even have a little profit.

Normal investor wouldn't do it. They do it for the strategic advantage, kind of lazy ass replacement of a proper marketing strategy, while alienating another segment of customers they are courting.

 

[ThatNameGuy]

Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

I've just started a "One Price" fits all domain service. Due to my background and experience I'm probably in the top 10% of domainers who hand register domains. On "average", it probably takes me about 30 minutes to come up with a decent domain that costs me just $8.50. While I've backed into this number, I'll be selling domains for a fixed price of $299, and expecting to sell 5-10% of my domains annually.

This is all in lieu of selling just 1% of my portfolio annually with an "average" sale of $1,500. At 72 I'm too old to sit around and hope and pray someone will find a needle in a haystack and pay an outrageous price for a domain that cost just $8.50.

Still at $299 my markup is 35X what I paid for the domain, not the 350X many domainers expect to be paid. The shakeup is coming....i feel it in my bones

 

[NickB]

"I'm probably in the top 10% of domainers who hand register domains"



Um.........no

 

[ThatNameGuy]

"I'm probably in the top 10% of domainers who hand register domains"



Um.........no

It's really hard to be humble around here. Maybe it's closer to the top 5%

 

[topdom]

The main problem, I suspect, is that endusers don't go to marketplaces (such as Afternic) , they go to their favorite registrar (such as Godaddy). So I suspect GD buys at AN and sells at GD simultaneously. My AN domains quite often don't have price at GD when they have a price at AN. So your domain can sell for 3K, but will you get 3K minus commission. But if your price is 500, then you will be more likely sell. If my suspicion is correct, try this: make a big offer for your own domain while pretending to be a big company, and add a low price at another marketplace, and maybe then sell quickly !.

 

[Joe N]

"I'm probably in the top 10% of domainers who hand register domains"



Um.........no

I think he meant top 10% of domainers who hand reg and hemorrhage money.

 

[NickB]

I think he meant top 10% of domainers who hand reg and hemorrhage money.

Good point.....he nailed it, i stand corrected

 

[Rick Ace]

Where are these people pricing good domains cheaper?

The guy asking the real questions. They won't have any domains left to sell if we can find them.