Pricing Question

[BlackDiamond]

Since I'm not a domainer, I have to ask a silly question. Why is there such a wide difference in the prices of domain names for resellers and end users?

 

[sji2671]

Resellers need to keep a large enough profit margin to buy a domain, tie up funds and sell the same domain for a profit at a later date - risk versus reward.

 

[fatter]

Since I'm not a domainer, I have to ask a silly question. Why is there such a wide difference in the prices of domain names for resellers and end users?

In addition to previous posters points, many endusers use adsense and pay top dollar for traffic ie: pay google 1.00-50.00 a visitor, when a domainer buys a domain they only get a fraction of what an enduser must pay for that visitor. So even low traffic names can be very cost effective for an enduser. Also branding is importantant to endusers who are looking to create a brand around a domain that is memmorable. half of all add dollars are wasted if a person doesnt get to the site the first time and end up somewhere else.

If a company will spend tens of thousands and some case millions on adds then to pay 10k-100k on a memmorable name then it might be worth it in the long run.

Plus domainers look for steals and rarely pay top dollar, we are probably the most frugile of any industry.