question Pricing strategy to flipp and sell fast

[TDM]

What's your pricing and offering strategy to sell average domains fast?

Happy to get any input on this topic.


I thought about:

1. Research at namebright for similar

2. Filter out high and low end sales

3. Get average price

4. Shoot little bit lower with nice tag (199$ not 212$)

5. List on various places (sedo, afternic, flippa, eBay, etc) with fixed BIN

6. Quick turnaround?


Make some sense?
What's your take/advice?

 

[jstenn13]

If you're looking to flip domains fast then you'll have to be fine with selling for under market value in most cases. For example, say you buy a citydentist.com domain for $100, if you want to flip it quickly then do outbound marketing to dentists in that city and don't mark it up a ton. Make the price something that would be silly for them to pass up. Offer it for say $200 to $300 instead of trying to flip it for $2,000. You'll be able to flip it much quicker and put some profit in your pocket and use that profit to repeat the process over and over again, assuming you have some sales skills to allow you to get deals done.

Flipping is a whole different ball game and business model than investing. In flipping you don't really care what the domain is so much as if you think you can buy it for (x) and resell it for (x + a little profit) in a very short time frame. You're less concerned about retail values than you are if you're investing for the long term and waiting for an end user to come along and make you an offer. So you just have to decide which business model and type of domaining is right for you, flipping or long term investing.

 

[.NJ]

There is a simple solution....

Don't fall in lover with your names.

I shoot for 50 to 100% more then I pay.

Double the purchase price is my target point.

This seems to work well for fairly quick flips.

Kevin.

 

[catchmesleeping]

hmmm - if I was new in the game, and was trying to earn some money, with as little investment as possible, I would do something like this:

1. study namebio, and figure out what names are being bought, by who, and for how much.
2. go find names that are similar, and negotiate a price with the current owner
3. if the price is less than the recent sales price, contact recent buyers, to see if you can make the deal

In a scenario like that, you'll be learning how the market works, and at the same time building connections on both sides of the market. As you're doing that, you might also be able to invest your earnings into other good deals that you become aware of through trading and outreach.

I wouldn't buy up too much of your own inventory in the beginning, unless you have money that you don't mind losing.

 

[Kuffy]

I've seen so many people burned by attempting to flip names. The sequence goes something like this -

- I need a new car, but it'll cost £50,000 and I've only got £500.
- I know, I'm great at finding domain names, I'll flip a hundred or so of those.
- I've got all these great 2 and 3 keyword names and typos now where can I list them?
- A couple of weeks later a thread appears on NamePros to ask how I can sell all these names because I haven't received any offers.
- A few days later the names are listed for sale - any 10 names for £5.

Perhaps this is an exageration, but I believe there is an element of truth in it. ( I refuse to reply to any questions as to whether this relates to personal experiences. ).
If you are going to flip names, then start small, and learn how, what and where to sell.

 

[Kuffy]

I'm in the process of setting up my own monetising network, and this involves playing with a variety of CMS and exploring various niches. It's going really slowly because I keep getting distracted by all sorts of things. For example Honey FAQ was going to be a simple site, but I'm fascinated by the life of bees, and the variety of honey and the marketing frauds associated with it. It has involved me buying and testing quite a few types of honey.

It goes on like this - I reg'd odd hands a few years ago to promote poker sites, but when I started a mini-site for that, I found out all sorts of interesting topics - Indian wedding ceremonies, arthritis, palmistry and a few others.

This illustrates another problem with domain investing - you can get too interested in the topic related to the domain, and lose focus on the commercial aspects. Don't build an affection for a name either. I doubt if I will ever receive an offer that would temp me to sell Honey Faq - Here is Estibot's opinion
EstiBot Value: $ 0 USD

 

[Kuffy]

I'm just pleased that there are health benefits from eating Honey. I daren't look at burger domain names.

 

[ValleyRock]

If you are going to flip names, then start small, and learn how, what and where to sell.

It's really not that hard, but you need to dig through the data - and there lots of it.

Namebio.com is a place to start. Pick a market - I suggests the usual suspects. You should a few things like, median , mean price of domains. Policies of domain registrars, policies of market places... e.t.c

The best advice I can give is to use the chinese business model ; sell cheap, sell fast, sell alot

 

[.NJ]

Thank you all for that insights and awesome advice!
Greatly appreciated

@.NJ example:

if you buy a name and the low range at namebio is around let's say 150 bucks with a median at 400
... would you still shoot for eg 45 (to double up if bought at 20) or you going straight with 120-140?

Really depends on the name itself.

If it's a stellar name you snagged for dirt cheap, then yes I would adjust the profit.

But for run of the mill average names, yes I'm fine with 50% to double my purchase price.

Example: $50 buy - $100 resell
$1000 buy - $1500 resell

Remember, these are fairly quick flips we are talking about. Not long holds.

Alot of people will disagree with my method and say the profit is not enough.

I think differently in this day and age.

Ask any financial stock guy what he thinks about my profit range.

Kevin

 

[Joshh71390]

Hey my strategy depends solely on 2 things -

1 how im doing this week in a total
2 how much i spent on the name

I always list for the MINIMUM i would accept over the domain - If i bought the name 1 hour ago for 5 bucks I might list it for 7 bucks - No bids no loss - bid gaurenteed 25%or so profit in an hour.

If ive sold say 20 domains already this week I can afford to risk losing cash in return for potential bidding wars.

If ive sold 20 domains 5 dollars profit each - And my new name costs $8 i can list it for $1 in hopes that maybe a few bids can start warring - driving the price high - worse case scenario - It sells for 1 dollars bringing my weekly profit to 95 instead of 100 - But many times a bidding war can turn a 5 dollar sale into a 20 + sale

These numbers are all just figurative but if you look at it anywhere - if you can list names at prices that brng bidders and bring profit / i never try to kick my self in the ass if its profit. Think of walmart vs joe smiths tv shop. - he might sell a tv and make 50 profit each. walmart might sell the same tv - make 2 dollars profit - but sell 12 thousand units in the time it takes joe to flip 2

 

[Pierre Barnard]

The jury is still out for me whether "Buy it Now" or "Make an offer" is the better choice.

 

[aramyus]

What's your pricing and offering strategy to sell average domains fast?

This strategy (quick flipping) is perfectly viable, but it's not popular on this forum because it requires a lot of day to day work and is not as profitable as domain investing. Your best chance is to outreach potential buyers as already mentionned in the thread. Be sure not to spam your buyers... If you decide to invest, spend only a limited amount (say 500$) and sell your initial domains before making a new investment.

 

[TDM]

thanks @aramyus! Awesome advice!!

Finding buyers/market first and get matching domain second.

 

[aramyus]

geodomains

Let's make it a bit more general: any domain where you can identify 15-25 companies advertizing (eg: adwords) for this name and that you can contact to offer your domain.
Could be citydentist.com, could be FirstNamesBar.com or whever

 

[Joshh71390]

Really like that approach. Sounds absolutely viable.

Thank you for sharing!


Guess the hardest part is to let potential $$$ or $$$$ go away for $$

Yes well heres the thing - In my opinion a name is a name - If you have blackcat.com - Sure its worth millions to one and a thousand to the other. If you can find the high price then sure - However theres a difference between holding onto names for big sales - Or Flipping names - increasing total holdings with each sale.

If you can sell 30 names in a week for 3 dollar profit each - I think it's alot easier then finding that one perfect sale for a domain.

Dont get me wrong I have every name i own listed on the big marketplaces for xxx / xxxx however while I wait for offers which might never come - I still am selling in and out. Also think about using these low numbers and just substituing them for high numbers.

If you can buy a domain that will EASILY SELL @200 for 150. Sure you might be able to sell it for 300 in 2 years. Or you could just price it to move ...200 - and make 50 bucks in an hour.

What seems more lucrative ($300 dollars to the onlooker) with the investment of 150 - Plus 2 years of registration. plus a whole bunch of missed reinvestments - over a 2 year period

Or 50 bucks in one hour

 

[Joshh71390]

Also 2 last points;

1. - The daily mover method as ill call it here - Is risky, dont let your portfolio get too bogged down, dont be afraid to cut a few losses to keep on the mission. if it doesnt sell, move to the others, MOST IMPORTANT You have to reinvest. Making two dollars off a sale is not worth it. But if you can buy a name at promo for 2 bucks. sell for 10 and then reg 5 new names - (see where im going) Out of those 5 new names say 3 sell for $10 ea and 2 never sell - Your initial investment of 2 dollars turned into 30. Some names will lose for sure- But if you reinvest in new potential sales, it works out. in the long run.

-------------

2. - Many of the big names / big sales ppl hear about are like this - They sell say RedBird.com for 5,000

For one these types of people probably bought 30 very similar names - 29 of which dont sell (Or do who knows)

Also these names are basicly held until bought - Not sure how much you know about big names - theres a guy mike mann hes like the guy ppl use in place of normal people saying bill gates.

He bought i think like 40,000+ decent / crappy / unapealing names - and he throws outragious pricetags on them. - xx,xxx

He renews these year after year - So when you see 40k for a name - how much went to the initial batch - How much goes to his renewals - How much in commission - How much in paying staff , or coders , or whatever you need to be able to actually register / find 40,000 domains that are available.

 

[MR Harrist]

if lowering the price can increase domain sales! trust me, I don't mind to give 75% discount! problems is, when buyer say no mean no! no matter how low the price is!

 

[TDM]

The jury is still out for me whether "Buy it Now" or "Make an offer" is the better choice.

I guess that BIN maybe more successful for short term trading (if well priced) because with most domain platforms your outreach and publicity is far higher on buy now (for example SedoMLS). Transactions are easier for the buyer (click and done).

I also guess that with Make Offer you maybe able to negotiate higher prices. At risk of putting your buyer of.
With average domains the choices of the buyer are almost unlimited.. so quick and smooth should win the game.

Personally i think i would "make offer" domains on
the higher quality names,
on the "investing" domains and
on any domain i not fear the renewal.


That´s general business experience. No clue if it´s the same thing with domaining.

 

[Pierre Barnard]

@TDM, that makes alot of sense. I am trying both options at the moment.

 

[TDM]

Thank you @Kuffy for that insights!

The moment you actually develop something on a domain it not only gets more complicated and **load of work to do.. but also it worth a lot more, especially when you have some sort of income proof.

 

[imadoer]

What's your pricing and offering strategy to sell average domains fast?

Happy to get any input on this topic.


I thought about:

1. Research at namebright for similar

2. Filter out high and low end sales

3. Get average price

4. Shoot little bit lower with nice tag (199$ not 212$)

5. List on various places (sedo, afternic, flippa, eBay, etc) with fixed BIN

6. Quick turnaround?


Make some sense?
What's your take/advice?

It all depends on the domain name. I sell a lot of hand regs in the low xxx range. I price them that way so they have a good shot at selling fast. There's a few hand regs I think are better quality so I either will put them make offer or with a higher bin. I list everywhere but flippa

average price $300

 

[imadoer]

It all depends on the name. I don't sell on flippa it's a buyers market

 

[aramyus]

Research at namebright for similar

How do you search namebright for similar domains ?

 

[TDM]

Think of walmart vs joe smiths tv shop. - he might sell a tv and make 50 profit each. walmart might sell the same tv - make 2 dollars profit - but sell 12 thousand units in the time it takes joe to flip 2

1 how im doing this week in a total
2 how much i spent on the name

Really like that approach. Sounds absolutely viable.

Thank you for sharing!


Guess the hardest part is to let potential $$$ or $$$$ go away for $$

 

[aramyus]

A word of warning on 'large volume' considerations: it takes about the same time/effort to sell a domain at 10$ or at 1000$. That's the main reason why many domainers are not active in the low price segment.