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discuss Reseller Pricing?

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I see a lot of comments on NPs about "Reseller Pricing". So how do most of you determine what reseller pricing is? If I regged a domain this year, reseller pricing might be reg fee + 100% or say $20. But if I have that same domain for 10 years and I have $100 invested then the $30 expected reseller pricing says I lose $70 on that domain. No way would I ever sell for that unless was going to drop it anyway.

Now if you say that reseller pricing is 30% of end user price, that I understand but still end user price is relative to what the seller thinks it is. I see way too many comments from buyers who are ticked off because they didn't think they got "Reseller Pricing". Maybe they did just didn't know it. So how to your calculate reseller pricing on your domains?
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Outside of the domaining world a reseller or wholesales price is normally in the range up to 50% discount of the enduser price. However in my experience reseller price in domaining means 90% discount or more of the expected enduser price.
 
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Let me tell you what actually is reselling price. Suppose you bought a domain " xxxx.com for $ 1000" and now you appraised it. After appraising you are sure you will sell it this domain to enduser for $ 10000. Now you are unable to sell or for some reason you want to flip it quickly to make some bucks. Now here comes another person which asks everyone to send their domain with reseller price. He is not going to buy it for $ 10000 for sure but he can except your domain for $ 2000 - $ 3000 . That mean you sold it to reseller price.
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Note it depends upon situation and every case is different. But you should be sure how to appraise that domain. If unsure, you can request appraisal of domain in appraisal thread.

Hope this helps
I think there is a misunderstanding of the term "reseller pricing".

Yes, your method works and can be considered valid but imo it's not.

A reseller price/pricing is usually defined as an agreement to purchase a large volume of something.

The term I think people are referring to is "Resale Price"

https://www.merriam-webster.com/dictionary/resale price

Definition of resale price
  1. a price at which an article is resold by a business concern that buys it for resale.
 
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Resale prices are generally higher for domains with liquidity eg.one-word-com's, short domains, high search volume domains.

Domains with fewer end users or domains with little present demand could typically resell usually to other domainers for 5-20 % of end user prices.

This.

You hand reg name, you can sell it to another domainer at "reseller pricing" for $50 or you can wait < 5 years and maybe sell it to an end user for $400. The choice is yours. :woot:
 
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"Reseller prices" is a polite way to say "understand that I will pay very little, take it or leave it".
 
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I think that works something like this. The high average sale price of a random good handreg domain or low cost dropcatch domain is somewhere between 1k and 2k at big markeplaces. Also, for an average to good portofolio, the annual sale rate is around 2%. So, if you buy 100 domains as reseller, probably you will sell 2% of them in one year...that means on average 3k minus marketplace fees and taxes. So, if you buy 100 average domains for 10$ each, that's 1000$....and you will make on average 2k+ net. Probably double the value it will worth the risk to invest and wait for an enduser, but if you will buy the same domains for 20$ each, you will risk that amount without making any profits or even loosing some money. Everything depends of the probability of selling and the price you could ask for it. Even for good portofolios, 5% turnover is very good, so everything depends on how fast you think it will sell for for what amount. No sane investor will buy something at half price, because it will not worth the risk, nobody has a turnover of 50%, just in case when you have a buyer in mind already and you think that there are 90% chances that he will buy it. The big problem is when you count the value of a domain that you had it for 10 years, and the probable price sale of that domain will be 1.5 k, nobody will want to risk paying you 100$+ covering your renewals for 10 years and a little bit of profit, because it's not worth it, so probably you will ed up drop it, loose money selling at reg fee or sale it to end user(if you are lucky). Also, orther things that count is rarity, liquidity(it's worht paying 50% of the value, because you know you can sell it for double the value within one year for a llll.com for example)
 
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While technically it can mean almost anything .. and also varies domain to domain. If you want a vague average fuzzy number ... it's 10% of retail.

Essentially a lot of domainers have a maximum purchase price of 10% of what they think they will sell it at. Their reasoning is that they need that wide markup to maintain the rest of their portfolio renewals year after year (as well as pay their rent, etc etc).

While again that number is not in any way set in stone and veries from domainer to domainer as from domain to domain ... a as rule of thumb I think it's safe to say that the margin (% difference between "wholesale" and retail") in question goes down as the value of a domain goes up .. and conversely goes down as the price goes down.

So a $2000 retail domain might be wanted for $100 .. and a $100,000 retail domain for $50,000

Again .. those are just generalised examples .. there really is no exact science .. just as there is not real exact science on the pricing of non-liquid domains .. so at the end of the day what it means is that the person wants to buy it really cheap so that they have a wide enough margin to make it part of their portfolio WHILE being sure that portfolio pays for itself.


Remember that part of that calculation is that an average portfolio of an experienced domainer is supposed to sell about 2% of it's domains a year (again .. this is just very generalised .. the actual number varies quite significantly depending on quality and pricing). So essentially the margin between their "wholesale" purchase price and "retail" selling price needs to be able to pay for the 98% renewals of domains that don't sell in a year .. plus their expenses .. plus a profit for them to live off of ...


Please don't criticise what I said ... as I'm not saying it's right or wrong to expect to buy/sell at any particular price .. just telling you like it is .. ;)

Fact of the matter is .. that if you are selling to almost anybody on NamePros or any other domainer focused forum/website you will almost never come close to selling your domain at full retail pricing unless it's to an outsider coming in with a very specific purchase request ... but that's under 1% of sales here .. at the most .. it's a big mistake to expect to get anything close to retail value in this forum. (Otherwise we would all be rich .. lol)
 
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While technically it can mean almost anything .. and also varies domain to domain. If you want a vague average fuzzy number ... it's 10% of retail.

Essentially a lot of domainers have a maximum purchase price of 10% of what they think they will sell it at. Their reasoning is that they need that wide markup to maintain the rest of their portfolio renewals year after year (as well as pay their rent, etc etc).

While again that number is not in any way set in stone and veries from domainer to domainer as from domain to domain ... a as rule of thumb I think it's safe to say that the margin (% difference between "wholesale" and retail") in question goes down as the value of a domain goes up .. and conversely goes down as the price goes down.

So a $2000 retail domain might be wanted for $100 .. and a $100,000 retail domain for $50,000

Again .. those are just generalised examples .. there really is no exact science .. just as there is not real exact science on the pricing of non-liquid domains .. so at the end of the day what it means is that the person wants to buy it really cheap so that they have a wide enough margin to make it part of their portfolio WHILE being sure that portfolio pays for itself.


Remember that part of that calculation is that an average portfolio of an experienced domainer is supposed to sell about 2% of it's domains a year (again .. this is just very generalised .. the actual number varies quite significantly depending on quality and pricing). So essentially the margin between their "wholesale" purchase price and "retail" selling price needs to be able to pay for the 98% renewals of domains that don't sell in a year .. plus their expenses .. plus a profit for them to live off of ...


Please don't criticise what I said ... as I'm not saying it's right or wrong to expect to buy/sell at any particular price .. just telling you like it is .. ;)

Fact of the matter is .. that if you are selling to almost anybody on NamePros or any other domainer focused forum/website you will almost never come close to selling your domain at full retail pricing unless it's to an outsider coming in with a very specific purchase request ... but that's under 1% of sales here .. at the most .. it's a big mistake to expect to get anything close to retail value in this forum. (Otherwise we would all be rich .. lol)
Most of them will not pay 10$, because that means that for an average domain that you sell for 1.5 k at sedo, BB, godaddy or others, they will pay you 150$ each. So, for 100 domains they buy at 150$ each they will pay 15k but at 2% turnover in one year they will make 3k. So, i's not worth it. They can renew the rest of that 98 left domains, but this means renewals, locked money, trends changing. They will need 7-8 years just to break even, so just somebody who doesn't know it will pay this amount.
 
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Most of them will not pay 10$, because...

lol .. that's why I said that the 10% is a very fuzzy number .. and more importantly I also stated that the % goes down as the value of a domain goes down. The example I gave was $100 for a $2000 domain .. which is actually 5% .. but again .. just an example .. could easily be less for some domainers .. and that's also assuming both sides see the exact same retail price for the domain in question (which that in itself is pretty rare .. lol).

The main takeaway was that "wholesale" means a tiny fraction of retail .. the number is not exact .. but what is for sure is that it is nowhere near the 70%, 50% or even 30% of retail some people selling domains here in the forum hope it would be.
 
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reseller pricing:

when stated in a dn wanted thread, like:
"i am a reseller, do not send me end-user prices"

to me, that means.. go to next post, don't bother reading

reseller pricing:

when stated in a dn wanted thread, like

"seeking LLLL.com at reseller prices, total budget $20k, budget per name up to $3k, depending on letters"

then i may click the link to see happening


i think reseller pricing is vague, with margins that can reach and exceed what some would consider end-user pricing.

it's relative to quality of the domain and or domains being considered

it's relative to the mindset/mentality of the parties submitting, and reviewing.
as either or both could hold different or same valuation for names on the table.

it's relative to the venue/ platform, and the perceived expectations that the participants will have.

but here's a thread below that's very related to this topic:

https://www.namepros.com/threads/ev...t-check-the-budgets-in-domains-wanted.862509/


imo....
 
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when stated in a dn wanted thread, like:
"i am a reseller, do not send me end-user prices"

to me, that means.. go to next post, don't bother reading

reseller pricing:

when stated in a dn wanted thread, like

"seeking LLLL.com at reseller prices, total budget $20k, budget per name up to $3k, depending on letters"

then i may click the link to see happening

This is my thoughts exactly. After sending a couple of PM's with domain and price and the reply I received back, this is what I do now.
 
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Reseller pricing for domains is a factor of realistic end user pricing, potential sell-through ratio and its liquidity, if any.

LLLL.com is liquid, so reseller pricing is about 1/5 to 1/10 of end user prices. Because you can always recoup your investment +/- 20% (unless you bought chip at their peak, which you shouldn't have done anyway), basically you need to make some return on your principal amount (let's say around 10%-15%) plus renewals...

Made-up brandables are different. There are pretty much not liquid. You need to build up big portfolio for regular sales and that results in large renewal costs, so reseller pricing is 1/50 to 1/100 of potential end user sale...
 
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