Finteza

Sales Strategy For More Revenue

Labeled as discuss in Domain Selling and Domain Sales started by Federer, Dec 6, 2018.

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  1. Federer

    Federer Top Member VIP ★★★★★★★★★★

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    For those that own thousands of average-good quality brandcentric domains, do you generate more revenue overall by:

    - BIN-pricing high and selling fewer domains
    - BIN-pricing low and selling more domains
    - Leaving most on “make offer”
     
    Last edited: Dec 6, 2018
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  2. Recons.Com

    Recons.Com Active Member VIP

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    I don't price low unless I am not planning to renew or bought just for traffic and don't think highly of the name itself.

    I price most names in 1800 to 3000 range with bin.
     
  3. viniproject09

    viniproject09 Upgraded Member Blue Account

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    I have sold few domains in past . I keep a BIN price always as per my satisfaction.
     
  4. AuthorityDomains

    AuthorityDomains Established Member

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    Still testing out what works best. But so far using lower BIN pricing I have noticed a fairly decent % of sales at just under 2% of portfolio within the first 6 months. If the ratio continues I'd hit 4% sales ratio which may be slightly higher than industry standard.

    Assuming the following;
    10,000 names
    400 avg sales price
    4% avg sales ratio
    160,000 revenue

    OR

    10,000 names
    800 avg sales price
    1.5% avg sales ratio
    120,000

    Although if achieved 2% avg at higher rate would yield same revenue at 160,000

    The other aspect is how much time/effort is involved. Selling more involves more time with negotiations/transfers. Although high pricing may involved longer ongoing negotiations.

    My opinion is based on a lower volume with approx 1600 names and increasing. I'm sure different regions/tlds may give different results too.

    If you hold names for numerous years, then higher pricing and/or make offer could be a better way to go. But for volume sales I'm sure pricing lower is a better option.
     
  5. MapleDots

    MapleDots Domain Properties 2010 - 2018 VIP

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    60k revenue once you factor in renewals

    I would not work for 60k per year
     
  6. Jay Ha

    Jay Ha Exploring.. Gold Account

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    Although this is a very optimistic sales ratio, it is still not feasible given the amount of -yearly- investment and work needed to get anything close to 60k, which is not guaranteed. I'd rather invest in a small amount of domains and hold for a longer period of time = higher prices = better ROI.
     
  7. mayazir

    mayazir VirtualNameMarket.com VIP

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    Better sell 100 domains for 50$ and use $500 to buy a decent name, than keep 100 domains dreaming and paying renewals.
    If you couldnt sell them in 8 months - sell them for something and search for another domain.
     
  8. AuthorityDomains

    AuthorityDomains Established Member

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    Everyone has different goals and targets. Although I'd be aiming more at 100k+ profit per year as purchase names at discount
     
  9. AuthorityDomains

    AuthorityDomains Established Member

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    Everyone has different models. What works for one person may not work for another person. Hows' it going with a small portfolio of decent names?

    Personally I've sold almost 30 names in the last 6-7 months and my profit margin is at 89% of initial investment.
     
  10. Jay Ha

    Jay Ha Exploring.. Gold Account

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    I'm still building my portfolio, currently at ~60 domains but going to drop more than half of them because I realized they are crap. Got my 1st name 3 months ago so I'm still new in this, have 0 sales in my books.

    True.
    OK so let's put it this way:
    • 1,600 domains regged 6-7 months ago, let's say you have 6 more months before renewals.
    • 30 names sold at 400 USD a piece has returned 89% of your initial investment, this makes your investment at more than 25,000 USD, meaning you buy each domain for 15 USD. But you said that you buy your domains at a discount so I guess that you're selling for lower than 400 USD. So I will disregard the 89% bit and put a 5 USD average per name. 1,600 names x 5 = 8,000 USD initial investment.
    • 30 names sold, let's say you will sell 30 more names come renewals, that will be 60 names. 60x400= 24,000 USD
    • Come renewals you will have 1,540 domains. If you find a registrar willing to transfer your domains for let's say $7/name, that's 10,780 USD
    So by the end of the 1st year, you would have paid ~19,000 USD on regs+renewals but received 24,000 USD in sales. That's 5,000 USD in the bank and 1,540 domains renewed and polished for the coming year. Now remember those 60 names that you sold? These may be your best names and you probably under-sold plenty of them. You can only sell a name once (which really sucks) and you are left with 1,540 names that may not ever sell in the coming years.

    That's based on a 1,600 names portfolio, now multiply these numbers by 6.25 and let's see if it is worth the risk.
     
  11. BrandKart

    BrandKart Pick the right name with us ! Gold Account VIP

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    what your mean by brandcentric names ? Brandables?
     
  12. Federer

    Federer Top Member VIP ★★★★★★★★★★

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    Yes. Domains like TechClub, AccessData, ClearMed, HealthPlay...
     
  13. MurphCo

    MurphCo Upgraded Member Blue Account

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    I have similar names, I just switched from offer now, to min offer $999 and bin $3000. I’ll let you know if it converts To any sales.
     
    Last edited: Dec 7, 2018
  14. AuthorityDomains

    AuthorityDomains Established Member

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    Lets just say I got most of my domains for an avg of £1 per name (rare but can be done). Actually it was less than that so my initial investment was less than £1200 for all names :)

    I don't have to renew any of the names if I choose not to!
     
  15. Jay Ha

    Jay Ha Exploring.. Gold Account

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    Getting that many names on a $1 average is awesome. If I were you I'd sell what could be sold in the first year and keep the best of the best which would be around 100 names. Will buy some really good names with the money generated and hold onto those for that buyer.

    Good business model this.
     
  16. AuthorityDomains

    AuthorityDomains Established Member

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    Thanks, I do a mix, I have some other names I hold onto as well. Names that would fetch min 4 figures.

    Like I say, it may not work for everyone as many have tried and failed to do the volume model. Whichever model you choose, its about choosing wise investments, having a selection criteria and sticking with it
     
  17. strugar

    strugar Established Member

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    What?! I wonder why would anyone pay more than 10 USD per domain; 8 USD is readily available with multiple registrars, that's what I pay for total of 50 domains, and those with bigger volumes get further discounts.
     
  18. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    Would you like to share your experience because you holds around 20K names altogether if I'm not wrong...
     
  19. MapleDots

    MapleDots Domain Properties 2010 - 2018 VIP

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    I don't price my domains.... period

    Each sale is on a case by case basis and the pricing depends on who wants it.

    I require end user details before I will quote or sell a domain. Any inquiry I get is asked to reply via my mandatory contact form at: www.MapleDots.com/contact

    At this point in my domaining career I have no interest in sales under 1k and that is spelled out clearly on my contacts page.
     
  20. Recons.Com

    Recons.Com Active Member VIP

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    My gross sales for 2018 are 136K so far, from 33 sales, average price of around $4100.

    Out of this, brandables are at $49.4K, 23 sales at $2150 average (before commissions).

    My return on capital employed is around 70%.

    I have put bin price on absolute majority of the names.
     
    Last edited: Dec 9, 2018 at 9:09 AM
  21. J Sokol

    J Sokol Established Member

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    Nice work, @Recons.Com. Just curious, how long have you been domaining and how long did it take you to start making a profit?
     
  22. alcy

    alcy Active Member VIP

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    good point
    but we also must all remmeber that someone who began domain 10 or 20 yra ago had different and better opportunities than someone who started recently...

    i think its safe to say it was quicker and easier to start make money then...vs now
     
    Last edited: Dec 9, 2018 at 3:30 PM
  23. Mister Funsky

    Mister Funsky Active Member VIP

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    To start with, I don't buy domains that I feel can not bring AT LEAST $500 (which is where the starting price for all low/mid level names have a 'make offer' minimun set at) on a quick turn. My BIN prices on all names are set at what I feel a knowledgeable business person would understand the name to be worth.

    For 2019, I think I may remove all BIN...if nothing else to save me the time of doing pricing research...also I don't have to keep paying attention to what has sold recently to determine if a trend is happening...all that research will be done once I get an inquiry.

    I would rather spend my time locating quality names that others are wanting to 'flip' for pennies on the dollar...sit on them for a while and then do outbound marketing to get the price the name deserves.
     
  24. Addison

    Addison Active Member VIP

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    Unquestionably, "make offer" leads to the most revenue and profit.

    BIN pricing can
    increase sell-through rate, but we can only sell a domain once... optimize for best price through negotiations.

    :greedy:
     
  25. alcy

    alcy Active Member VIP

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    yah.. its an unending dilema.. bin vs offer... afternic and other reps will tell you they have far more sales done through bin.. and will always recomend u set bins.. I am sure you heard it before.. and I don't mean just afternic and their premium network exposure with bin.. I mean all markets.. sedo.. gd... they always tell u this..

    the probems with bin is that for larger folios, it consumes a lot of time to set bins.. unless you have all similr quality names and you set same bin for 80-90% names.. then like other said, u have to keep track of what sold etc.. else u sell, don't own domain, and likely get banned etc..

    plus on top of it.. you may sometimes run into buyers willing to pay more than whatever bin u may have thought is proper for your name.. which is where makeoffer and negotiations would come in handy...

    all in all.. its inconslusive.. and will remain so forever imo

    imo
     

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