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analysis Some VERY interesting changes in pricing (numbers and strategy) during 2021

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twiki

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2021 has been an wild ride for me. I started good, then slowed down (a lot). But after some recent changes described below, now my sales have taken off like a tsunami.

There are reasons behind this latest stream of sales and it's not just random.

For example I'm having a stream of 4-fig sales (I haven't reported all of them here BTW) but also a stream of xxx range .co sales that at least certain members here might want to learn about.

( Note, I mentioned about this a couple times in the sales thread, but I was awaiting more confirmation. I have gotten a ton of confirmation since. It's not just by chance. In fact, it has all to do with increasing my prices (!) ).

Now, here are my observations.

Note, it will not be the same for everyone else; but if you see similar patterns, my findings below might help boost your sales.

1) There is a sharp decline in low xxx range sales

At least for me. In the past I used to recommend $199 as a very good sales point. I've also had a lot of success with $75 as well and cleared a ton at this price point. I was also getting a ton of $100 offers whenever I offered that via Dan, Afternic or any other lander.

But in 2021? Not so much.

( Edit: I no longer recommend the $199 and $75 price points anymore, which other members have had success with in the past year(s). Changes seem too deep.)

In fact I sold so few of these low priced ones that I'm going to call that a ZERO result. I had almost no sales at the $199 price level in sharp comparison with the past when these made bread and butter.

Notably I also got NO $100 offers anymore. None.

( What the heck is that. Makes one scratch head. )

Theories on the above:

a) Could be the fact that my quality of acquired / registered domains has increased significantly? I find that pretty hard to believe, but it's a possibility.

b) Could be the lack of buying power of market level users (those below $300)? Maybe they are pushed down to a level where they don't pay $100 or $75 anymore. Again hard to tell.

c) Or, perhaps, marketplaces like Afternic for example don't promote well anymore domains with such low price through their network? I can't tell exactly this too, but it is indeed possible.

All I can tell is that something changed sharply in 2021 and it's not like I did something to create such a wild change.

Thing is, weirdly enough, on Dan for example or any other lander I used (not with a sales network behind) I also haven't gotten any of these low offers / low priced sales anymore. This proves to me that actually there's something at play, something in the market. Something I have yet to discover.

Now read this interesting point below.

2) I'm having a ton of sales by pricing everything clearance range, at $299. Not more, not less.

( Edit: I had some .COM portfolio listed on NP but nobody would pay more than $200 for it. I've removed the post, and since then sold 3 domains for $299 in days, through the methods listed here and have still a month to clear more. This is why I'm no longer going to clear anything anymore on NP. Few saw the value in my names... )

In January or so I had a stream of $299 .co sales. Then I made some price increases, but most decreased to $199, tested $250 and other points. Since then, I had like no .co sales whatsoever. But I didn't connect the dots then.

Note, the same domains at same prices did not sell at all in 2020. Weird.

Well right now I moved everything clearance range to $299 and they started selling fast. like 80-90% of them have an increased price as I was trying to clear everything before renewal which is end of this year, well, I was basically killing the whole thing by pricing too low.

Not only that, but all other TLDS who did not sell at all during 2021, have started selling great at $299. All off the sudden. Including .net, .org, .xyz are now selling on all marketplaces at this price point.

So I'm no longer selling ANY domain under $299. Though i plan to test a bit of them at $399 and above and see what happens.

But why $299 is such a hot price level? That I can explain.

First off, it's not $300 so psychologically it makes more sense. (the .99 thing)

Secondly, it's exactly at the top level of the market price range. This is important.

What is the market price range (if you don't know)? The $100-$300 range. This is the price range into which most individuals and self-employed, people with less income etc. will buy a domain in. Above that, it's too pricey for these buyers so then only businesses with at least some buying power will usually start purchasing. (1K-2K range for example)

Third, it's yet again about psychology (important). The price seems high for many users, but not too high so it's out of reach. It also might seem low to other users who see worst domains at $500 or $750, but not so low that it actually conveys lack of value.

So make sure you really test out the $299 price point.

Notably, this $299 price works best on other TLD's than .com. It still works for me on .com's too, but less efficient. Which makes me think i should experiment with higher pricing for my .com non-renewals/clearances, because it makes me think that a $299 price for a .com might still be... psychologically too cheap. And therefore appear not valuable enough to the buyer.

3). I've doubled or tripled my prices overall in 2021, especially on .coms. Result? They started to sell like never before.

I used to have a lot of $500, $750 or so. Now everything pretty much starts at 1.5K, 2K and above. The weird thing is, the higher I price them the faster they sell. It's almost as it makes complete opposite sense of what a discount should bring. So I still plan to increase prices further. Cool, huh?

So what causes this?

Again I believe it's psychology.

I used to price my domains low/too low. But if you search for similar domains on any marketplace, under that same price range, you will see lower quality domains (I saw that with mine). So they simply were in a pile of other stuff, and a buyer might say "okay, anything under 1k seems to be crap" so they move above that and your domain no longer appears in their higher priced search.

It might also be demand related.

I sense the demand for quality names for businesses has skyrocketed (those valued above $1.5...$2k) so put your non-discounted prices where the eyeballs with $ are.

Morale of all this story?

Don't sell yourself too cheap. You might be losing much, much more than you think.

4) Another thing I combined to obtain this result is FIXED PRICING. Which I really recommend. At least for a test.

All my domains under 3K inclusive don't longer have a min offer anymore. Min offer is the same as buy now. So this prompts instant decision, either buy it or go away. Gives user no more time to think and move back and forth.

Think this would reduce sales, by not having a min offer?

Think again. Nope. The contrary. I've learned that price is quite flexible, if you set it in the right range at least. And the above fixed price trick does (at least in my case) increase conversions a lot. A lot lot. Probably more than double them, at least by my own experience. (test yours.)

Also I get best results currently by pointing my landers at Afternic, despite that 20% commission. I end up with most $ after fees. (note: Here is an example of Afternic BIN lander via redirect.

I'm not sure why - but I don't think it's the lander. I bet it's the phone there.

Edit: Many experienced sellers here say that landers aren't really that important. I agree, but

Ns5/ns6 landers are good too but I get some infrequent errors on those currently so I kept them on Afternic for the moment.

Overall I think that phone number works. But make your tests too, as everyone's portfolio is different.

5) I've changed all my pricing on SEDO from BIN to make offer and made my min offer equal to the BIN. So basically increased all prices even further.

Since then, Sedo sales started rolling great
and today I'm awaiting yet another 4-fig, already accepted to be paid. I'm also selling domains i had at 3-fig BIN, via 4-fig min offers on Sedo. not just .coms but also .orgs for example.

Why does this happen? Again I think it's not selling too cheap - but I'll let you draw your own conclusions.

Profit note: What the above changed meant for me:

In the last 30 days I've made 400% ROI over all domains and I've basically paid more than half my year in renewals already, so I could spend an extra 5k in new buys with no sweat, on top of the usual 5k monthly. I'm also on track to 6-fig profit this year, and higher 6-fig numbers profits next year. Which I will post about when the time comes. May your sales go great too or even better than this.

In short, it changed everything.


Thanks for reading!

(edited for clarity)
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Thank you for the clearly expressed and valuable comments based on the experience of successfully selling many domain names in the indicated price ranges.

While it might seem contrary to consumer behaviour in other areas, I find it highly believable in domains that up to a point in the lower segment pricing too low can actually hurt sales.

The observation of strictly fixed pricing, seems to be supported by data that SH have shared - having a buy it now price and also a make offer with a significantly different minimum, may just cause inaction on buyer. I still find it personally hard to abandon BIN + Make Offer, but increasingly I am agreeing with DAN, SH and you that it may hurt sales to have the MO option.

Thanks again for one of the most worthwhile reads of the month. Really appreciate the effort you put into this.

Best wishes for continued success.

Bob
 
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Thank you for the clearly expressed and valuable comments based on the experience of successfully selling many domain names in the indicated price ranges.

While it might seem contrary to consumer behaviour in other areas, I find it highly believable in domains that up to a point in the lower segment pricing too low can actually hurt sales.

The observation of strictly fixed pricing, seems to be supported by data that SH have shared - having a buy it now price and also a make offer with a significantly different minimum, may just cause inaction on buyer. I still find it hard to abandon BIN + Make Offer, but increasingly I am agreeing with DAN, SH and you that it may hurt sales to have the MO option.

Thanks again for one of the most worthwhile reads of the month. Really appreciate the effort you put into this.

Best wishes for continued success.

Bob

Thanks Bob! Yes you are confirming my thoughts and I'm thankful for the SH info. Great confirmation overall.

Indeed it takes a bit to write these, but it's worth giving back to the community. This is also applicable to your posts, highly appreciated on NP. But unlike your case studies and stats, I'm just a domainer not making domain industry studies. I just write about what I notice when I think I have something interesting.

The market is always fluid.
 
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Great insight, trying the 299 price on some of my domains. (y)
 
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This is spot on. Great post. Thanks for sharing.

And from my experience, $388 attracts and $450 makes a big enough difference vs slightly higher $499 / $500 with these lower-tier names.

And a big decrease in lowball offers on landing pages this year as you said.
 
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And from my experience, $388 attracts and $450 makes a big enough difference vs slightly higher $499 / $500 with these lower-tier names.

And a big decrease in lowball offers on landing pages this year as you said.

Always glad to learn and try out something new, thanks for sharing.
 
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Well done @twiki πŸ‘
I'm happy for you and always nice to see you sharing openly (y)
 
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Well done @twiki πŸ‘
I'm happy for you and always nice to see you sharing openly (y)

Thank you! Always glad to learn from top investors like you. And to share stuff whenever worth sharing :xf.smile:
 
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Amazing information and thank you for spending your time to share it with us!

I hope we all as a big domainer's family will made a meeting in real life someday!!!
 
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Thanks a lot @twiki for this Awesome thread and wealth of information! I'm sure You really saved a few months of my time in testing. I'm already into it, I had almost all my Domains in Afternic at various price points but left the default Min. offer of $20 on each( I guess that has been affecting my Sales a lot), now have changed all min offers to make them equal to the BIN.
Also the clearance ones most of them I have fixed at 299 for now.
Some Qs:
Do you use descriptions in your Afternic Listings or at other marketplaces?
I have a lot of .xyz acquired recently at auctions(mostly 1 word with 50+ to100+ tlds taken)- Do you think they could be good?
Also do you think the Installment option at DAN/Epik has any effect on the STR?

I wish you all the best and many more sales to keep inspiring us!
 
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Thanks a lot @twiki for this Awesome thread and wealth of information! I'm sure You really saved a few months of my time in testing. I'm already into it, I had almost all my Domains in Afternic at various price points but left the default Min. offer of $20 on each( I guess that has been affecting my Sales a lot), now have changed all min offers to make them equal to the BIN.
Also the clearance ones most of them I have fixed at 299 for now.
Some Qs:
Do you use descriptions in your Afternic Listings or at other marketplaces?
I have a lot of .xyz acquired recently at auctions(mostly 1 word with 50+ to100+ tlds taken)- Do you think they could be good?
Also do you think the Installment option at DAN/Epik has any effect on the STR?

I wish you all the best and many more sales to keep inspiring us!

Glad to be of help.

$20 min does not help you, on the contrary. It tells the buyer you're unsure what you have and this makes the domain less desirable for them too.

Next time you know what you do. I'd suggest a min offer of 50%... 75% of your BIN value.

I don't use description, unfortunately.

I have too few one-word .xyz to tell. Better ask someone else about that. But it depends on the word obviously. Could be good what you have. I'm getting out of xyz btw but that's a personal decision nothing more.

I don't use installment so I cannot tell. None of my buyers ever used installment and been there for years. I disabled it as with the new EU regulations, if you're in the EU it opens a whole legal can of worms.

Good luck
 
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I don't use installment so I cannot tell. None of my buyers ever used installment and been there for years. I disabled it as with the new EU regulations, if you're in the EU it opens a whole legal can of worms.

Interesting, do you possibly have a link to more info on that? Is it a liability thing? Thank you for sharing all of this, much appreciated!
 
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Interesting, do you possibly have a link to more info on that? Is it a liability thing? Thank you for sharing all of this, much appreciated!

I made a whole post about this and it has stirred a lot of discussion:

https://www.namepros.com/threads/se...affects-you-and-is-already-in-effect.1244872/

Anyway, just informational: My own lawyers said that domains are neither goods or service, I'd say it is barely a reservation such as a concert ticket for example. We are going on the interpretation that since they aren't either goods or services, the law doesn't apply to them.

However, if you offer an installment plan, that can be more prone to be identified as a service (payment; lease; whatever) and has significantly less chance to stand up in a court of law.

The law directly affects EU citizens and firms.

If you're outside EU, everything is debatable, though the law applies to everyone regardless of country; the whole thing revolves around whether they can enforce this or not outside the EU. (Edit: meaning, as NP members seem to look at it. But I'd say that important is not enforcement but whether a law applies to you or not; enforcement can still hit you later ... so it's a double edge sword to rely on non-enforceability).

Anyway I'd recommend anyone to get legal advice for this and not just rely on NP information.
 
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Really interesting, I'll dig in. Thank you!
 
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UPDATE:

It appears that my suspicion is confirmed: Afternic no longer effectively lists low priced domains anymore. I've lost a huge sales tier on clearance names.

See quoted below, also linked here: (link: https://www.namepros.com/threads/afternic-strategies.1249523/#post-8374010

It appears that not all afternic partners bother to list cheap domains from afternic channel. Must be this. Indeed, since the space (search results) is limited, it would be more or less logical for the selling registrars to filter out some domains. Cheap afternic domains are still searchable and can be purchased via GoDaddy though.

I found this after changing prices (to $88 or $99 and the like) on domains I elected not to renew. With the original pricing, they were all promptly shown on all registrars and other platforms from afternic partners list I could think of. After the price change, the domains disappeared in some (but not all) search results, including "exact match" searches...
 
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Thanks for this, so you mean anything lower than $299?

Significantly lower. Unknown yet where the threshold is. Zero sales though at $150 or less.
 
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@twiki - I observed you had a few recent sales at $199. Have you dropped your threshold from $299 and has that led to a better STR? Thanks in advance.
 
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@twiki - I observed you had a few recent sales at $199. Have you dropped your threshold from $299 and has that led to a better STR? Thanks in advance.

Can't tell yet, but nothing spectacular. I'm back at $299 while testing a bit on $199 still.

Edit: I suspect it's just a couple buyers at random who were monitoring the price and were happy to take up on this discounted offer. Don't think it improves STR at this point.
 
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Can't tell yet, but nothing spectacular. I'm back at $299 while testing a bit on $199 still.

Edit: I suspect it's just a couple buyers at random who were monitoring the price and were happy to take up on this discounted offer. Don't think it improves STR at this point.
So, what is resulting better at this moment? 199$ or 299$?
 
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So, what is resulting better at this moment? 199$ or 299$?

I would recommend to stick to $299 as this works across all TLDs etc in my tests. There is definitely a decline in sales at $199.

Still $199 is unclear for now; but I think it has to do with lander sales instead, and not due to the Afternic network. This is because I point my landers at Afternic too. With lander traffic, sales of $199 and less are possible but won't be as much as if the network generated them.

I am continuing testing for now, need more data before drawing any final conclusions.

Edit: Also be aware that the summer slump in sales is still here, but should get much better after September 1st.
 
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I would recommend to stick to $299 as this works across all TLDs etc in my tests. There is definitely a decline in sales at $199.

Still $199 is unclear for now; but I think it has to do with lander sales instead, and not due to the Afternic network. This is because I point my landers at Afternic too. With lander traffic, sales of $199 and less are possible but won't be as much as if the network generated them.

I am continuing testing for now, need more data before drawing any final conclusions.

Edit: Also be aware that the summer slump in sales is still here, but should get much better after September 1st.
Keep us update
I really want to know if certain prices like 299$ result better than others and if the difference is significant
 
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There's indeed an update on the $199 price as I've finally figured out what's what. Or at least I believe so. It's working good actually.

Everyone in this thread might want to take a look at my new Afternic clearance pricing post. Hope it helps.
 
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So, 199$ is the way to go?
 
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@twiki I must say this is really enlightening! It provided some clarity to some unanswered questions in my head about pricing "too low."

I won't say I have really been lucky with low prices - seems to be counterproductive actually. Your post gives me something to think on when it comes to pricing going forward. Thanks!
 
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