advice Stop teaching me how to price my names

[comati]

For all the noobies out there that don't understand pricing.

It's OK, no matter for how long you are doing this, some people will blow your mind with their prices. That happens for the most part because you don't know what business/financial model they have and in what particular situation they are. Is not and exact science, you just have to know how much is worth that name to you if you buy, and what's your magic number if you are selling.

Some people flip every name they buy (even at a loss) and some people sell 0.1 % of their portfolio every year and want a huge ROI. Some people have (or have access to) capital and some people need money badly, some can wait and some can't.

I've noticed that lately every single one of the wanna-be investors that contacts me wants a 80-90% discount off the retail price because he is a “fellow domainer” and he “knows” how this things works and he wants to pay "wholesale price".

That's not going to happen no matter who you are and what you think you know. You don't know how many names I own, how many I sell, what kind of expenses I have and … stop saying wholesale when you want to buy just one name.

And even if, by some chance, you gather all that data and you figure out my financial model you still have nothing because is my view of the future that drives that model, and you can't possibly know what's in my head.

How much I paid for it in the first place shouldn't even come up. If I take risks with my money I should get compensated. How you can't understand this simple truth and still call yourself an investor.

You are not a domainer just because you watch domain sherpa. Stop thinking that watching and doing are the same thing or that entertainment is education.

 

[Sophia Alice]

Calm down buddy !!! Why so much frustration

 

[HotKey]

Calm down buddy !!! Why so much frustration

He explained it there:

I've noticed that lately every single one of the wanna-be investors that contacts me wants a 80-90% discount off the retail price because he is a “fellow domainer” and he “knows” how this things works and he wants to pay "wholesale price".

How much I paid for it in the first place shouldn't even come up. If I take risks with my money I should get compensated. How you can't understand this simple truth and still call yourself an investor.

Everyone wants a deal, or thinks they're entitled to one. Guess it can get aggravating..

 

[hookbox]

Maybe they see your auctions selling names for 3 bucks each and figure you sell all your names cheap. When you put that type of pricing on your names you are guaranteed to get all the lowball offers from other domainers.

https://www.namepros.com/threads/3-dot-coms-for-10-usd-qeetoo-com.998965/

 

[comati]

Calm down buddy !!! Why so much frustration

I'm not frustrated, but I do have a quote ""We see people and things not as they are, but as we are".

When you put that type of pricing on your names you are guaranteed to get all the lowball offers from other domainers.

It is a little bit like walking in a apple store and demanding a mackbook for 99 euro because that's the price of the refurbished apple tv in the window, isn't it?

 

[Lox]

refurbished apple tv in the window

Where Windows users will notice the window and refurbished Apple TV.

 

[imadoer]

You are not a domainer just because you watch domain sherpa. Stop thinking that watching and doing are the same thing or that entertainment is education.

This part is funny

 

[Ategy]

lol .. I understand how you can be frustrated ... however it doesn't hurt to ask .. some people do sell cheaper than others .. and the only way for them to find out is by asking you!

btw .. it seems they might have pricing issues .. I suggest you ask them to get the domains from they want appraised .. but not just by any estimator or automated bot .. but one of 3 different human evaluation services ...

 

[Kuffy]

I wish someone would teach me how to price names - I always seem to get it wrong in one direction or the other. Sideways usually, as I never seem to hear again from potential buyers when I counter their offer of $10.

 

[ikhub]

I went through all that and guess what helped me? A glass of cold water. Drink one and just laugh at them.

 

[DomainVP]

- del -

 

[frank-germany]

I wish someone would teach me how to price names - I always seem to get it wrong in one direction or the other. Sideways usually, as I never seem to hear again from potential buyers when I counter their offer of $10.

just ask for 10 times more then you price them

 

[dhyane]

Unlike physical properties, it is not possible to fix a right price for domains. When some one inquires about a domain, automatically its value increases. It is our wish to fix any price. Buyer cannot fix price for domains that we own.

 

[comati]

This part is funny

i said something similar to my girlfriend once, about cooking shows, and she was not amused

Buyer cannot fix price for domains that we own.

and still many domainers insist that the buyer should make an offer and refuse to put a BIN price on their names. it gives you a leg up in negotiation if the buyer is legit but the downside is you empower a**holes to low ball offer you into oblivion

 

[imc]

I'm not frustrated, but I do have a quote ""We see people and things not as they are, but as we are".

Sorry, I could not help myself. So, when you see 'shit' on the sidewalk, what do you see yourself as?

 

[1Darko]

For all the noobies out there that don't understand pricing.

It's OK, no matter for how long you are doing this, some people will blow your mind with their prices. That happens for the most part because you don't know what business/financial model they have and in what particular situation they are. Is not and exact science, you just have to know how much is worth that name to you if you buy, and what's your magic number if you are selling.

Some people flip every name they buy (even at a loss) and some people sell 0.1 % of their portfolio every year and want a huge ROI. Some people have (or have access to) capital and some people need money badly, some can wait and some can't.

I've noticed that lately every single one of the wanna-be investors that contacts me wants a 80-90% discount off the retail price because he is a “fellow domainer” and he “knows” how this things works and he wants to pay "wholesale price".

That's not going to happen no matter who you are and what you think you know. You don't know how many names I own, how many I sell, what kind of expenses I have and … stop saying wholesale when you want to buy just one name.

And even if, by some chance, you gather all that data and you figure out my financial model you still have nothing because is my view of the future that drives that model, and you can't possibly know what's in my head.

How much I paid for it in the first place shouldn't even come up. If I take risks with my money I should get compensated. How you can't understand this simple truth and still call yourself an investor.

You are not a domainer just because you watch domain sherpa. Stop thinking that watching and doing are the same thing or that entertainment is education.

My advice is very simple. Don't be angry because a buyer wants a good price. Instead make the best out of it. Outside of the domain world I'm working in retail sales for over than 20 years and it takes a lot of negotiation skills and "endless" communication to close a deal. A lesson I have learned very soon in my career - don't argue or fight with the potencial buyer! Often the price is not the biggest factor why a deal is not happening. You have to figure out what the buyer really needs and sell to him that.To figure that out you have to listen what he is saying. You should be happy that a potential buyer is even contacting you. Businesses around the world are spending huge advertising money to get people into their stores to only start the conversation with the buyer. The outcome is often like "no sales happens".
From my experience the figures are roughly like:
100 cold contacts (you don't know the potential buyer) from seller side converts to 1 sales. (in domaining you could say outbound activities)

10 customer inquieries converts to 1 sales (in domaining you could say inbound activities)

and inbetween all of that a lot of communication and talking.

At the end of the day if a potential buyer doesn't buy today he could become your customer tomorrow!

People like to trade with people who have positive energy. Therefor it makes no sense to be frustrated and negative. Be positive and happy

 

[Simdo]

just ask for 10 times more then you price them

I too seem to not hear from perspective buyers after I tell them my price. I factor in the industry my domain is targeting, the amt of interest being generated online by search volumes and the cost of the goods being sold by the market the domain name caters too. I get the feeling buyers think prices should be dirt cheap.

 

[Simdo]

My advice is very simple. Don't be angry because a buyer wants a good price. Instead make the best out of it. Outside of the domain world I'm working in retail sales for over than 20 years and it takes a lot of negotiation skills and "endless" communication to close a deal. A lesson I have learned very soon in my career - don't argue or fight with the potencial buyer! Often the price is not the biggest factor why a deal is not happening. You have to figure out what the buyer really needs and sell to him that.To figure that out you have to listen what he is saying. You should be happy that a potential buyer is even contacting you. Businesses around the world are spending huge advertising money to get people into their stores to only start the conversation with the buyer. The outcome is often like "no sales happens".
From my experience the figures are roughly like:
100 cold contacts (you don't know the potential buyer) from seller side converts to 1 sales. (in domaining you could say outbound activities)

10 customer inquieries converts to 1 sales (in domaining you could say inbound activities)

and inbetween all of that a lot of communication and talking.

At the end of the day if a potential buyer doesn't buy today he could become your customer tomorrow!

People like to trade with people who have positive energy. Therefor it makes no sense to be frustrated and negative. Be positive and happy

I like your views on this. I however have encountered some rude buyers who think that my prices seem as if I am holding them to ransom even though I tell them my prices are very negotiable. I am catering to persons in car sales industry and it puzzles me that they can ask a decent price for their goods and I cannot. Do they look at domain sales as a cheap industry?

 

[SBS66]

He explained it there:

Everyone wants a deal, or thinks they're entitled to one. Guess it can get aggravating..

IMO, an investor is entitled to the deal they know how to negotiate, not the one they beg for.

 

[Casey L]

yikes, nothing wrong with trying to get a good deal, but clearly some take offense to an offer they don't like.

say "no thanks", grow the f* up, and move on

 

[DnEbook]

If a newbie comes here and see's the pricing they would tend to think domains can be purchased for cheap going by some of the auctions

 

[deez007]

Lol..that was an entertaining read Thanks....

 

[1Darko]

I like your views on this. I however have encountered some rude buyers who think that my prices seem as if I am holding them to ransom even though I tell them my prices are very negotiable. I am catering to persons in car sales industry and it puzzles me that they can ask a decent price for their goods and I cannot. Do they look at domain sales as a cheap industry?

I would say that if a buyer is arguing with you about the price he is interested into the domain. This is definitely a potencial buyer. The best you can do is to present your domain in a positive way and explain why it is worth the money you're asking for it. If it is a .com domain the second best extension for the buyer would probably be .net or .org. If the buyer is still insisting that the price is to high I have learned to give an example that the domain is free to reg in the .horse extension,so that the buyer can save a lot of money. You will see the reaction of the buyer