- Impact
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You might thing you're setting your domain prices, but you're wrong.
You don't. Your buyer does.
Even if you have a ton of experience and you know already how to price each domain (congrats!) - you do that based on feedback of past sales and information you got over the years.
Now this part so far is obvious, but here's a little trick I used to scale my domaining fast.
I'm always testing prices. A lot. Pushing up and down prices on thousands of names. And very carefully analyzing the results.
While it is a bit of hard work (not too much actually) I really enjoy it for the benefits it provides.
Each portfolio is different. Also sales strategy, venues etc are different. Due to this, nobody is gonna tell you correctly how you should price your names. So what do you do?
1) Use Estibot / Godaddy appraisal? (100% dumb)
2) Ask for an appraisal on NP? (better, but anyway this is something you can't really do for each and every name...)
3) Take a number out of your hat? ( MOST COMMON OPTION ... unfortunately)
One of the things I used to grow fast my domaining was testing testing testing. I know that the better information I have, the more money I make. And that information is NOT in my head, not on NP, it is in my buyers' heads. And I cannot make that information transfer to me, unless I can get the price in a range where it convinces the buyer to trigger the buy button or make and offer.
The more I test, the more sales I got, the more information I got, then the better the overall process was. Rinse and repeat.
I change prices each 2 weeks at least. Hundreds, sometimes thousands of names. By testing aggressively I get to learn a lot as to how to price them but also about hundreds of niches, sometimes even more obscure ones. There's money to be made everywhere. I even used to change prices each few days at some point (but that's likely a bit too fast for any proper conclusions though it got me some insight too).
Why this works: The biggest success factor in domaining is, in my opinion, not the amount you get for your domains (price) but the sale ratio. The more precise you can be with your prices, the better the sale ratio, and better the profit.
I'm way over average in ratio, something that has been already seen in the lots of sales I report. Like double or triple the usual sales ratio at least. Reason for all that that the same - I test pricing a lot.
I want to sell each and every name before expiry and make some profit, because there's plenty of fish out there. There's far more good domains to buy than capital you might have to buy them all.
And the result of significant testing? Well sometimes you're going to sell less, cause you just set the price too high. Or you're going to sell more names but perhaps too cheap, cause you have just set it too low. Also often setting the price too low is decreasing sale ratio as the price suggest the buyer this actually might e a crappy name cause it's too cheap.
But the end result is, YOU LEARN A LOT about your own names. Even one month spent in testing is going to bring you far more revenue than 1/12 of your overall sales. You might even double them. By sticking to a price pulled out of the hat you're leaving a lot of meat on the table. Worth also mentioning that since domaining changes each year, your prices might also be obsolete by now. It's a fluid market, so make sure opportunity doesn't pass you by.
End note, this is far more important in the lower price range (under $2k and especially xxx range) as buyer price sensitivity is very high in this range. With the correct pricing set in these ranges you can make a very good business even with xxx range names - by simply matching the name with a price in the zone your end buyer expects or hopes it to be - the sweet spot where your buyer will feel compelled to reach for their credit card.
Good luck selling!
You don't. Your buyer does.
Even if you have a ton of experience and you know already how to price each domain (congrats!) - you do that based on feedback of past sales and information you got over the years.
Now this part so far is obvious, but here's a little trick I used to scale my domaining fast.
I'm always testing prices. A lot. Pushing up and down prices on thousands of names. And very carefully analyzing the results.
While it is a bit of hard work (not too much actually) I really enjoy it for the benefits it provides.
Each portfolio is different. Also sales strategy, venues etc are different. Due to this, nobody is gonna tell you correctly how you should price your names. So what do you do?
1) Use Estibot / Godaddy appraisal? (100% dumb)
2) Ask for an appraisal on NP? (better, but anyway this is something you can't really do for each and every name...)
3) Take a number out of your hat? ( MOST COMMON OPTION ... unfortunately)
One of the things I used to grow fast my domaining was testing testing testing. I know that the better information I have, the more money I make. And that information is NOT in my head, not on NP, it is in my buyers' heads. And I cannot make that information transfer to me, unless I can get the price in a range where it convinces the buyer to trigger the buy button or make and offer.
The more I test, the more sales I got, the more information I got, then the better the overall process was. Rinse and repeat.
I change prices each 2 weeks at least. Hundreds, sometimes thousands of names. By testing aggressively I get to learn a lot as to how to price them but also about hundreds of niches, sometimes even more obscure ones. There's money to be made everywhere. I even used to change prices each few days at some point (but that's likely a bit too fast for any proper conclusions though it got me some insight too).
Why this works: The biggest success factor in domaining is, in my opinion, not the amount you get for your domains (price) but the sale ratio. The more precise you can be with your prices, the better the sale ratio, and better the profit.
I'm way over average in ratio, something that has been already seen in the lots of sales I report. Like double or triple the usual sales ratio at least. Reason for all that that the same - I test pricing a lot.
I want to sell each and every name before expiry and make some profit, because there's plenty of fish out there. There's far more good domains to buy than capital you might have to buy them all.
And the result of significant testing? Well sometimes you're going to sell less, cause you just set the price too high. Or you're going to sell more names but perhaps too cheap, cause you have just set it too low. Also often setting the price too low is decreasing sale ratio as the price suggest the buyer this actually might e a crappy name cause it's too cheap.
But the end result is, YOU LEARN A LOT about your own names. Even one month spent in testing is going to bring you far more revenue than 1/12 of your overall sales. You might even double them. By sticking to a price pulled out of the hat you're leaving a lot of meat on the table. Worth also mentioning that since domaining changes each year, your prices might also be obsolete by now. It's a fluid market, so make sure opportunity doesn't pass you by.
End note, this is far more important in the lower price range (under $2k and especially xxx range) as buyer price sensitivity is very high in this range. With the correct pricing set in these ranges you can make a very good business even with xxx range names - by simply matching the name with a price in the zone your end buyer expects or hopes it to be - the sweet spot where your buyer will feel compelled to reach for their credit card.
Good luck selling!
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2 interesting threads. Thanks for the share.
