advice Tip: Don't price yourself out of a sale

[william]

Pricing your domain too low can cost you a sale.

I know nearly all of you know that pricing a domain too high can lose you a sale. But what about the opposite? Did you know that pricing a domain too low can cost you a sale? I'm not talking about losing a portion of the money because you could've sold a name for more. I'm talking about not selling the name at all.

When you're pricing the name, consider not only the quality of the name, the market, but also the industry and end-user you are targeting. You may have an industry specific, super niche name, and you may not have a lot of buyers in that market. Your instinct tells you to lower the price, so at least you can get something. But in some cases, that instinct can cost you a sale.

If the industry or end-user that you are targeting has bigger budgets, they will never see your name that is priced under $5K. They will likely hire someone to find them a name, or in the rare case they do look for themselves, they will set the filters to their budget. Which will likely exceed your set price. You'll be stuck in a no-man's land, where most people aren't interested in your name for a few hundred, or few thousand, and the people who may be - may not see your name all together.

So don't price yourself out of a sale.

Have a good weekend!

 

[jhm]

Sound advice @william

 

[NYJimbo]

If the industry or end-user that you are targeting has bigger budgets, they will never see your name that is priced under $5K. They will likely hire someone to find them a name, or in the rare case they do look for themselves, they will set the filters to their budget.

If a buyer is looking for YOUR name, they will buy it, even if you sell it for $99.

I don't know where you are getting your info from, but it is wrong. It might apply to brandables, but not other names.

 

[william]

If a buyer is looking for YOUR name, they will buy it, even if you sell it for $99.

I don't know where you are getting your info from, but it is wrong. It might apply to brandables, but not other names.

It's not really looking, if they know the exact name they want, is it? This refers to buyers, in a specific industry, with a higher budget, who are looking for a name in general. If you set your price to $99, the buyer may never see that name because they are likely to 1) set price filters within their budget (which will certainly exceed it), 2) if they come across the name, they may perceive it as low value because of the price.

You don't have to use domains as an example to understand the thinking process. Think of any other product. If you have a big budget, you typically want a higher quality product. So are you going to walk in a store and go to the discount section?

 

[PurpleMan]

If a buyer is looking for YOUR name, they will buy it, even if you sell it for $99.

I don't know where you are getting your info from, but it is wrong. It might apply to brandables, but not other names.

I don't entirely agree with you but I think you do have a point at the bolded.

 

[jiy k]

Are there any examples where a million dollar business entity has bough a domain for $100 and the domain is now a full fledged website. Thanks.

 

[AEProgram]

Are there any examples where a million dollar business entity has bough a domain for $100 and the domain is now a full fledged website. Thanks.

Most million dollar businesses build their site on a handreg.

I had an idea, imagine you have a name for $6k, I'd love a lander that says

"This price for this domain increases daily until it reaches $75,000. We prefer you wait, but it's up to you"

Most good names I see for sale are underpriced. Domainers are the most generous people. If we were as greedy as many other people in tech, no good domain would sell for under 10 million and companies would be trained by now that it's the cost of doing business just like they know a super bowl commercial is 3+ million.

We destroy the value of a domain by asking low prices for great names. We messed it up for ourselves really good.

Rick Schwartz is one of the few heroes in this industry because he demands fair prices.

 

[StartupNames]

Good point!

 

[ivey]

If a buyer is looking for YOUR name, they will buy it, even if you sell it for $99.

I don't know where you are getting your info from, but it is wrong. It might apply to brandables, but not other names.

You’re assuming a buyer knows the exact name they want. That’s not always the case. If that was the case then marketplaces like SquadHelp wouldn’t prosper. Many endusers also go after keywords and want to see multiple names that fit to choose from. And they do have a budget they follow. So I think it’s sound advice.