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Wanna sell domains ? Price them right !

Discussion in 'General Domain Discussion' started by Kate, Mar 17, 2017.

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  1. Kate

    Kate Thinking inside the Box™ VIP ★★★★★★★★★★

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    Wanna sell domains ? Price them right !

    If you're selling Toyotas you don't price them like Ferraris.

    The purpose of this post is not to teach you what makes a domain valuable, not even how to appraise domains. This post is about achieving optimal pricing for your domain names.

    For the purpose of discussion assume that you own a domain that is for sale, that is decent enough to arouse interest from an end user. Congratulations. But if it is overpriced, it is not likely to sell. Sometimes, an end user will want your domain and nothing else, but often they already have a short list of alternative domains, even as a second choice. That means they can bypass you and they will not buy at any price.

    If I want to buy a semi-generic domain ie cooldomain but it's too expensive then I can look into nicedomain, topdomain, bestdomain etc. These names are more or less equal, but the pricing could vary a lot.
    If I want a cool brandable like baba.com but can't have it then I can try something else, bibi, dada, anything... even a slightly longer domain. I can still have a cool domain for $2000 instead of $1M.

    If myself buy domain names for future projects on a regular basis (I like stockpiling them). Even when I buy domain names for resale, I am prepared to keep them and ultimately use them. We know that turnover is low and many names will obviously remain unsold for a very long time.

    Before I buy a domain, I do what an end user would do: I will first do brain storming, compile a list of possible alternatives, try synonyms, using a thesaurus etc. You should usually be able to produce at least a dozen alternative names, some of which might be free to register -> the story ends here.

    Then the next step is to check each domain, some are used, some are unused, some are listed for sale, some are priced at a BIN so it's easy. Sometimes, the owner will give you a quote if you ask. Often you won't get a price but will asked to make your best offer. Anyway, the end user can now compare, choose among different options and pick the least expensive name that is good enough. Yep, it's like a sealed-bid auction (or a private tender).

    For example if you're selling xxxx.net and slap a price tag of $3000 on it, while xxxx.com is listed elsewhere with a BIN of $2495, guess which name an end user is going to buy ? Not yours.

    Obviously this applies to new extensions too ! If you own cliparts.PHOTO, then you need to be aware that the same keyword could do equally well in .PHOTOS or .PHOTOGRAPHY or . PICS or .PICTURES... Yes these TLDs all exist !

    Or maybe you're selling a singular name but the plural is unregistered and will do fine...

    Where am I getting at ?

    This: as a domain seller you need to perform the same kind of research an end user would do. Try to identify the most obvious competitors for your domain naùes.
    That doesn't mean that you must align your prices to your competition, but you have to be aware that buyers have options, and they have more leverage than you think.
    Being overpriced is relative too. Overpriced is when you're asking more than your competitors for a comparable product.

    Finally, I repeat myself, but it's obvious that an end user has no incentive to buy your domain name, if he can get another domain of similar quality for regfee. Even if the regfee domain is not as good as yours, the price gap can still be big enough to justify going the regfee route.
     
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  2. alcy

    alcy Active Member VIP

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    many people overprice their domains
    thus better option for most may well be to leave them makeoffer only
     
  3. Lysted

    Lysted Lysted.com Domains Buy - Sell - Connect - Manage Business Account

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    @Kate, good advice on how to price the domains. We have to look at one more factor, that is 'likability' of the name that really plays a big role in domain buying process. If the buyer likes a name, they like a name and sometimes they are willing to go extra miles (bucks) to get that name - the fact that plays in your favor.

    Considering domains do not have a MSRP, in short a reasoning/basis behind valuation, it is all comparables, so it is a good idea to be realistic while pricing the domain. Just wanted to mention about the 'snippets' we see often, such and such (crappy) name sold for unrealistic prices and the new comers/ and professionals alike get swayed by such.

    Another thing would recommend for domain sellers is to have monthly goal of sales. Even if you have to go down on price sometimes to meet monthly goals, that should be acceptable as well. That approach is more applicable for domainers who are trying to have 'extra income'. They should not be comparing themselves to veterans who have been around long long time ago (when we were starting to use email to be exact). Even if they do not sell a name in a year, they will still be fine. So they take the 'risk' of quoting ridiculous prices, sometimes it works and most of the times it does not.

    Besides prices, many other things go into a successful sale. Few being, responsiveness, sincerity, bargaining skills, assertiveness - basically how well you portray yourself. This is particularly important because most of the buyers do not know how to buy a domain, they do not know the 'real value of the domain' (which technically does not exist). They are not at all comfortable in buying some 'digital' asset over the internet without even looking at it or talking to the person. Always put your best foot forward to instill confidence in the buyer. Many buyers would pay extra money just to buy it through a broker rather than going through an individual seller.

    Cannot say experience of selling the domain counts a lot, because no two domains are alike and no two buyers are alike. One strategy may work with another but will just blow up on face for another. So play safe ('middle ground') and always keep your goals on mind.

    Best.
     
  4. FNet

    FNet Established Member

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    @Kate, well said. But common logic isn t very common after all.
     
  5. DGMDomains

    DGMDomains Established Member

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    Trueeeee; at the end of the day. A profit is a profit. At least you gain than losing.
     
  6. Bullock

    Bullock Established Member

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    The Latins said repetita iuvant :xf.wink:
     
  7. poweredbyme

    poweredbyme Established Member

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    I disagree. People prefer to buy high priced products. Because cheap products are connected with low quality in human mind and this is usually correct prejudice. If 2 products are similar, people want to buy the one that is more expensive as they think the cheap one is cheap because it's crap.

    People want to buy Ferrari more than Toyota and most people, including the sellers, don't know how to price domains. Domain end users recognize the Ferraris from the price. Because they usually see only the domain name and its price, no other info about the domain. You can't sell overpriced Toyota. That's correct. Because cars are not unique, buyers are given too much about info about the cars. Each domain is unique and has its own unique buyer. If a domain does not sell, price is usually not the first reason.
     
    Last edited: Mar 20, 2017
  8. doofer

    doofer Established Member

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    I've just significantly reduced the price of most of my domains if anyone is interested !? :xf.smile:

    see @discerningdmain
     
  9. doubleU

    doubleU Top Member VIP ★★★★★★★★★★

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    Excellent post, I concur with all that you have mentioned ...


    It's so important to get pricing right otherwise you could be failing from day one !
     
    Last edited: Mar 20, 2017
  10. frank-germany

    frank-germany Business Member Business Account VIP

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    forever young?
     
  11. frank-germany

    frank-germany Business Member Business Account VIP

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    I bet you won't sell more
     
  12. frank-germany

    frank-germany Business Member Business Account VIP

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    the right price can be a very high price
    and you agree on a negotiation that makes the buyer feel like a winner

    .. its a complex game
    with a lot of variants
    most unknown
     
  13. frank-germany

    frank-germany Business Member Business Account VIP

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    but thats what its all about
     
  14. frank-germany

    frank-germany Business Member Business Account VIP

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    .. just a hint
    you can't be wrong with $30 USD for a handreg domain
     
  15. Bullock

    Bullock Established Member

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    Are you joking? :xf.embarrassed:


    The Latin expression "ripetita iuvant" stands for, literally:

    - repeat (sth) help

    or, also

    - say again (sth) help


    Regards
     
  16. frank-germany

    frank-germany Business Member Business Account VIP

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    yeah I guess I was close
     
    Last edited: Mar 25, 2017
  17. dtagr

    dtagr Business Member Business Account

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    I don't usually have a sale price in mind (though I usually have a range). I like the fluid nature of the negotiations. My responsibility as the seller is to discover what the name is worth to the buyer, and of course every buyer is unique - with different motivations, different wallet densities, different goals (enduser or reseller) etc.

    I've been experimenting with "comparables" on some of my landing pages. Had a decrease in pointless how much offers, and a slight increase in "lol's".
     
  18. frank-germany

    frank-germany Business Member Business Account VIP

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    100% agree

    and think of terms like
    "the wrong buyer"
     
  19. frank-germany

    frank-germany Business Member Business Account VIP

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  20. platey

    platey Active Member VIP

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    If you turn down enough offers the domain effectively prices itself

    Eg more than the last offer until an offer becomes viable to accept

    Allegedly

    But what do I know
     
  21. 1Darko

    1Darko Established Member

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    or check this one - I have recently dropped it:
    http:/CigaretteElectro.com
     
  22. Bullock

    Bullock Established Member

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    Yes, I generally agree with your point.

    I'd said that my duty as owner is to assess objectively the value of my domain. As a seller my ability is to discover the deep/hidden potential of my prospect.

    Then, I decide the best way how to make a successful negotiation. But I know this is pure theory... :cat:
     
  23. frank-germany

    frank-germany Business Member Business Account VIP

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    oops

    I can feel your pain,
    but next time you drop something
    ... let me know !!! ;)
     
  24. frank-germany

    frank-germany Business Member Business Account VIP

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    allways keep in mind:

    if we all add 2 zeros to our prices
    we all would earn 100 times more
     
  25. 1Darko

    1Darko Established Member

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    I will :)
     

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