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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.
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.
