What's behind a 5-figure sale?

[bulga]

Why is it so difficult to get domain sales above 5~6K?
Is there any secret behind 5-figure sales, that the rest of us are ignoring?

I would like to hear from domainers who have closed deals on the 5-figure range.

I know many will shout that it is just a matter of the right domain and the right buyer willing to pay for it. But is it just that passive? Or...
Are there any tricks and strategies that can bring a deal, that would normally close at 3~5K, to a 20-30K level?
E.g.: selling arguments, bluffing, auctions, contacting other potential buyers (competitors), usage of an experienced broker, showing domain as part of a business, any ideas?
Or do you just stick to a higher price and don't get below it?

I consider 4 categories of buyers:
1) resellers and domain investors
2) individuals for personal usage and blogs
3) entrepreneurs, startup'ers, developers, and people launching their ventures
4) established businesses and corporations

What is my situation (mainly .com brandable's, short semi-defining, slogan's, call to action's, 4/5-letter names/surnames)
1) I don't care
2) about 10% of my sales, usually in 0.8~1.5K, doesn't make sense them pay more - not my main focus, only sell the ones I think will get hard to sell for businesses (3) and (4)
3) about 60% of my sales, usually with a tight budget 1~5K and paying by CC - I think only an easy financing/lease-to-own model would make it easier sales above the 5K mark.
4) about 30% of my sales, (i) hard to know who they are during negotiation, they lie as hell (presenting as students, research projects, non-profit associations, bloggers, whatever), often negotiated via a web design or branding agency; (ii) lack of sensibility for the value and importance of a domain.

Please, share your stories and experiences on closing or trying higher-end sales.

 

[biggie]

Is there any secret behind 5-figure sales, that the rest of us are ignoring?

:talk:

if you don't ask for 5 figures.....you'll never get it.


that's no secret, but since many don't know what to ask for their domain names as is.....that same group may never get a five figure sale.


other hurdles or difficulties may lie in patience, or lack of.

sometimes you gotta wait for it.


but easiest way to sell a name for 5 figs, is to buy one in that range, then resell it for slightly more.




imo...

 

[Archangel]

There is no secret: if you ask for 5 figures and get it, then ya get it. Likewise, no.

However, remember that the more zeros you add, the harder it becomes to afford the gamble. You'd have better chances of 10 $1,000 sales than 1 $10,000 sale. It's simply a numbers thing

 

[lincolndsp]

buy a domain in auction for $10k then resell it for five figures without any secrets

 

[Havela]

buy a domain in auction for $10k then resell it for five figures without any secrets

I would like to know how many people do that (buy a domain at auction for $10k) and then discover that they are unable to sell it for more than $8k. For understandable reasons people never post those stories, but I bet they are out there by the truckloads.

Buying an expensive domain is no guarantee that you will make profit. :imho:

 

[lincolndsp]

I would like to know how many people do that (buy a domain at auction for $10k) and then discover that they are unable to sell it for more than $8k. For understandable reasons people never post those stories, but I bet they are out there by the truckloads.

Buying an expensive domain is no guarantee that you will make profit. :imho:

compare it to those who register a domain for $10 and then discover they cannot sell it for $100 let alone five figures. which group is bigger is the answer to this secret of a five figure sale

 

[Havela]

compare it to those who register a domain for $10 and then discover they cannot sell it for $100 let alone five figures. which group is bigger

Well, I assume the $10 group is larger, because I think there are many, many more people buying hand reg domains than buying $10k domains. But the relative success rate of each group? We don't have any statistics of that. People keep their failures to themselves - that's human nature.

is the answer to this secret of a five figure sale

Having said that, I do agree that a five figure sale is most likely based on either a long waiting period or an aftermarket purchase.

What I disagree with (which really has nothing to do with this thread in particular, as I see this repeated frequently everywhere on Namepros), is the idea that buying an expensive domain is somehow a guarantee for profit:

Time and time again fresh-out-of-bed newbies are being advised that they should rather buy one $500 domain on the aftermarket than 50 hand regs. I think that is haphazard advice. A newbie might as well buy a worthless domain as a valuable domain for $500. In fact, I bet it was a newbie trusting this advice who paid $3xx for my 20+ letter .info which I hand regged for $0.18 last year. I see it is still parked. There are plenty worthless domains priced at high figures on the aftermarket. All newbies overprice their domains. It is absolutely no problem finding completely worthless domains for $x,xxx or even $xxx,xxx. Until a person has a basic understanding of domain value he or she should not buy an expensive domain. And it is difficult to get an understanding of domain value until you have some experience with sales. Better get that experience with cheap domains than expensive ones.:imho:

 

[lincolndsp]

^^ yes, true, i had this in mind so i mentioned buy in the auction to represent that at least several people were willing to buy it for a few bids below
the secret is simple get as many quality domains as you can and then play Schilling style if you can

 

[biggie]

I would like to know how many people do that (buy a domain at auction for $10k) and then discover that they are unable to sell it for more than $8k. For understandable reasons people never post those stories, but I bet they are out there by the truckloads.

:talk:

those stories are told, but you have to know "acquisition cost versus resale price", to know truth.

some high profile sales fall in this category, but that sellers' volume, may consume those rare 'losses'.


similar scenario:

if I drop a name that cost more than reg fee, but another sale or ppc income makes up for that loss on that dropped domain.


imo...