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Wholesale Price Percentage - what is fair?

Labeled as poll in Domain Buying and Selling Discussion started by MrAcidic, Dec 13, 2018.

Replies:
7
Views:
496

?

What is a fair wholesale price percentage for the buyer ?

Poll closed Dec 23, 2018.
  1. less than 1%

    0 vote(s)
    0.0%
  2. 1%

    1 vote(s)
    9.1%
  3. 2.5%

    2 vote(s)
    18.2%
  4. 5%

    1 vote(s)
    9.1%
  5. 7.5%

    1 vote(s)
    9.1%
  6. 10%

    4 vote(s)
    36.4%
  7. 15%

    0 vote(s)
    0.0%
  8. 20%

    2 vote(s)
    18.2%
  9. 25%

    0 vote(s)
    0.0%
  10. more than 25% (please specify in comments)

    0 vote(s)
    0.0%
Total: 11 vote(s)
  1. MrAcidic

    MrAcidic Upgraded Member Gold Account VIP

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    Everywhere you look on this site it is wholesale this and wholesale that when it comes to pricing, everyone is looking for as much profit as possible and rightly so :xf.smile:


    As a buyer what do you consider a fair percentage to be paying?

    As a seller what are you looking for?

    Does your percentage change depending on the value of the name?

    I can only do one poll in this thread, so have gone for the buyer's perspective, please share your thoughts from the sellers side and if you think the % changes depending on name quality....
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Ategy.com

    Ategy.com NameCult.com Gold Account VIP

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    Short answer: It depends on the domain, what it's evaluated at .. and most importantly, who's evaluation is the baseline.


    Long Answer: The biggest problem with this question is that different domainers valuate their baseline "retail / end user" prices of domains so broadly and diversely different, that 3% for one person is equal 15% for another person .. thus making answers to this question misleadingly irrelevant.

    So effectively someone who sells their domains with a low relative markup will say a higher relative percentage .. and those who markup their domains significantly more will give a lower relative percentage.

    Which means that at the end of the day it's actually wrong and misleading to ask this question without knowing if the domainer answering it is passive or aggressive when it comes to setting their end-user retail pricing.

    (Sorry for bursting your bubble .. lol .. if it were possible to integrate a more complex multi-question poll/questionaire this would make for a more interesting and relevant discussion)



    The only time when this is not the case is when it comes to liquid domains .. but with liquid domains the wholesale prices are already essentially set by definition.

    Ironically, with purchase prices set at a liquid baseline, you could accurately get a percentage idea by asking the reverse question of how much do domainers markup domains they buy at liquid prices. However .. there again, there are other (although less significant) differences and nuances that come into play .. and even if still relatively unprecise, answers would only hold true for liquid domains, which I think most domainers actually don't invest in.
     
    Last edited: Dec 13, 2018
  3. Asfas1000

    Asfas1000 Top Member VIP

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  4. MrAcidic

    MrAcidic Upgraded Member Gold Account VIP

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    Great post!

    Thanks - my bubble is titanium based so don't worry about it bursting. I put the question out there and you answered it brilliantly.
     
  5. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    It depends. Ategy.com summed it up nicely.

    Brad
     
  6. ~ The 34 Year Buzz!!

    ~ The 34 Year Buzz!! Top Member VIP ★★★★★★★★★★

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    Simplify (?), If it was possible to determine the retail sale will be $100 (for example), then what is a "fair price" for the wholesale seller to receive?
     
  7. MrAcidic

    MrAcidic Upgraded Member Gold Account VIP

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    The point is I wanted to see if peoples percentages changed depending on the value of the name as well as peoples thoughts on wholesale pricing from a buyer and seller perspective - in hindsight (wonderful thing that it is :xf.smile: ) the question/s are not suitable for a poll....

    I am by nature not a statistician/pollster and will just stick to the basics in future - ask a question and hope for a reply :xf.grin:

    Lucky for me and others, we got a great answer above!!
     
  8. wormfood

    wormfood ---- Gold Account VIP

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    Generally, the better the domain (higher chance of selling), the higher the percentage.

    You could buy a bunch of mediocre "brandables" here for $5-$25 each and list them all for low four figures, as many are at brandable marketplaces.
    so the percentage might be about 0.75% ($15 / $2000)
    If you pay $50 each, they'd better be three times as good, or you're going to have to list them at higher prices. but there's a reasonable limit to how high you can list random brandables and still expect a good sell-through rate.. so the quality is more important.

    It's almost impossible to get a top-tier domain for 1%, unless you come across people who don't know the value or are desperate to sell.
    If you buy a nice .com for $10,000, you're probably not gonna sell it for anywhere near 1 million.. the wholesale percentage might be betewen 10 and 50%, assuming it's actually a good domain worth five figures.
    Why would the seller give up a potential six figure domain for 10k?

    If you consider the popular auction sites, there are other factors.
    You could be competing with people who don't have a profitable business model and are just bidding up everything they like to high prices.
    You could be competing with people who really like the domain, so they'll pay a lot "wholesale," even if they're not sure they can make a profit anytime soon.
    I suppose there are people who are prepared to hold every domain they buy for 10-20 years, so they crush you at the outset to secure a good long-term investment.
    You could even be bidding against end users.
     

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