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Why don't you sell your domains for cheap?

Labeled as debate in Domain Buying and Selling Discussion, started by blogspotter, Sep 7, 2020

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3
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476

  1. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    I am not talking about the ultra premium single words and category killers that are always liquid and you can always.

    I am talking about your portfolio minus the liquid assets.
    I maybe wrong. I just want to understand the process better.

    Most the assumptions around sell-through rate is that if your sell through rate is 2%, and you sell a domain for 10x the purchase price, you won't make a profit.
    Meaning you have 100 domains bought $1 @ an acquisition cost of 100
    If you sell 2 domains at 10x, you only sold $20

    But here is what I think is wrong with that mindset.
    You have 100 domain and you accept a 2% sell through because you don't which 2% will sell.
    Meaning even if you sold 1 domain in week 0, that doesn't mean you only have 1 domains left out of 99 that will sell.
    In order words, every domain out of the 100 have an equal chance of getting sold. If you know better, then, you are carrying dead weight.

    It is good to use the sell through % to price your domains, but I think it is not a very good idea to hold off a domain from an offer simply because it is below your calculated pricing based on sell through. This of course exclude your well researched domains which are semi premium, with a targeted buyer who might raise another round of funding etc.
    I am talking about that domains which is think is as good as any of your 100 domains in the portfolio.

    Every domain has one buyer. Even if there are more, they aren't going on a Bidding war, and if they do it is a different matter.

    So I think turning down an offer of 2000 when you priced it at 3000 simply because it is not 60X of your buying price seem counter productive.
    I am not saying I am right. This is just something I have been thinking a while when I see a lot people say I rejected a low offer.

    Because, you have 99 other domains to sell

    What are your thoughts?

    Should you hold back for higher profit?
    Or should you try to close as deal as ling as an offer is decent?
    If it is for a sheep domain. One of a thousand, not your baby.
     
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  2. Jimmysun

    Jimmysun Established Member

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    Everything valuable is about their uniqueness, if pricing cheap works out then there will have been many people love to doing so.
    Because there has trademark issue involved, if there is a famous/well known company called 3M has 3m.com then those who holding 1-9M.com out of 3 are wrecked, or if a company insist using/building brandable xxxxxx.io then xxxxxx.com is also get ripped...if both facebook.com and facialbook.com regged at same time then the later one are ripped...so on.
     
    Last edited: Sep 7, 2020
  3. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi

    some liquid domains, may not have as much value, as non-liquid.

    Hi

    what assumptions and who assumes this?
    i think one has maybe read one too many meaningless blog posts on the subject

    as, the str is an end-result, not a pre-calculated goal
    additionally, str has no relation to amount of earnings or relative profits., unless divulged, as those points are unknown.
    nor does one know what a portfolio holder paid to accumulate each domain within or if any of them earn $ while sleeping

    Hi

    if... one is selective while accumulating, then they have pretty good feeling about selling them all.
    however, that same individual also knows that "time" is the x factor and it's also what decides the str on yearly basis.

    Hi

    i think that is confusing and contrary
    because a str shouldn't be factor in pricing

    if you want to sell a lot of names cheap, then that's one choice
    when i first started, yeah, i sold $6.95 hand regs for 2x/3x/ profits and str wasn't even a mentionable in dn community.
    if i calculated str then, it would be in double digits
    but now, some of those hand regs are worth $$$$
    and i might sell 1 or 2%, if, offers are proper.

    Hi
    that's only true for every domain that got registered, by a registrant.... because they were original buyer.


    as for rejecting offers
    i created a thread recently asking how much money from offers have you declined
    https://www.namepros.com/threads/in-the-buying-and-selling-game-how-much-money-have-you.1204248/

    many offers are just too low and many of the people who submit them, know it.


    imo....
     
  4. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    Thanks for the thoughtful response. Makes a lot of sense
     

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