Why would someone sell a Brandable BB listed domain for low XX?

[hn]

Off late I have seen many listings in the forum who are willing to pay low $XX for a BB listed domain? I really dont get it because say BB charges a user $10 to list the domain > it lists only if it considers it brandable and salable. I am aware in real market situations getting BB prices may be a bit far fetched as they place a "end user" pricing on the same. So my question to fellow domainers is this > if you pay $10 to BB and then if a buyer on this forum asks for a price of $20~30~40 etc why would you sell it? Would you better not wait for it to be sold on BB or for better prices? Is there something that I am missing?

 

[Dominic Belley]

It might never sell on BB.
A lot of sellers are losing faith in BB and prefer to get $30-$50 back, make a small profit and invest it somewhere else.

 

[NamesMax]

Most of the ones on NamePros are "BrandBucket Accepted" which means BB has approved the name but the listing fee has not yet been paid. The buyer will still need to pay it.

I see 2 reasons you see these at those prices in the forum:

1. Cash flow needs. Someone needs to raise some quick cash.

2. Business model. Some have a business model of registering a "wholesaling" names. Hand reg for $8 or $9 and flip for 3 or 4 times. They have to do it in volume. Having the BB acceptance makes the name more liquid.

 

[DKN]

In Economic perspective,

When Demand Increase: price increases, quantity increases.

When Demand Decrease: price decreases, quantity decreases.

When Supply Increase: price decreases, quantity increases.

When Supply Decrease: price increases, quantity decreases.


Due to high supply the price range decreased between $15 to $35

Some sellers are more happy with their 2X Return for their investment of $10 Handreg.

It depends upon seller's financial requirements.

 

[namerav]

Agree with @NamesMax for quick liquidation.

 

[Hypersot]

guys, those are the names that got *accepted* , they're not the names registered and sent to BB
If they sell for $20-$40 then they get a loss. Am I also missing something?

Even if one regs 100 names and sells just one at BB prices, the gain is way higher than with all the trouble one has to go to support all the dozens auctions for $10-$20 profit

Note that I consider domaining time as $$ thus the above model sounds a waste of money to me

JMO

 

[hn]

Yup... so that comes back to the root issue with domaining according to me! The "sold" prices you see cannot be achieved. The frontrunners or the initial people who entered domaining are dumping it to the second and third line. They create a sort of "hype" that domains are being sold at XXX or XXXX rates. But when you go out to sell even for XX you suddenly realise that you are the last one holding the domain and when we ask we are told that the "trend" has changed and the domains are no longer the trend so buy new domains and dump the old domains at a loss. As this cycle keeps on repeating only the leaders keep the profits and the others have to keep the losses? Am I right? or missing something in the entire picture?

 

[Chris Hydrick]

BrandBucket doesn't always have the keenest eye for brandables. Often times they pass on "good" ones, and accept "bad" ones. As a domainer, don't we feel all of our brandable's are "good" thus the reasoning for registering it?

So if we buy 4 brandables at $8.50 each and only one get's accepted to BrandBucket. All we have to do is sell the brandbucket domain for $34 to effectively get 3 brandables for free. Granted, these domains won't have the lottery option of being sold on BrandBucket so you'll need to have an alternate way of selling your brandables.

Selling cheap has allowed me to get liquid quick whenever I needed funds for a new Brandable purchase. I sold a BrandBucket domain cheap to get the funds to register the last domain I sold on BrandBucket. Without selling cheap, I wouldn't have been able to buy the expired brandable in time.

With that said, I'm still not sure selling cheap is the smartest approach even though I do it often. It hurts to see a domain you sold for $XX sell for $X,XXX a few months later. It happens to the best of us resellers some time or another.

 

[DKN]

Note that I consider domaining time as $$ thus the above model sounds a waste of money to me
JMO

With that said, I'm still not sure selling cheap is the smartest approach even though I do it often.

I agree with both of you at this point, Its not a profitable approach to sell for 2X or 3XReturn.

This approach will be good for the expiring domains (planning to drop).

Registering domains for only resale is not profitable one, also it requires lots of work to monitor auction and payment processing.

 

[Chris Hydrick]

I sold a BrandBucket domain cheap to get the funds to register the last domain I sold on BrandBucket. Without selling cheap, I wouldn't have been able to buy the expired brandable in time.

To clarify, the BrandBucket domain I sold cheap wasn't expiring soon. I needed to liquidate to have funds to purchase an expired domain that day. Essentially, I sold a BrandBucket published domain for $30 and used $18 of which to purchase and list a domain that later sold for $1,900.

This approach will be good for the expiring domains (planning to drop).

This is a risky strategy. Of course if you can't afford the renewal, it's smart to sell opposed to letting it drop.

I say risky because a BrandBucket domain I sold to a NPer recently sold on BrandBucket within days of the domain being renewed. I imagine the buyer was hoping the seller would let it expire, and they could pick it up for less. Then once the domain was renewed the buyer realized they had no other option but to pay full price.

 

[domainnamesdaily]

To clarify, the BrandBucket domain I sold cheap wasn't expiring soon. I needed to liquidate to have funds to purchase an expired domain that day. Essentially, I sold a BrandBucket published domain for $30 and used $18 of which to purchase and list a domain that later sold for $1,900.

Nice job Grilled Jesus. This was a nice strategy. Congrats.

 

[biggie]

Off late I have seen many listings in the forum who are willing to pay low $XX for a BB listed domain? I really dont get it because say BB charges a user $10 to list the domain > it lists only if it considers it brandable and salable. I am aware in real market situations getting BB prices may be a bit far fetched as they place a "end user" pricing on the same. So my question to fellow domainers is this > if you pay $10 to BB and then if a buyer on this forum asks for a price of $20~30~40 etc why would you sell it? Would you better not wait for it to be sold on BB or for better prices? Is there something that I am missing?

Hi


it's based on hype and propaganda of reported sales, originating from that website.

originally, they were only accepting domains that were non specific to any subject, and it appeared that they had a criteria for "quality".

since it's perpetuation across the domain community, some have used their probability of a "sale", as a precursor for "value", that they attach to any domain, regardless to it's quality, which has been accepted.


the logic is flawed at every premise, yet new schoolers' don't know, and the "flip group" exploit it, for low profit gains.


note: this subject has been mentioned before, regarding whether or not a domain name's acceptance, automatically adds value.

imo...

 

[Asfas1000]

Even if one regs 100 names and sells just one at BB prices, the gain is way higher than with all the trouble one has to go to support all the dozens auctions for $10-$20 profit

Not really, the total cost would be around $1,900 if you also factor in the $10 BB listing fee.

The total revenue would depend on the sale price, if the domain sells for $2,000, the seller gets $1,400 or so.

 

[Hypersot]

Not really, the total cost would be around $1,900 if you also factor in the $10 BB listing fee.

The total revenue would depend on the sale price, if the domain sells for $2,000, the seller gets $1,400 or so.

I'm afraid your calculation is wrong considering the factors I provided.
I mentioned two important things:
1. time = $$ (you don't account that into your formula while for me this is *the* most important factor)
2. Not all 100 domains will be accepted. I considered only 20-30 domains accepted with 1 sale (I actually had one sale on 15 or so domains accepted).

so, yeah, I'll stick to my formula and please don't underestimate the value of our time. I can honestly say that, if I had another 20 hours in a day, I'd be using them to full effect.

 

[Asfas1000]

I considered only 20-30 domains accepted with 1 sale

Sorry, it seems I misunderstood.

But 1 sale in 20 or 30 domains doesn't sond like the norm.

Even if one regs 100 names and sells just one at BB prices, the gain is way higher than with all the trouble one has to go to support all the dozens auctions for $10-$20 profit

I was referring to this, I don't think you come on top at BB either. $900 paid for regs and $200-$300 for BB listings. Revenue around $1400 for 1 sale.

 

[DomainVP]

Yup... so that comes back to the root issue with domaining according to me! The "sold" prices you see cannot be achieved. The frontrunners or the initial people who entered domaining are dumping it to the second and third line. They create a sort of "hype" that domains are being sold at XXX or XXXX rates. But when you go out to sell even for XX you suddenly realise that you are the last one holding the domain and when we ask we are told that the "trend" has changed and the domains are no longer the trend so buy new domains and dump the old domains at a loss. As this cycle keeps on repeating only the leaders keep the profits and the others have to keep the losses? Am I right? or missing something in the entire picture?

Very simple.... BB accepts junk to make the $10 on their name submissions.

New domainers think BB is some kind of magic solution to selling domain names, when the truth is that there is a 3%-5% success rate if you aren't Michael Krell.

So to sell domains with them consistently you would need to have a minimum of 300 to 500 domain names listed with them... costing $3000 to $5000 in listing fees... and your domain MIGHT sell for $1800, minus success and logo fees. leaving you with a few hundred bucks.

The BB sales model is a pipe dream for anyone else that isn't directly affiliated with them.

With BB you are either selling your name for too cheap, taking a hit on fees, or just paying for 'acceptance' that isn't any more relevant than getting approval from the guy at your local corner store.

Lister beware when it comes to BB.

 

[Chris Hydrick]

Very simple.... BB accepts junk to make the $10 on their name submissions.

New domainers think BB is some kind of magic solution to selling domain names, when the truth is that there is a 3%-5% success rate if you aren't Michael Krell.

So to sell domains with them consistently you would need to have a minimum of 300 to 500 domain names listed with them... costing $3000 to $5000 in listing fees... and your domain MIGHT sell for $1800, minus success and logo fees. leaving you with a few hundred bucks.

The BB sales model is a pipe dream for anyone else that isn't directly affiliated with them.

With BB you are either selling your name for too cheap, taking a hit on fees, or just paying for 'acceptance' that isn't any more relevant than getting approval from the guy at your local corner store.

Lister beware when it comes to BB.

I disagree with most of what you're saying.

If I compile a list of currently published BrandBucket domains vs BrandBucket domains that sold, I doubt you'd be able tell them apart without knowing the sales data before hand. Simply put, the definition of a good brandable vs a bad brandable is subjective to a multitude of factors.

They were first to market, and have spurred a lot of competitors. Thus, they rank well in important keywords, and have spent money marketing to attract an enduser audience. The addition to the marketplace helps them keep market share by being able to provide the largest inventory of vetted brandable domains.

I would agree that they need to do something about their listing fee's considering the growth of their marketplace and quality of logo's. Why do listing fee's cost more than the domain itself?

 

[Chris Hydrick]

New domainers think BB is some kind of magic solution to selling domain names, when the truth is that there is a 3%-5% success rate if you aren't Michael Krell.

If sellers want a higher success rate, stop hand regging domains, and start paying mid $XX to low $XXX for a solid aged brandable at reseller prices then submit premium quality domains to BrandBucket. Quality over Quantity, or play the lottery of brandable hand regs because snapping domains can be risky if you don't know what your doing. Note: I sold 3 domains on BrandBucket. 3 hand regs. (2 made up domains + 1 Keyword Cloud Domain) Plus 1 more BrandBucket sale (made up domain) of a domain I sold for $XX on NP was also a handreg.

If you can't handreg or snap yourself a brandable lottery ticket, buy a domain that has already been accepted / approved. Buy a domain not only because it's a BrandBucket domain or even the suggested pricies. Make your decision based on the quality of the domain, and what you feel you could get for it on other marketplaces. You can de-list with a 30 day notice at any time.

Resell Buyer beware - Domains are investments. Some are short term. Others are long term.

 

[brindle123]

Seems like a way to get some cash out of new domainers who this their domain is worthy since it was accepted by BB. So the new guy pays for the listing only to have it sit there and not sell.

There are plenty of sales sites that only charge is the domain is sold. Don't pay extra for a service that only takes your money before a sale!

 

[Chris Hydrick]

Seems like a way to get some cash out of new domainers who this their domain is worthy since it was accepted by BB. So the new guy pays for the listing only to have it sit there and not sell.

That's why you should use your discretion when buying a BrandBucket domain as a reseller. Don't just buy because it's BB Accepted.

 

[brindle123]

That's why you should use consider the brandable domain you're bidding on. Don't just bid because, it's BB Accepted. You have to like the brandable for other reasons.

For me a brandable has to makes sense in a niche that has value. A brandable that could be used for bird cages doesn't has a base that would generate the revenue to make it worth buying or selling.

Now if that brandable deals with real estate, banking, or stocks, then there is money in that niche and will generate more money in sales due to the money flowing in and out of that niche.

 

[biggie]

anybody who is trying to persuade you to buy names, just because they were listed, ... has to have a vested interest in that philosophy.

imo...

 

[DomainVP]

Nobody needs BrandBucket except for BrandBucket themselves, and those that bow to their philosophy of 'accepted' domains.

 

[Chris Hydrick]

anybody who is trying to persuade you to buy names, just because they were listed, ... has to have a vested interest in that philosophy.

I'll admit, I have a vested interested in BrandBucket domains so take my advice as such.

Nonetheless, BrandBucket accepted or not, this should not deter you from buying a BrandBucket accepted brandable. Buy it for the brandability of the domain itself. Just because it's BrandBucket accepted doest mean you have to pay $10 and publish it with them if you have other means of selling brandable domains. It simply gives you the pre-vetted option to sell with BrandBucket.

 

[johname]

The thing to remember is sure BB wants quality controls for names in their system. But also they know they need a big inventory too (even if they may not want to publicly admit it). Need a long grocery line for that picky and unpredictable cart pusher. BB's desire is every person looking to buy, leaves with a domain.

This leads to accepted domains that owners will have to renewal every year, yet the domainer in them know it probably will never sell. So eventually decides to dump (sell on NP) instead of renewing.