Advice on domain price

[jaydub]

lol...and me the "other" generation...

I of course use blowdryer :-0

[Banned: Wzhxvy]

http://www.dnforum.com/f324/7040-com-thread-395788.html

BIN is $1100...highly brandable name.

Thanks Mikeboy. Maybe I should use your strategy of buying my first name .ca from domainers for thousands of dollars and come back on the forum trying to sell it to domainers for more.

My comment was related to end user sales. When selling on this forum, do not expect much...maybe marginal money on flips.

---------- Post added at 08:32 AM ---------- Previous post was at 08:26 AM ----------

Who said on this thread that they would buy it for 2K ?

What was said, is what is the value of the domain to the "end user" making an offer of $600 ? If they are willing to pay $600, why would they not pay 3K ? Does he know who they are, what their motivations are, etc...all of these factors play into what you price your domain at.

My point was that selling domains to end users at $600 a pop is not going to even cover your costs long term...your point of time value of money is negated by the opportunity cost argument.

[DomainsInc]

Spex makes a great point. This discussion is aimless if you do not know who the buyer is.

That should be your primary objective.

Personally, I do not even get up in the morning for $600 bucks...you have to have a min price to sell your domains or it makes zero sense to be in this business as you have all your maintenance/renewal costs. I personally would not let any domain go for less than 3K...no matter how crappy it is.

what would you do if it took 2 years to sell a single domain for that amount?

[Banned: Wzhxvy]

what would you do if it took 2 years to sell a single domain for that amount?

It all depends if I owned 50 domains or 1000. My experience, and obviously depending on portfolio quality it will be different is that in 2009 I received inquiries on 2% of my names and in 2010 (slow year) it was 1%.

Typically only half of your inquires results in serious discussions. So its a matter of how big your portfolio is and what it costs you to maintain it, and how aggressive you want to be.

For me personally, it would not make sense to sell anything for less than 3K based on my portfolio size. I literally have sold names I acquired from TBR for 30 bucks for 6K in less than 6 months from acquiring to an end user who never owned the name before...you create the market because if they want that name, they have to pay you to get it. You just need to know what their walkaway point is.

If you are launching any sort of marketing campain, the cost of the domain is minimal in comparison to the campaign and projected revenues...so 3K is nothing. If the offer is from someone in their basement thinking they can develop the next best website, you need to decide if its worth your while to sell to these type of buyers or hold out.

[DomainsInc]

It all depends if I owned 50 domains or 1000. My experience, and obviously depending on portfolio quality it will be different is that in 2009 I received inquiries on 2% of my names and in 2010 (slow year) it was 1%.

Typically only half of your inquires results in serious discussions. So its a matter of how big your portfolio is and what it costs you to maintain it, and how aggressive you want to be.

For me personally, it would not make sense to sell anything for less than 3K based on my portfolio size. I literally have sold names I acquired from TBR for 30 bucks for 6K in less than 6 months from acquiring to an end user who never owned the name before...you create the market because if they want that name, they have to pay you to get it. You just need to know what their walkaway point is.

If you are launching any sort of marketing campain, the cost of the domain is minimal in comparison to the campaign and projected revenues...so 3K is nothing. If the offer is from someone in their basement thinking they can develop the next best website, you need to decide if its worth your while to sell to these type of buyers or hold out.

it also depends if selling domains is the only income stream you have or not (is domaining a business to you or an investment). so many variables really. generic keywords/brandable names/"business" names...you might think 3k is nothing to a business but many just don't see much value. i get inquiries every day but most don't want to pay more than 100 bucks, and these are 'end users'. mostly small to medium businesses. they want the domain but its not going to break them if they don't get it. one way or another you've got to stay profitable. holding out forever on offers that may never come could work but more often than not, doesn't.

[fwdtech]

If you are launching any sort of marketing campain, the cost of the domain is minimal in comparison to the campaign and projected revenues...so 3K is nothing. If the offer is from someone in their basement thinking they can develop the next best website, you need to decide if its worth your while to sell to these type of buyers or hold out.

Agreed.

The OP is asking "how did I do negotiating down to $600."

The OP should have been "I've received an inquiry - how should I proceed?"

If the buyer is a major corp., they'll easily pay x,xxx & xx,xxx.

If it's Joe Blow, the original offer was $100, right?

[onlinestoreca]

The OP is asking "how did I do negotiating down to $600."

The OP should have been "I've received an inquiry - how should I proceed?"

If the buyer is a major corp., they'll easily pay x,xxx & xx,xxx.

If it's Joe Blow, the original offer was $100, right?

I don't appreciate the comment "how did I do negotiating down to $600". That's pretty crass considering you know nothing about what I am doing.

I know how to proceed thank you, I have bought and sold a lot of domains and am doing very well for myself. I have a lot of experience negotiating and selling many different commodities. Regardless, I will always ask for advice and opinions and continue learning from different points of view.

It's pretty bad when you can turn asking advice from people on this board into something negative.

[fwdtech]

Not trying to be crass.

you know nothing about what I am doing.

This is the point. One doesn't know critical decision-making information, esp. who the buyer is, as well as how the negotiating on price developed.

So, there's no real useful suggestions available at this stage.

[onlinestoreca]

This is the point. One doesn't know critical decision-making information, esp. who the buyer is, as well as how the negotiating on price developed.

So, there's no real useful suggestions available at this stage.

I will disagree.

Market researchers constantly ask people what they feel the price point of a product is perceived to be. The people they ask don't need to know who the buyers are, the market researchers are just gathering information so that they can include it in their final decision of the price. It is just one factor, but a very useful factor.

I asked people to try and gather information for myself. I included that information with my research of the potential buyer, the state of the market, liquidity of the name, my portfolio status, my financial situation, my business plan and goals, and always most important to me is opportunity cost.

I understand that you may not have found the suggestions on this board useful, but I did. It helped me in deciding to turn down the $600 offer. Two days later the buyer contacted me and accepted a price of $1k, which I felt was worth letting it go at this point in time. It's only an extra $400, but more importantly I don't have to worry about letting a hidden gem go because I didn't think of a not so obvious application for the name.

[Banned: Wzhxvy]

Congrats on selling your name. Good for you to get more money.

[Namefox]

Congrats on selling your name. Good for you to get more money.

I like encouragement ;-) Congrats on selling the domain.

[Banned: theinvestor]

It's always nice to sell but it doesn't happen much so the key is to get every penny you can out of it.

[bigbody300]

How did you sell it? Auction? or did the buyer stumble across your site?

[onlinestoreca]

How did you sell it? Auction? or did the buyer stumble across your site?

The buyer did a whois.

[DropWizard.com]

We don't even start looking at offers under 3k to start. I can see the problems with this domain because hairdryers are a commodity product (easily found anywhere) still there are a lot of webpages competing and tons of adword ads so somebody is selling something on the internet. I wouldn't have let it go under 4-5k.

[Adam Dicker]

We don't even start looking at offers under 3k to start. I can see the problems with this domain because hairdryers are a commodity product (easily found anywhere) still there are a lot of webpages competing and tons of adword ads so somebody is selling something on the internet. I wouldn't have let it go under 4-5k.

I agree, I also won't sell name under 3k too often.

-=DCG=-