Selling is always at the center of attention – Don’t over price domains

I remember reading comments many posters left on domain blogs. The most popular question targets the selling side of domaining. Any person can purchase a domain name, but not everyone can sell a domain. One common problem I see is setting high prices on domains. Don’t overvalue your domains or you’ll continue searching for that first sale.

Domaining is like a game. The goal is to sell a domain to another end-user or person. Why should a buyer purchase your domain? World Wide Media, Frank Schilling, Rick Schwartz, and many successful domain investors can set high prices because they have super generic domains, as well as an established reputation in the domain industry. They own domains that can revolutionize the Internet. Hence, they can probably form their own registrar.

When I’m searching for various domain names, I usually land on Frank Schilling’s parked page. You’ll know when you reach a domain name owned by Frank. The domain’s letters are big, and the letters reflect on the bottom. Frank owns many quality resume and cover letter domains. Recently, he sold two generic resume domains to a popular resume company. One of the resume domains sold for 2.8 times more than the purchase price a few years back.

In two years time, the resume domain returned a nice profit. Schilling’s lottery.net was another major sale that netted him more than 5 times his initial investment. Many domain posters hang around on blogs to ask selling questions. They will list dozens of domains to ask for advice. It is a common cycle in the domain industry.

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New domain investors buy many domains without determining their market value. They’ll set high prices based on what they see on other domain sales platforms. For example, Go Daddy gives domainers the opportunity to list their domains as a premium listing for a small fee. On the landing page, I find that it is all too common for mediocre domains to have 4-6 figure prices. eBay is another domain platform where domain owners think people are clueless.

Who in the world is going to buy a domain for $50 million? If the domain is not business.com, then I don’t see anyone bidding on that domain. If you want to spend that kind of money, you will have to commission a Sedo broker, or another popular website to facilitate the deal. Domain investors complain about receiving insulting offers. I find that overvaluing domains creates high expectations. Even new domain investors searching for their first sale refuse to work with a buyer to sell their domains.

Domain valuation tools disrupt decision making. If a domain appraises for $30,000, the domain owner will want $50,000. The problem with making such an assessment is determining whether an end-user will pay half the amount to acquire the domain. The most exciting part of domaining is selling a domain. It makes you feel proud of your effort when you remain persistent throughout a deal to accomplish a sale. Furthermore, buying a quality domain at a good price is another gratifying experience. Sometimes, I question how a certain domain is still available for registration. I hand register 99.99% of all my domains. To be able sell domains is a rewarding process.

If a domain investors that hasn’t made their first sale continues to overvalue their domains, they will lack credibility. A domain blog owner that informs their audience they have obvious weaknesses in selling domains will lose trust in their fans. Selling domains is a challenge. It can be an easy as receiving an unexpected offer, or as hard as not receiving one reply to 100 e-mails. When attempting to sell domain, you can’t get discouraged. Trust me, selling domains can be dejecting. That is the reason many elite domain investors use domain brokers or companies to sell their domains. They own hundreds of thousands of domain names. There is no way they can sit at the computer to email thousands of end-users.

Domain investors have to be creative. Think of how businesses advertise their products and services. You never know when you will receive an offer to purchase one of your domains. You have to be ready when a buyer surfaces. Know everything there is to know about the domain keywords, niche and the market. Selling will always be at the center of attention. DN Journal is popular because people are interested in domain sales. The goal of domaining is to find quality domains to keep as long-term investments, or to resell in the aftermarket. Buying and reselling within a year can reduce overhead cost associated with renewals.

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2 Comments on “Selling is always at the center of attention – Don’t over price domains”

  1. zoop Says:

    i couldnt agree more with this. Pricing your domains is extremely important and can be the difference between and interested potential sale and someone outright laughing in your face.

    • Suisun Blog Says:

      Chris,

      Thanks for the post. Overpriced domains will scare an end-user away. Sometimes asking them to make you an offer may not a good way to sell a domain.

      However, you can ask high prices when you’re dealing with a high profile site. You know they will make their investment back, especially if the domain is one of their top services.

      Evaluate the end-user to determine whether they have good traffic, spend a lot of advertising, and if they will be using the domain to its full advantage.

      Thanks again.


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