Pricing your domain names is the first step towards launching a portfolio for the world to see.
That tag with a price can be displayed in the form of either a minimum asking price or a fixed, Buy It Now price (BIN). It can also be completely hidden and shared when someone inquires about your digital asset via a contact form.
The "old school" dictates that domains should not be priced and that anyone interested in them should step up to the plate first and make an offer. This way, you're not committed to any price, and anything goes.
The second approach encourages the use of a minimum asking price and the existence of a BIN. This way, impulsive buyers can pull the trigger and buy the domain—or at least make offers that fall within the asking price range.
Either method can be successful in the long term, depending on the particular domain names that are being up for sale. And either method can lead to this response from the prospective buyer:
"Are you serious? Domains cost $10 dollars to register—So why is this domain so expensive?"
The answer to this question is not complicated, but relaying it to the party interested in the domain can make or break the negotiations.
Domain names are unique, unreplicable digital assets, and unlike tangible consumer products, they exist in one instance. Unlike cars, and unlike stamps—a collector's item—domain names exist in a keyword plus extension format, separated by a dot.
Forming brands is the second most important function of a domain name, after pointing to a destination on the internet. The idea behind brands and brand names is that they are easily distinguished and memorable. The combination of the right keyword or keywords with the extension (TLD) creates a domain that serves as a unique brand identifier.
Domain valuation is dependent on a number of parameters that include the extension, keyword length, word reference, spelling clarity, and more.
Once in the aftermarket, domains tend to appreciate quickly. As they age, scarcity becomes their top quality, as more companies want to establish internet presence. You can get another Audi in the exact same model and trim color from another dealership, but you can't get the exact same domain if you can't acquire the one you want.
So that's why domains cost more than the base registration fee: they are unique assets with the ability to deliver all the benefits of a brand to their sole registrant.
But are domain names truly expensive, when they get listed on the aftermarket venues?
It's a question of budget, really. Not everyone can afford a Ferrari, or an Audi even. There are domains for every budget and pocket, and a lot of similar domains can be found for sale. When searching for domain names in the aftermarket, the prices can vary—from low three-figures to high six-figures, or more.
Looking for a $10 dollar domain is practically impossible, and that imaginary opportunity should be explained to the person who inquires about your domain for sale.
The Uniregistry Brokerage team that responds to such inquiries are able to educate your potential buyer about the benefits of owning the right domain for their business. Part of their job is to explain why these domains cannot be had for ten bucks and to explain the domain's valuation in simple terms. Their third task is to engage with your buyer in a way that leads to a successful sale, at a price you're comfortable with.
In a nutshell: Domain names cost substantially more when they are "for sale" in the aftermarket venues. While a $10 dollar domain is a pipe dream, not every suitable domain breaks the bank. Get in touch with the Uniregistry Brokerage team and find out how you can acquire the domain your company deserves to have!
The information contained in this blog is provided for informational purposes only and should not be construed as an endorsement, advice, or opinions from Uniregistry on any subject matter.