When I got in the business over nine years ago, SEDO MLS was not launched yet, and Afternic DLS was in its infancy. When they launched, there was a significant push from both organizations to price your names. The "make offer" world of domains changed to more of a blended approach. Since then there has always been a stigma that BIN (buy it now) names are low-value names.
Those who price their names can get more exposure for their inventory using those services, but it also serves a very valuable purpose with our clients at Uniregistry.
Before you stop reading this article and say, "I am not going to sit there and price ALL of my names, that will take me forever," I am not asking you to. What I am suggesting is you provide prices as quickly as you can to any qualified lead that comes knocking unless there is a specific reason not to.
Why do I say this? I can back it up with data.
I have been working here at Uniregistry for 6.5 years. One of the many responsibilities I have is pricing names or reviewing prices on names as interested parties come in. We provide pricing services for many of our clients, but the one I will be pulling data from will be the NAMedia, a.k.a. Frank Schilling’s portfolio and compare it to other sellers of similar quality portfolios that use the very same technology and services.
First things first.
I do not price the same names over and over. We set a one-year expiration on all of our prices. We price higher than market value in most cases. This extra padding acts as an insurance policy in case the value changes for whatever reason. Also, popular names would have to be priced daily and would be a total waste of our time.
How do you set a price expiration in your Uniregistry account? Simple:
- Log in to your account at Uniregistry.com by clicking the "Log in" button in the upper-right corner of the homepage.
- In the top navigation bar, click the arrow next to "Market" and select "Market Options" from the drop-menu to enter your Market Profile.
- On the left navigation bar, click "Sales Preferences", the 4th item from the top.
- Next to "Quoted prices valid for", you can now set price expiration for your names for sale. We set a one-year expiration on our prices.
Back to the data.
Additionally, we have a base price that we have tested in different buckets over the years. That means the lowest we price a name is X even if it is worth less than that amount. Then we will discount from there.
If YellowDogDetroit.com is a name we own (which we don’t!) and our base price is $15,000 (which it is not) we both know that name is not worth 15, but we would price there anyway and move on.
The number of inquiries is one of our favorite metrics. Same with qualified offers. Some names are like volcanoes that are rumbling, smoking, and spitting lava. Just a matter of time before it blows! The interest keeps coming in, and so do the offers. It is a matter of when not if. Other names when you get your buyer you best pounce and get it sold as soon as possible.
Frank is one of if not the most successful domain investor of all time. I am not trying to get a promotion or a raise for writing this, it’s a fact. I guess that can be a discussion for another post. Since starting my time here we have sold over $105,000,000 worth of domains out of Frank’s portfolio alone. Let me tell you a little secret. 126,000 of his names have never received a single purchase inquiry. Not one. I will say it again. Not one.
Every single day I price names that have never been priced. We sell names that have never had an inquiry except for that one buyer every single day.
These names are not your battleships, they are your standard basic names that no one brags about when they sell them. They don’t go on Ron Jackson’s list or if they do they are usually buried at the bottom. They make up the majority of our sales. I bet if you are an avid domainer they make up a lot of your own sales. The problem is that the buyer can vanish as quickly as he came when they are gone they do not come back.
ZoomPeople.com (for sale)
Tangeras.com (please buy it!)
FreeReggae.com we just sold for $5,000
Udry.com we just sold for $5,000
If you have gotten this far reading this article then you are certainly an avid domainer. That means you can price a domain relatively quickly. I can in seconds. Most of the time.
Instead of asking for an offer, why not provide a price? Even if it is a very high one? It will take you about the same amount of time.
Or the worst side just not responding in a reasonable amount of time.
I took a look at multiple portfolios where sellers employ strategies opposite to this one:
- Requiring a minimum offer first even though the buyer is clearly qualified.
- Requiring a minimum offer first then when receiving it asking for a higher minimum offer.
- Not responding in a timely manner. We respond in hours on average. Some of the clients average days, weeks or months.
I did a lot of different calculations comparing them to NAMedia, and this is what I found:
- The average sale price comparing all sales below $10,000 USD is almost 30% higher.
- The conversion rates (very hard to accurately deduce this number) is exponentially higher. The sales cycles are shorter.
The most basic viewpoint is if the Brokers are chasing for a price, then they aren’t on the phone selling your names.
Everyone wins. The buyer gets the name. You get more money, and in the end, doing less work for it. See for yourself here are some of the sales I am referring to that we made over the last 12 months that had little to no inquiries. We priced fast and sold them fast, and far above industry average/values:
The columns are the domain, the sold price, the sale cycle, and the number of inquiries the domain has received.
- Sale Cycle is the amount of time from the day the buyer inquired to when we received the funds.
- Number of Inquiries: The number of leads we have received. This includes misdirected buyers (people who are confused and potentially are looking for a product or service, not actually interested in purchasing the domain) as well.
|Domain||Sold price||Sale cycle||Inquiries|
As you can clearly see while some strategies have the buyer having to make a minimum offer of x,xxx we have already quoted, negotiated, and collected.
Want to give it a try?
Email email@example.com or call him at 1-949-416-2555 x8342. He will help you get set up.
Until next time folks,
Jeffrey M. Gabriel
Vice President of Sales