Domain investors often face their first dilemma when asked to price their domains upon listing them in a domain marketplace.
The Uniregistry Market offers several domain listing options, and provides two associated tools to give portfolio holders a head start:
- Interfacing with the Estibot domain valuation tool
- Sales history of related domain names
Armed with these two figures when listing a domain name, domain investors can begin their interactive journey towards pricing them efficiently. The idea is to maximize your return on investment, avoiding both the underpricing and overpricing of your domains.
When pricing your domains, the first point is to determine the anticipated lifespan of a domain that was listed for sale.
Quite often, sales data needs time to generate; however, if your domains are mostly from current events and news such as politics or the entertainment sector their lifespan might be limited. Your pricing should reflect the requirement for the domain to sell in a short timespan, versus a long hold that might take several years.
In general, category-defining domains and generics are kept longer, while newsworthy domains based on trends might sell more quickly when priced right.
The second point to keep in mind when pricing your domains is what other TLDs are in play. You should keep track of the top-level domains that might be better than yours, along with those that are of secondary value. These registrations or acquisitions can indicate emerging start-ups with fresh capital, eager to place an offer for your domain asset. Keep your data fresh and adjust your prices every six months across your entire domain portfolio.
Understanding the direction of your domains as an investment in a specific slice of the market is the third point. It's great to diversify your domain investments across several niches, instead of targeting entire verticals with variants of the same domain flavor. By diversifying your domain investments you should be able to accurately select the price points matching each niche market, and to observe their growth and sales potential.
The fourth point in pricing domains is the evolution of brands across existing markets. Experimenting in emerging technologies can be a fun pastime that can generate ideas for domain name registrations. Whether it is the 5G spectrum, nanotechnology, or electric vehicles, one's creativity can only be limited by imagination. If you can maximize your ROI by "inventing" brandables at registration cost, you are looking into a market with great potential. A word of caution: avoid obvious trademark violations; they are not worth the risk.
Lastly, one more point that is often ignored by many domain investors, is related to one's gut feeling through experience. While seasoned domain investors seem to maintain a sense of overall understanding of a domain name's pricing potential, many novice "domainers" underprice their domains, leaving a lot of money on the table.
"What if you are 'fresh' in the domain investing game?", you might ask.
It takes time to acquire that "third eye" but knowledge can be passed on; improve your abilities by socializing with other domain investors, and listen to what they have to say. Both Uniregistry and GoDaddy have great resources and offer communities for that exact task.
In a nutshell: Domain pricing is an art leveraged by several parameters. To maximize your profit, ensure you follow proven techniques and practices, and eventually you will learn how to also trust your instinct as well.