When to Sell your Domains with a Fixed Price


The majority of consumer products arrive with a fixed price. Whether it's groceries or automobiles, most items for sale have a ticket price they can be bought at. Consumers research for items that fit their budget and pay the price.

These are tangible products that have a valuation model related to the asking price. There is a manufacturing or production cost, transportation costs, and profit overhead. Discounts are applied as part of a promotional sale.

Intangible assets, such as domain names, fall into a different category of products.

Domains have no direct manufacturing cost, but they can be identified as "premium" and given a registration price much higher than non-premium variants. While there is no real-world cost to generate a domain as an entry in a database, there are associated costs.

For example, a domain Registrar pays for a back-end system to manage domain transactions. Personnel needs to be hired to manage processes that are not automated, or to provide support to issues or requests. Registrars often operate on a thin margin and require close management of their finances.

The end result is a domain name that seems to cost zero to generate, but in fact, it has an associated cost estimated at several dollars. That same domain, once registered, has unlimited potential via development or resale.

Aren't domain names amazing?

The domain aftermarket is packed with millions of domains for every taste and budget. Venues such as the Uniregistry Market and Afternic are open 24/7 to anyone interested in a domain name. Domain investors can list their domains and wait for the right offer, or sell them outright with a fixed price.

When offers arrive, expert domain brokers can negotiate on one's behalf and close the deal at a comfortable middle ground.

There are times when setting a fixed price to a domain makes more sense, however. Here are some reasons for setting a fixed price to your domain name:

  • Statistically, anything with a fixed price tag sells faster, as long as the price is reasonable. Nobody will buy a Toyota when the price matches a Ferrari, so that number should be defined using good research and comparative sales as a reference.
  • Quite often, the psychology of the buyer kicks in: the fixed price is "processed" by the buyer for several days, or on a whim. Negotiations can make many buyers feel timid, and those that aren't savvy enough about the domain aftermarket's nuances can lose interest after the first couple of back and forth exchanges.
  • Exposure on syndicated networks, such as the AfternicDLS, multiplies the odds of having your domain listing seen by potential buyers; this option utilizes the fixed price model.
  • Automation with fixed priced domains is well-established on most domain selling venues. The domain's "Buy It Now" or BIN price can be set at your Uniregistry Market back-end, with or without an expiration date. Once the buyer initiates the checkout process, you don't have to move a finger.

Of course, the most important part is deciding which domains would benefit from a fixed pricing strategy.

Generic keywords that are of premium quality tend to remain at the same valuation levels, while descriptive, composite, and brandable domains might fluctuate in price. Pick the ones you consider to be of solid value, price them, and set a fixed price listing. At the same time, leave those domains that might increase in value due to technology trends for example, as negotiable listings.

Lastly, consider a hybrid model of listing your domains with both a BIN price and a "Make Offer" option, that can also involve a minimum amount. At the Uniregistry Market, you can customize how you sell your domain names, and take advantage of the great management tools available on the platform.

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.

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