Are You Pricing Yourself Out of the Market?

Are You Pricing Yourself Out of the Market?

“Arriving at the real value of a domain is like a blind man, in a dark room, looking for a black dog – that just might not be there…” — Unknown

The most common mistake new domainers make is overvaluing their domains and listing them at ridiculous prices that no one will pay. After a while they feel frustrated and start asking: How much is my domain worth? The often heard answer to that question is: It’s worth what someone will pay for it. An answer that, while completely accurate, is simultaneously useless.

I think pricing is one of the most underrated variables in our industry. It can make or break our business model. Price too low and we risk leaving big money on the table. Price too high and we decrease the chance of a sale or possibly even price ourselves right out of the market.

I don’t have the magic solution to the pricing conundrum. But I can do what I usually do. Provide some sales data, give you my two cents and let you make up your own mind 🙂

So here we go.

Brandable Domain Sales
BrandPa took a victory lap with a post in their blog detailing their sales figures for their first year ending in April of 2018.

BrandBucket reported their 2016 sales in the summer of 2017 and gave helpful sales details regarding pricing.

Misc. Sales compiled by yours truly from three different brandable marketplaces could also provide some, limited sample, insights into more recent sales trends. Out of the nearly 400 sales I discussed in a prior post I have sales prices for about 190 of them and the break down of those sales can be found below.

All Domain Sales
GoDaddy also reported on their BIN sales at the 2018 NamesCon event earlier this year and based on a chart they provided I’ve made some calculations that may or may not be helpful 🙂

All in all the data looks like this:

Summary
As you can see 29% of GoDaddy’s sales were under $1,000 and more than 70% were under $2,500. Often brandable marketplaces will report that $1,500 to $2,500 is their sweet spot. In some cases as much as 90% of reported sales are under $5,000.

So what’s the sweet spot for you based on the quality of your domains and your business model?

Are you a domain flipper or a domain investor or something in between? Will you maximize your time, money and profits by having many small sales on a weekly or monthly basis? Or by waiting for a big ROI even if it takes years to materialize? Once you’ve made that decision you’ll have some idea about where your names fit on this pricing spectrum.

Some domainers do well flipping hand regged names for $500 or less. Others are content with a only a handful of big sales each year. Still others make their money on a sale or two per month. Your domain quality, work ethic and skills will all have a big impact on how you market, promote and price your domains.

Till next time: May all your sales be to end users!

The post Are You Pricing Yourself Out of the Market? appeared first on DNgeek.

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