question Go for the unicorn sales or lots of smaller sales?

[Webmail]

I find myself constantly struggling with the issue of whether I should price all my domains low or high.

I know this depends entirely on the quality of the domains but lets pretend here the domains are hand regs low to mid quality (many related to recent tech/ai).

To keep it simple let's pretend John has 1000 domains. Should he price them all around $1988 - $2998 in hopes of getting more sales or $9888 - $19888 to possibly make more profit. John can also put them all on "Make Offer" but the problem with this is that they will not be listed in many places with no price including Afternic and its partners.

I would be interested to hear what others think about this and what you would do in this situation.

To make it simple I have created a poll but feel free to chime in with your thoughts.


(I know this topic has been discussed before, but last thread about this topic was years ago, time for a refresher).

 

[Chris Hydrick]

For every 1,000 .com's @ apprx $10 per year, you need $10k per year to cover yearly renewals. A 1% STR (sales through rate) means you sell 10 domains per year. At $2,000 per sale - 20% commission, you make $1600 per sale. $1600 x 10 = $16k.

The issue here is most hand regs aren't going to carry over a 1%STR, so cut that in half to 0.5% STR, you sell 5 domains per year. 5 x $1600 = $8,000 leaving you $2,000 short of covering your yearly renewals.

Can changing BIN price change STR, absolutely! You may not have to pay $10k in renewals if you set wholesale BINs to other domainers. But focusing on end-user sales at an assumed 0.5% STR, if you price names at $4,000 - 20% = $3200 per sale. $3200 x 5 = $16k, the same amount you would have made with a 1% STR but with half the sales and double the price.

If you're expecting that you'll have a 0.1% STR, then that means you estimate to sell 1 domain per year per every 1,000 domains. Can you see any industries paying $12k+ for any of your domains? If so, all you need is 1 sale to cover 1,000 yearly renewals. But if you priced everyone out, and receive 0 sales, then you better have funds or a strategy come renewal time.

Without knowing the general type of domains, it's hard to speculate, as some may never sell. And if your domains aren't selling and aren't good enough to wholesale then that may mean taking on debt to cover renewals if not just dropping domains.

 

[biggie]

The issue here is most hand regs aren't going to carry over a 1%STR,

Hi

very nice examples of "if and then" scenarios.

the issue of whether I should price all my domains low or high.

Hi

in reality, a portfolio should have a variety of categories/keyword selections.
and since each domain is different, then each should be priced according to its own criteria of value for that category.

imo...

 

[DomainRecap]

Use both strategies and a lot of other ones too, and just tailor them to the quality and potential demand of the domain in question.

 

[Damand]

It's a challenging decision, balancing the desire for quick sales against holding out for larger payouts. Well, in my case, lower-priced domains did indeed sell more frequently, providing a steady stream of income that helped cover renewal fees and invest in new registrations. However, these sales were often not significantly profitable, considering the cumulative costs of holding a large portfolio.

 

[Webmail]

For every 1,000 .com's @ apprx $10 per year, you need $10k per year to cover yearly renewals. A 1% STR (sales through rate) means you sell 10 domains per year. At $2,000 per sale - 20% commission, you make $1600 per sale. $1600 x 10 = $16k.

The issue here is most hand regs aren't going to carry over a 1%STR, so cut that in half to 0.5% STR, you sell 5 domains per year. 5 x $1600 = $8,000 leaving you $2,000 short of covering your yearly renewals.

Can changing BIN price change STR, absolutely! You may not have to pay $10k in renewals if you set wholesale BINs to other domainers. But focusing on end-user sales at an assumed 0.5% STR, if you price names at $4,000 - 20% = $3200 per sale. $3200 x 5 = $16k, the same amount you would have made with a 1% STR but with half the sales and double the price.

If you're expecting that you'll have a 0.1% STR, then that means you estimate to sell 1 domain per year per every 1,000 domains. Can you see any industries paying $12k+ for any of your domains? If so, all you need is 1 sale to cover 1,000 yearly renewals. But if you priced everyone out, and receive 0 sales, then you better have funds or a strategy come renewal time.

Without knowing the general type of domains, it's hard to speculate, as some may never sell. And if your domains aren't selling and aren't good enough to wholesale then that may mean taking on debt to cover renewals if not just dropping domains.

Thank you Chris for the well detailed explanation and price breakdown.

I think for now I will price most of them on the low end to get more sales and pay for some renewals.

 

[biggie]

I think for now I will price most of them on the low end to get more sales and pay for some renewals.

Hi

if you're lowering pricing on them to entice more sales to pay for renewals, then consider...

whether you will be able to replace the domain you sell back into the portfolio, with same quality or better, for same or lower price than the one you sold?

perhaps it's best to just drop some domains rather than selling one for less than its potential worth in the future.

imo...

 

[branding]

consider...

whether you will be able to replace the domain you sell back into the portfolio, with same quality or better, for same or lower price than the one you sold?

Great advice. Gotta think long term.

 

[SpareDomains]

Price the lower end domains 1-5k so they get into the distribution networks of Afternic and Sedo as cheaper domains are impulse buys where somebody might not need approval to pull the trigger. Better domains make offer is fine as less likely somebody hits the buy it now on 20k, 50k, etc... and they might need approval before spending a higher amount if a company or partners are involved anyway.

I price everything I don't care about as I want them sold and gone so distribution networks help with that. Higher end gems I keep make offer as no urgency to sell since offers are frequent on the higher quality domains.

So for me it isn't price low or price high it's price by quality. Low end domains price and distribute. High end domains make offer and hold till the right offer presents itself. Only way I could say price all low is if someone owns all garbage. Only way I could say price all high is if it's a portfolio of gems. Price by quality which will usually be low, medium and high value domains.