sales How to Price Your Domains for any Market

[Whizzbang]

As I’ve stated in a previous article, pricing domains can be a difficult task. Many domain owners firmly believe that the price completely depends upon the buyer. The problem with this position is that it runs contrary to the fact that priced domains are more likely to sell. In this article, I’m going to attempt to put some mathematics behind pricing domains in ANY market vertical.

I made my first attempt at pricing domains in an article last year. At the end of the article I suggest that a lot more thinking needed to go into the model…..so here goes!

I’m a firm believer in economic theory and the rules of supply and demand. High prices are the result of a combination of high demand and low supply while low prices are a function of both large amount of supply and low demand. You can see the rules of supply and demand all over the business world; from oil and iron ore right through to dog food.

Supply and demand lead me to attempt to build a demand curve for a set of keywords in a market vertical. I entered mortgage, loans and finance into Google’s keyword tool and out popped 703 keywords with both the estimated volume of traffic, recommended price point and demand (ie. competition) for that keyword.

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[frank-germany]

High prices are the result of a combination of high demand and low supply

agreed again


how low can supply go?
when only 1 is available as in case of domains

 

[frank-germany]

As I’ve stated in a previous article, pricing domains can be a difficult task. Many domain owners firmly believe that the price completely depends upon the buyer. The problem with this position is that it runs contrary to the fact that priced domains are more likely to sell. In this article, I’m going to attempt to put some mathematics behind pricing domains in ANY market vertical.

I made my first attempt at pricing domains in an article last year. At the end of the article I suggest that a lot more thinking needed to go into the model…..so here goes!

I’m a firm believer in economic theory and the rules of supply and demand. High prices are the result of a combination of high demand and low supply while low prices are a function of both large amount of supply and low demand. You can see the rules of supply and demand all over the business world; from oil and iron ore right through to dog food.

Supply and demand lead me to attempt to build a demand curve for a set of keywords in a market vertical. I entered mortgage, loans and finance into Google’s keyword tool and out popped 703 keywords with both the estimated volume of traffic, recommended price point and demand (ie. competition) for that keyword.

Read More >

your approach here is similar to estibots approach

SecondMortgageRates.com estibot $2.000 USD
SecondMortgageLoans.com estibot $1.900 USD
RefinanceSecondMortgage.com estibot $1.400 USD

 

[Kazzia]

agreed again


how low can supply go?
when only 1 is available as in case of domains

and circumstance

 

[briguy]

Kinda of my belief..
"The only reason marketers will consistently pay more for certain keywords is because the traffic from that keyword provides a return on their investment. "

Well written article!

 

[selfmug]

thank you, useful to me, sometime i have problem to pricing some domains