strategy This is how I price my hand-registered domain names

[infosec3]

This is how I price my hand-registered domain names

Some people ask how I manage to sell so many hand-registered domain names. Before I answer that question, it would be convenient to answer this one: How many hand-registered names do I sell per every ten names I register? Generally, I sell between three and four names out of ten within the first two weeks of registration, but result vary depending on the month and hours dedicated to end-user search. So, if I buy ten names, about three of those will sell within two weeks. Some may sell later. Some others will never sell.

Everything considered, the business is consistently profitable, because hand-registration is not that expensive. The two key factors are registering the right names and pricing them correctly. As my sales report indicate, I focus on low value geo names or names that refer to a specific product or service within a given city, state or region. After doing this for some time, I have now a clear idea of which keywords sell quickly and which don’t, as well as which cities might mean hot sales.

My focus on this post is not keywords, but pricing. This is a pattern I have seen often enough in domain investors who attempt to sell hand-registered names. A domain investor registers a few decent names (ex. MiamiGoldBuyer.com, PhoenixDoors.com, etc.) and then contacts potential buyers attempting to sell each name for $1,500. He receives either a negative response or no response at all and then the domain investor arrives at the conclusion that this doesn’t work.

Have in mind that in my perspective the two names listed above are decent in the sense that you can easily flip them for a few hundred dollars. Forget keyword search, forget age, and forget CPC. Those rules do not apply to this particular game. The fact is that both MiamiGoldBuyer.com and PhoenixDoors.com have a list of small business owners who would like to own them. That is all that matters.

But, going back to prices. The key to flipping hand-registered geo names quickly is to price them in a way that it would be hard for end-users to reject. In other words, to speak the language of small business owners when it comes to pricing. Let me illustrate it this way. Now that I am also into numeric names, if you try to sell 76888.com to me for $5000, there is no way I could buy that name from you. However, if you ask for $100, that is an offer I can’t reject. So, I will buy it immediately.

The point is that when it comes to pricing, there is a melting point. You have to present the hand-registered names at a price that becomes hard to reject in the eye of end-users. You must find the balance between profit and expedited sales. In my opinion, for the two examples I gave (MiamiGoldBuyer.com and PhoenixDoors.com), the balanced and appropriate price tag is $250-$500.

Again, this is if you really want sales to happen. If you plan to sit on the names and ask for $1500, that is fine. But I doubt you will sell them before renewing them for a few years. And, most certainly, they will never sell. So the question is $400 now or $1500 never.

 

[bigdomainer]

Good advice, especially for me as a noob. Thanks!

 

[JamesCrew]

A great informative post mate.

I recently started sending emails for couple of my Geo names. And my problem is that I can't help myself but to price my Geo domains aggressively.

Question: I agree with your points but other than being satisfied with the profit and liquidity of such domains, how can I ensure that I am not leaving money on the table? It's the guilt that makes me price domains fanatically high, lol

Thanks,

PS: I recently registered a landscaping domain. What would be the best price tag in your opinion and what metrics should I consider while pricing?

 

[TheWatcher]

@JamesCrew

If you think "not leaving money on the table" for every domains you own. It will be harder for you to sell your domains.
IMO if I have an offer with good return of my investment. It's sold and move on to the next domain property to sell.

 

[JamesCrew]

@JamesCrew

If you think "not leaving money on the table" for every domains you own. It will be harder for you to sell your domains.
IMO if I have an offer with good return of my investment. It's sold and move on to the next domain property to sell.

Got you mate.

I got a bit carried away there. I should have mentioned that for niches that are evergreen. What do you think would be the best pricing range for domains in such industries. Niches like and related to: lawyers, dentist, home improvement, car rental and etc.

Thanks,

 

[RogueWriter]

Just as an aside, from a buyers perspective, there is a domain I would like to own. I don't need it, it would just be a nice addition to complement an interest that I have. Once a year, for the last 10 years, I have contacted the owner with an offer of $250. I state that my offer will never increase, I don't need the domain, I would just enjoy owning it. The domain itself is not a product domain or a geo, and holds no brandable worth that I can see. The domain owner has increased the sales price over time from $1,800 to roughly $3,800. The domain will never, ever sell, but he could have cashed in for $250 a decade ago and moved on. The op makes a nice point and frankly I need to revisit my pricing structure for a lot of my domains.

-Shrugs-

 

[TheWatcher]

Got you mate.

I got a bit carried away there. I should have mentioned that for niches that are evergreen. What do you think would be the best pricing range for domains in such industries. Niches like and related to: lawyers, dentist, home improvement, car rental and etc.

Thanks,

If you receive demands on your domain property, then you can set your own price range. If no one bother to make you an offer, you need to check if you really need to keep the domain or let it expire.

I have some domains, many express their interest. There is a demand so I set my price.
And I have domains that doesn't have any offer, when I receive one .. it's sold.

Re-read Infosec3 post above for a good strategy.

 

[Mike Y]

yeah I'd like to know about metrics too, what do you consider before regging?

Another question - do you include similar domain sales history when you're reaching out the end user ?

 

[Banezer]

Nice info.
Thanks @ infosec3

 

[Banezer]

one question.

Do you include price on your first mail to an endusher?

Please answer this question.

Thanks

 

[infosec3]

one question.

Do you include price on your first mail to an endusher?

Please answer this question.

Thanks

If it is under $500, yes, I do include price.

 

[iowadawg]

This should make a bunch of domainers mad.
The ones that too frequently post domains for sale here and want unrealilstic prices.
Or those that put domains up for appraisal and then get mad and start explaining why their domains are worth ten to one thousand times the low appraisals given.

 

[DomainVP]

I think this is a great post, and it is very well thought out.

If you want to keep a liquid portfolio, you do exactly as @infosec3 has instructed.

 

[Omar Negron]

Again, this is if you really want sales to happen. If you plan to sit on the names and ask for $1500, that is fine. But I doubt you will sell them before renewing them for a few years. And, most certainly, they will never sell. So the question is $400 now or $1500 never.

Great advice.

Always have a realistic price point for your domain name with a ROI you will be satisfied with. Most people say 10X but it all depends on what price your comfortable selling at.

Good post.

-Omar

 

[discobull]

So the question is $400 now or $1500 never.

Okay, so what's the answer???

 

[TheWatcher]

Okay, so what's the answer???

That's for you to decide, will you accept $400 now or $1500 never?
I hope your answer is to accept $400. That's money in the bank.

 

[discobull]

That's for you to decide, will you accept $400 now or $1500 never?
I hope your answer is to accept $400. That's money in the bank.

I was kidding.

 

[Grego85]

I just went through a wave of geo name sales attempts but didn't hear anything back on any of them. I was planning on selling each in the 100 - 500 range but I did not include the pricing in my sales emails. Perhaps I will try again with the prices included.

Thanks for this info, it is very much appreciated!

 

[infosec3]

My thinking on this is that, given the endless list of overpriced names, if your initial email doesn't have a price, the potential buyer may assume you are trying to get a few thousands from him. Therefore, he (or she) might not bother to respond. A realistic price on the first contact increases the response rate and the probability of closing the deal.

 

[garptrader]

Yes, there is a wide price gap between what companies spend on normal business expenses - IT costs, marketing/advertising, legal & other professional services, travel, etc and what they are willing to spend on a domain for their business which will allow them to promote their products and services.

As long as you can continue to replenish inventory and are producing thousands of dollars monthly in sales, great!

I may have overpriced some geo real estate domains. I once had several real estate agencies express interest in a large city geo real estate domain but were not interested in paying $XXXX for it. But how many more real estate geo domains with several million inhabitants are you going to find once you sell yours for $250? A skyscraper in the downtown area of that city was built at a construction cost of $200 million.

 

[pablohc86]

@infosec3 when you contact enduser for offer them Geo domain do they have a website or you dont' care about this??

 

[infosec3]

The potential buyers I contact generally (if not always) already have a Website. I never contact other domain investors.

 

[infosec3]

Yes, there is a wide price gap between what companies spend on normal business expenses - IT costs, marketing/advertising, legal & other professional services, travel, etc and what they are willing to spend on a domain for their business which will allow them to promote their products and services.

As long as you can continue to replenish inventory and are producing thousands of dollars monthly in sales, great!

I may have overpriced some geo real estate domains. I once had several real estate agencies express interest in a large city geo real estate domain but were not interested in paying $XXXX for it. But how many more real estate geo domains with several million inhabitants are you going to find once you sell yours for $250? A skyscraper in the downtown area of that city was built at a construction cost of $200 million.

I appreciate your points, and your question is, of course, very valid. But have in mind that, as stated on my post, I am dealing here only with low value hand-registered names. What I have discussed here does not apply to really good names, like PhoenixApartments.com or NewYorkApartment.com, for example. I would never sell such names for $300.

Once you have done this for some time, you can make a distinction and not compromise with certain names. The main point is that the huge majority of the names you are able to hand-register are only worth a few hundred dollars. That is precisely why they are available for registration.

As I have explained on other posts, once in a while I also sell names for nice four figures, but those are the exception. The rule is that I do not price most of my hand-reg. in the thounsands and that is why I sell many of them quickly.

 

[Jen-Sin]

This thread should be in the blog section.

Thanks @infosec3

 

[main]

I enjoyed infosec3's video presentation. He has a different style of investing than me, but it is nice to get a different perspective. My immediate thought was that he is pricing his domains too low but he is pricing to move domains in volume, fast.

One important thing to note, I would only advise this style if you are actively doing outbound marketing like infosec3 does. Renewal fees would eat you up if you're only a passive investor.