Argument Against BIN Pricing
Most domain brokers and domain name marketplaces encourage their sellers to set buy it now (BIN) prices for their domain name listings. They correctly cite the higher sales rates for the BIN names as a reason for sellers to list domain names with BIN prices. While this is true, I don’t think it always works to the benefit of the seller to use BIN pricing.
Let’s say you bought or hand registered 50 average to below average “Western” 4 letter .com domain names a few years ago. These names, which now may be considered “Chips,” have the letters Q, X, W, and Z mixed within them. By US and Western standards a few years ago, these names generally weren’t anything special and could be had for registration fee or a bit more. If you decided to listen to the advice of domain marketplaces and set “aggressive” BIN prices of $750/each, you would have sold all 50 names at some point in the last several months. That once aggressive pricing is now considered a steal.
Before the last several months, I can’t recall seeing fast moving trends across wide swaths of names like we have seen. There have been quite a few “buy outs” of specific types of domain names that have driven up prices. People who had buy it now prices on their names may have undersold them because they weren’t monitoring these trends. Some might say they should be happy they got the prices they wanted, but I am sure many left money on the table.
Buy it now pricing is better for buyers because it reduces uncertainty. The buyer doesn’t have to worry that the seller will jack up the price once a negotiation begins. On the flip side, it can hamper the owner’s ability to sell domain names for the current market value, unless the prices are adjusted regularly. Constantly adjusting BIN prices seems like quite a bit of work.
I’ve never really been a proponent for setting BIN pricing. I feel like a buyer’s needs and a marketplace’s needs can be divergent when it comes to this topic. The crazy domain market in 2015 (and even 2013-14) really illustrates why setting BIN prices might be a bad idea.
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