Get a Reality Check on Pricing via BuyDomains
I believe that BuyDomains owns hundreds of thousands of domain names, and quite possibly more than that. Because of the size of the company’s domain portfolio, I believe the company uses custom algorithms to determine pricing for many of its domain names, and a great deal of their domain names have buy it now prices. I assume the pricing takes many factors into consideration, and their domain names are reflective of a market value for the most part.
Because BuyDomains owns so many domain names, I have noticed that they own alternative extensions for many of my .com domain names. This means that I am able to compare my asking prices with their prices to see if mine are in line, underpriced, or overpriced. I can refer prospects to their similar listings in the hopes that they either:
- Buy a domain name from BuyDomains and realize they need to upgrade to .com at some point
- Realize that my price is fair when compared to the price offered by BuyDomains for an alternative extension
I want to share two recent examples of how BuyDomains pricing can give me a reality check on my pricing.
1) I sent out a number of emails to prospects trying to find a buyer for a recent .com acquisition I made. There were six companies interested in buying the domain name, but nobody agreed to my asking price. Upon doing some research, I noticed that BuyDomains has the same keyword in an alternative extension at a significantly lower price. Perhaps this means my price is far too high and I need to reevaluate, especially because of the number of interested prospects.
2) A prospect inquired about a domain name I have for sale listed at $5,000. He offered me around half of my asking price, and I declined. After doing some research, I saw that BuyDomains has the same term in the .net available for right around his asking price. Knowing this, I believe my price is very fair, and I am going to stick to it in the hopes the buyer comes around and realizes this. I may even show him that his offer was less than what the alternative domain extension is priced at right now.
In the worse case scenario, the prospect sees the less expensive domain name and buys it. In a best case scenario, the buyer sees the comparable listing and buys my domain name. Regardless of what happens, I think looking at a portfolio owner like BuyDomains for some pricing guidance is a good idea.
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