Get a Reality Check on Pricing via BuyDomains

Get a Reality Check on Pricing via BuyDomains

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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.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (7)

    Leonard Britt, CPA, CMA

    There is a clear disconnect when it comes to value perception between those who invest in domain names and those outside the industry. As a financial professional I am familiar with the expenditures of companies and how trivial a low $XXXX domain purchase is in the long run – if the domain is used as a brand or to promote certain products / services. However, it can be rather frustrating to spend considerable time marketing domains which one believes should be valued by an end user and yet see little willingness to pay for those domains (even though those outbound marketing efforts will result in SEDO offer page visits or “How much?” inquiries).

    August 21st, 2014 at 12:38 pm

    Andre

    Great tip Elliot. Thanks!

    August 21st, 2014 at 1:17 pm

    DonnyM

    Here is another tip. Never ever inquiry about one domain with these guys, Always inquire about 3 or 4 domains at once. If they know you want one domain name they will not budge to much. Also inquiry or do deal at end of quarter, or at the month end. Those guys need to make numbers just like any other sales commissioned agent..”) Think car dealership..

    Some stuff is so overpriced but sometimes they have a few deals that are fair.

    August 21st, 2014 at 1:35 pm

    kroc

    brilliant tips, everyone! :-) great outside the box thinking

    August 21st, 2014 at 3:12 pm

    Mark

    You’re missing one important point. The prices at BuyDomains are just asking prices and they will sell many for MUCH less. I’ve gotten a couple names from them for about 75% of the listed prices. So I don’t think they can be seen as reliable comparisons. I mean, just looking at a random name I saw there, do you really think anyone will ever pay close to $4188 for AbsoluteDVD.com? Likely no one would pay $50 for it.

    August 23rd, 2014 at 11:54 am

      Elliot Silver

      Yes, they may be willing to discount their pricing, but an end-user buyer might look at the price as a comparable.

      In reply to Mark | August 23rd, 2014 at 12:06 pm

    Surya

    It is a great tips Elliot, thank you. I just found three of my .org domains, has similar keyword owned or sold by Buy Domains in .net TLD, and it is offered at prices far away from Estibot appraisals. Like my LaptopCases.org which only appraised 510 $ by Estibot, but I found that Buy Domains just sold LaptopCases.net for 1,500 $ at Afternic. I just thought to list it at only 300 $ price.

    August 25th, 2014 at 2:35 am

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