Important Factor When Selling to Domainers
When you are selling a domain name to other domain investors, I believe the most important thing to consider is the price. I frequently see good names come up for sale, but price expectations are far too high for the audience. Perhaps a domain name would sell for that price to a company who plans to rebrand and use it for their company, but realistically, end user prices will not fly with other domain investors.
Most domain investors want to buy domain names that will either generate revenue that can bring them a quick ROI, or they want to be able to re-sell the domain name at a profit sometime in the future. If the domain name isn’t generating revenue from parking or an affiliate deal, and the price is higher than the potential buyers think they can sell it for, they won’t want to take the risk, and the name will stay on the market.
Of course there is a risk that you will price the name too low, but this shouldn’t really be a consideration when a domain owner wants to raise capital by selling to another domain investor. Sure, you could be leaving some money on the table when you price a name lower than you might ideally like, but you should price it based on what you paid. I would personally rather have a quick sale at a slimmer profit margin than a sale that takes a long time to make at a heftier margin. Oftentimes when a domain name doesn’t sell quickly, other domain investors will avoid it, knowing a price ceiling has essentially been set.
If you want to sell a domain name, and your target is the domain investor audience, you should price your domain name accordingly.
Reach out to Elliot: Twitter | Google + | Facebook | Email