Mike Mann Shares Results of A/B Price Testing
You’ve probably seen Buy Domains price its domain names to end with the numbers 88. Whether the domain name is $4,088 or $40,088, almost all of Buy Domains’ priced domain names have an 88 at the end. That was most likely the result of Mike Mann’s testing from when he owned the company.
Yesterday on Facebook, Mike shared some interesting results from A/B price testing on domain names listed for sale at Domain Market. With his permission, I have shared the information with you here:
Price Point # Sold Revenue Generated
- $250 31 $7,750
- $300 29 $8,700
- $400 17 $6,800
- $450 10 $4,500
- $600 17 $10,200
- $2050 3 $6,150
What this indicates to me is that the $600 price point generated the most revenue for the company, despite not being the level with the greatest number of sales. Obviously fewer sales are required with a higher price point compared to the lower price. Testing like this can help Mann’s company determine the optimal price point for his non-premium domain assets that sell every day.
One interesting thing to me is that there weren’t any tests for pricing between $600 – $2,050. Mike has that covered as he intends to do an A/B test between the $600-700 price range. Should the results be similar, he can continue to increase prices until the revenue number drops off.
Having a large portfolio allows Mike to do testing, and his knowledge sharing can help all of us. We should keep in mind that every domain name asset is unique and the potential sale price could be greater if it was priced after an inquiry rather than listed with a buy it now price, depending on the buyer.
It is interesting that Mike abandoned the 88 pricing and hasn’t adjusted to the popular 99 pricing either. I asked him, and he said, “I dont do 88 pricing because that was my TM for BuyDomains.com, dont want to copy we have tried other test prices but picked that array randomly and now have focus for more tests go for it.”
I wouldn’t be surprised to see continued testing, and hopefully Mike will share his results. If he doesn’t, I am sure it won’t be too difficult to find considering his company owns hundreds of thousands of domain names.