When Pricing for End Users, Leave Room For a Concession

In almost all of my domain deals – both on the buy and sell side, a negotiation has produced a better sales price for a domain name. When I am buying a domain name, I will almost never pay full price, and on the sell side, I almost never sell a domain name for my asking price. This is important to keep in mind when pricing your domain names.

When I am pitching a domain name for sale, I know that a buyer is going to want a price or term concession to close a deal. I hardly ever close a deal for my exact asking price, and that is okay (unless it’s priced to move on my blog or other domain venue where the price is more geared to resellers and is therefore more firm).

Going in to a negotiation with an end user buyer, I know the buyer is going to try to get a better price, and I price the names accordingly. Generally speaking, I will ask about 10% higher than I think the name will sell for, knowing that most buyers will offer less, and I hope to meet somewhere between the offer and my asking price. While I may not get the exact price I originally set, if I get close to it, I will be happy.

Similar to home sales, where the buyer has an ideal price and an acceptable price, I tend to price my domain names with this in mind when selling to end users. If the price is too high, the name is not going to produce an offer because buyers think you’re unreasonable. Price it too low and you’ll leave money on the table. Price it right, and you’ll sell it.

Elliot Silver
Elliot Silver
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 closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

2 COMMENTS

  1. Elliot—
    Your well-written thoughts and posts are very helpful. Thank you so much—-I also like the Articles of Interest shown underneath your most recent posts for reference—-looks like they are a new feature on your blog.

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