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question Do Auction Platforms Typically Yield Only 5–15% of Full Value?

This is a general or domain name related question.

DBinSJ

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"The majority of buyers on domain name auctions sites are domain name investors (individuals who purchase domain names with the sole purpose to resell them for a profit), so you have to be prepared to sell your domain name at so-called 'wholesale' or reseller price levels, which are usually between 5 to 15% of the 'retail' [value] of a domain name."

To what extent, if any, do you think the statement above by Doron Vermaat (at https://thewebsiteflip.com/domains/how-to-sell-names/) is accurate?
 
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Biggie

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Hi

what's "accurate" for one individual, may not apply to another.

that's because....
since every domain is unique, then each domainers portfolio, will be unique.

it's important to note that,

if/when you list your name in an auction on any platform, that it may be subject to a "reserve" price.
that's reserve, whether it's $0 or $1,000 or higher, may determine the final selling price... if there are bids above that reserve.

those who submit their names to such auctions, accept the "risk" that their domain may sell below its "perceived value" for it.... while at same time, hoping it may exceed said value.

imo...
 

Anita

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Hi,

Good question and great answer by @Biggie. Oftentimes it also depends on what strategies the domainer is following. For example a relatively small domainer might want to see immediate profit of just 5x-10x on some domains to meet his/her renewal costs, irrespective of the potential retail price. Some of these domains might have great potential but might need longer holding periods while the domainer wants to sell them within a year of purchase. Bigger domainers get to profit from this strategy of others.

The buyer whether domainer or business person will obviously always try to buy for less so it might seem that most domains are selling for less. Its the domains which are "must haves" for more than one party that usually get good prices on auctions.

regards,
Anita
 

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