Pricing Strategies

[discobull]

I'm wondering if anyone has suggestions on how to price domains when dealing with end users.

I've experienced a mix of successes and failures in my approach. Mainly, I've been selling domains directly via mailings. Typically I send out emails informing potential candidates that the domain is for sale. When I get a reply, it's typically along the lines of "how much?" I'm then put in a position of having to guess what number to ask. When the number is too high, I mostly get no reply. When the number is too low, I get an immediate yes, which makes me feel like I've left money on the table. When I've tried responding by asking for offers, it's always been low-balls.

I've tried determining pricing based on historic sales of comparable domains and I've also tried pricing based on the financial viability of my prospect but neither strategy has yielded great results.

I'm frustrated!

Any tips would be appreciated. Cheers.

 

[Biggie]

I'm wondering if anyone has suggestions on how to price domains when dealing with end users.

I've experienced a mix of successes and failures in my approach. Mainly, I've been selling domains directly via mailings. Typically I send out emails informing potential candidates that the domain is for sale. When I get a reply, it's typically along the lines of "how much?" I'm then put in a position of having to guess what number to ask. When the number is too high, I mostly get no reply. When the number is too low, I get an immediate yes, which makes me feel like I've left money on the table. When I've tried responding by asking for offers, it's always been low-balls.

I've tried determining pricing based on historic sales of comparable domains and I've also tried pricing based on the financial viability of my prospect but neither strategy has yielded great results.

I'm frustrated!

Any tips would be appreciated. Cheers.

you should have price or range in mind, prior to sending solicitations


also, if you don't ask for the price you want, you'll never get it

don't be afraid if a buyer walks.....if the name is good, either they will come back later or another buyer will.


pricing names based on the viability of your prospects is not the best option

names should be priced or have a price/range, irrespective of who the buyer is

then you wait for, or find the buyer who can afford your price

Good Luck!

imo...

 

[domaingeneration]

Since you're the one approaching a buyer, it's best you have an idea of
the price range you want. Research will be required. Find out how much similar
domains have been sold for. What's the current market situation in the buyer's
industry. Your cost (consider escrow fee as well) and the minimum profit you're
willing to accept.

Price it 25% or more higher to leave room for your negotiation. Respond quickly to
counter offers before they change their mind. It's easy to lose a domain sale when
sellers allow too much time for buyers to 'think about it'.

Hope it helps,
Alexander
Domain Educator
http://www.vhpy.com/motivated

 

[discobull]

Thank you both for your replies.

I guess the part I struggle with is the appraisal. Perceptions of value can sometimes be all over the place as can be historic pricing and I tend to feel like my prices are guesswork rather than solid valuations. For the time being, it's tough for me to take the attitude that I should hold on to a domain until my price is met when I'm doubting the legitimacy of my estimate. I suppose this is an area where experience is necessary and I'm just going to have to pay my dues until things become less murky...

Anyhow, thanks again for your input.

 

[Biggie]

Thank you both for your replies.

I guess the part I struggle with is the appraisal. Perceptions of value can sometimes be all over the place as can be historic pricing and I tend to feel like my prices are guesswork rather than solid valuations. For the time being, it's tough for me to take the attitude that I should hold on to a domain until my price is met when I'm doubting the legitimacy of my estimate. I suppose this is an area where experience is necessary and I'm just going to have to pay my dues until things become less murky...

Anyhow, thanks again for your input.

even an experienced domainer can struggle with pricing, but that's when you call on peers for assistance


you may have a price in mind, but a good critic can either see above or below your range


they may also see other avenues/uses you didn't consider


one problem with "historic' pricing is that, it's just that....historic.


some categories don't get as much interest or garner as much value like the past


doubt means lack of confidence.

if you don't show or convey confidence during negotiations that your domain is worthy of it's asking price, then how can the buyer be confident in their purchase?


and yes, you must pay your dues like every other domainer

 

[GoneSurfing]

Since you're the one approaching a buyer, it's best you have an idea of
the price range you want. Research will be required. Find out how much similar
domains have been sold for. What's the current market situation in the buyer's
industry. Your cost (consider escrow fee as well) and the minimum profit you're
willing to accept.

Price it 25% or more higher to leave room for your negotiation. Respond quickly to
counter offers before they change their mind. It's easy to lose a domain sale when
sellers allow too much time for buyers to 'think about it'.

Hope it helps,
Alexander
Domain Educator
http://www.vhpy.com/motivated

Good advise, thank you. Checking out your website now, very nice!

Smac

 

[domaingeneration]

You're welcome, Smac, thank you for 'liking'.

Pricing can be quite challenging - if the domain is worth thousand$
in your mind, spend more time in research before setting up your asking price.

You can also ask pros at DNF here for suggestions.

Sometimes you may simply google the term and see what results come up.
You maybe surprised the demand has suddenly increased due to news or fad.
Or, for some reason the domain may soon be outdated ...

"Secret": I use a free tool suggested at http://www.SuperAffiliateSpy.com (not related to domains)
to get helpful info.

Alexander
Domain Educator
Free webinar: http://www.tojv.com/cmf10891ph