Reaching a final selling price can be tricky. Suppose after all the research and analytics you found that your domain’s real worth is $500. Now do you sell it for $550, $600 or $1000? Well, it depends on your core marketing capabilities that whether you can sell something worth less for a lot more or VICE VERSA. However, some things can be kept in mind while reaching a final strike price to quote to your buyers.
- Include all costs: By all costs I mean each unit of time, effort and money that you have put into appraising a domain. These costs include the initial cost of buying the domain, the money spent on analytics and research, the time component which is devoted in this research. In many cases, people buy domains build traffic generating websites around them and then put up for sale. Such domainers must include the cost of putting up this website like content, marketing, optimization costs etc. It is important that you do not miss on any cost.
I monitor my costs by making excel sheets about each domain that I buy, research and renew. This way, I know exactly how much time, effort and money has been put into it. If all the costs come about to be $400 then there is no way I am selling the domain for less than that.
- Set the minimum profit margin: This always helps. Once you have a precise idea about how far you will go then selling becomes easier. For a $400 domain, I will keep my final strike price to be $650, ensuring that I make a minimum profit of $250.
- Keep room for negotiation: Negotiation is a part of every business deal. Fix a range in which you will be willing to negotiate with any potential buyer. For a domain worth $400 I can start the negotiations from $650 and come down fighting to $500. That is my negotiation range. If you start negotiating from $500 you will end up selling it for less than $450 (not always but often). Therefore always keep enough room for negotiation.
- See Past Sale Trends: There could be domain names similar to yours. You can use the tools mentioned above to find out the last price they were sold at. This can give you an idea about how much your domain can go for.
- Do not overprice your domain: As I mentioned earlier, not every domain is worth a million dollars. If your domain is worth $450 and you start quoting $2000 to buyers then you will have to wait for that one buyer who might pay $2000 but not today. It is essential to expect fairly to sell domains fast. Depending on your strategy of one big sale or bulk mass sale, you can choose. Selling domain at fair / lower price is easier and fast if its listed on buy now. But if you own a premium domain and you prefer to wait also look at your holding capacity.
- Be ready to fail and try again: Lastly, you should always be realistic. Not every domain you buy will be sold at a good profit within a week. You have to keep doing your research and keep looking for opportunities. If you get 100 leads over a domain name then assume that only 4-5 will be willing to enter into negotiations and of that only 1 will turn into a sale. Therefore, you always have to be on your toes and realize the opportunity to strike when it presents itself. Having unrealistic targets will only lead to failed business.