Selling a Domain

All you need to do is look at how good businesses sell products. It involves a few key attributes which can be universally applied:

  • Market Research
  • Liquidity Assessment
  • Cost Analysis
  • Product Appraisal
  • Marketing and Networking

These five essential points lead to the final three steps:

  • Lead Generation : You start finding potential buyers for your domains
  • Negotiation: Talks begin over the final selling price of your domains and some leads respond
  • Sale: Finally you will reach a bargain where you find the best value and the buyer finds it fit to pay a discussed amount for your domains. You make a sale!

So, what is the first step a seller must take to sell his or her product? It’s simple: Enter the marketplace where that product is sold. As far as domains are concerned there a several popular ways they can be sold. Some of the most popular domain sales channels are:

  1. Display a “Domain for sale” message and a contact form on your domain’s home page
  2. List them on Domain Sale sites such as GoDaddy, Flippa, Sedo, Afternic, etc.
  3. List them on Domain Sale Forums such as DnForum, NamePros, Inforum, etc.
  4. Hire Individual Brokers or Brokerage Firms
  5. Direct peer-to-peer selling

Before entering the marketplace of your choice and entering your first quotes you should recapitulate on every aspect of your domain once again. One key factor is that you should classify your domain according to various parameters. It helps in finding targeted potential buyers for your domain and trims the time lags. Some the most obvious categories can be:

  • Brandable domains
  • Keyword Domains (Which can be further classified based on the keywords involved)
  • Ultra-Premium Domains ( Like LL.com or LLL.com)
  • One Word Category Killers (Like Business.com or Sex.com)

6 tips for Quoting a Best Price for your Domain

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.