The Great Debate: Selling Domains – Fixed Price vs. Make Offer

Yesterday I wrote a post about flipping a domain for over 300 times what I paid for it at a fixed price through Afternic. While you can never be unhappy with making over 300x your initial investment, in this case, I could have made a lot more since I had a buyer ready to buy at a much higher price.

This brought up the topic of listing your names at a fixed price vs. make offer. For years I have been a fan of listing your domains at a fixed price, however setting this price above what you think you could get for your domain. So if you had a domain you wanted to sell for $1,000, listing it for $2,000 or $3,000. While this might decrease your chance of selling it, I always feel that if the right buyer comes along, they’ll pay that price.

I don’t recommend listing every single domain in your portfolio at a fixed price, but if you’re like me and have close to 1,000 domains, you probably have about 900 that make sense to do this with based on my own experience. I keep my best names at Make Offer since I wouldn’t let these go for anything below the mid-five or low six-figure range.

I’ve stuck with this strategy for years and it’s helped me build a six-figure business in the domain space. Just to re-iterate, I don’t list all of my domains at a fixed price, but I do list most of them and the price I assign is typically over 100x what I paid for the domain which, in my opinion, is a price you should be happy with most of the time.

All of this being said, I am only one person, and I never think that my way of doing things is the only way. On top of that, I am always learning and tuning my own strategy and keep my mind and business very open to change so I’d love to hear what’s worked best for everyone else.

That’s my two cents, now I’d love to hear yours. Comment and let your voice be heard!

{ 9 comments… add one }

  • fatih March 23, 2013, 8:11 am

    Hi Morgan,

    My strategy is a basic landing page,no parking to be sure i am not giving base for a UDRP and wait for the buyer to come.I apply this to all my domains whether i think it is worth six figure or four.I do this to adapt myself to the changing circumstances.This gives me the flexilibity to ask any price i want based on my current financial situation.

    I rarely had losses but one has to accept low profits from time to time also.As they say a business never fails because it makes a loss it fails from the lack of cash flow.

  • BreakingNewsBlog.Info March 23, 2013, 8:45 am

    I’m for Fixed Price, it’s better and clear

  • @Domains March 23, 2013, 9:37 am

    Nothing at fixed price unless you want to dump it or fire sale it. You never know when one of your domains will trend.

  • Joe March 23, 2013, 11:13 am

    As I wrote today on Jason’s blog, I’ve found that the best solution overall is the ‘make offer’ option with a price specifying the range you’re willing to sell the domain in. This has at least two advantages:

    – you don’t need to be constantly worried about domains that you let drop but forgot to remove from Sedo in case they’re bought (I had that happen once but I heard of people who have experienced it several times)

    – you have a little room for negotiation

    OK, people who want to buy a domain right away, may decide to skip it, but I found that:

    – if your BIN is (even a bit) higher than what buyers are willing to pay, which is very common these days with such a depressed economy, they’ll will still skip it.

    – those who really like it, will still submit an offer

  • Oscar March 23, 2013, 12:34 pm

    Great couple of posts Morgan. I think that you’ve made a very good point for both cases. Most people have to consider the fact that not all investors have all the gears of their business running smoothly (yet) and need the capital to get off the ground and get more names. Sedo and Afternic have both made strong cases for fixed price names over make an offer and i think that shows that its all about what your situation is. Quantity over quality sales. If i’m trying to raise funds quickly, i’d sacrifice the negotiation process for a quicker sale. I’m sure that most of the big sales that we see come from negotiations rather than fixed prices. This is just MHO.

    Either way, keep up the great job Morgan. I always look forward to hearing about your going ons and look forward to seeing you again at TRAFFIC.

  • Morgan March 23, 2013, 4:46 pm

    Great feedback everyone, so interesting to see all the different opinions. At the end of the day I think we all know the biggest sales will be made directly to end-users while pushing back on them to make the offer. However, like any balanced business you need a balance of nice big juicy sales and little consistent sales to keep cashflow coming in.

    Keep it coming, great discussion and there’s no right answer, only great feedback and experiences to share!

  • AbdulBasit Makrani March 24, 2013, 12:44 am

    I agree with @Domains. I follow the same pattern.

  • John March 24, 2013, 12:05 pm

    With regards to DreamVodka … It sounded like you thought it would be a good name to actually develop and/or for a brand. So, why list it? It’s a brandable and those names usually have a zero value until someone has an interest. Then they can become Home Runs.

  • John March 24, 2013, 12:07 pm

    Also, do you know if who you were talking to were the ones who bought the name?

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