A Comment So Good – I Had To Post It!

I recently wrote a post about why people were having liquidity problems. I brought-up three main issues that is oftentimes holding people back. These are:

  1. Crappy Domains
  2. Unrealistic Pricing
  3. Not Actively Selling

I’ve been getting a very high volume of email from people with crappy names and crazy prices so I finally thought it was time to write a post like this. If you missed it you can read it here: Having Liquidity Problems? There Are Plenty Of Buyers – Here’s Why You Might Be Missing Them!

There were a lot of great comments on this post but one stuck-out and was so good that I decided to publish it on the blog for everyone to read. The comment is by Rob Sequin, a well known Domainer and Broker. I’d like to give a huge thanks to Rob for taking the time to write such an excellent comment and I hope all of you enjoy!


GREAT post!

1. I get emails and phones calls many times a week from people asking me to broker their crappy names. I can tell in one minute whether I can help them or not.

The phone calls start out like “I’ve registered a couple hundred domains…” or something like that. I tell people if you’ve hand regged a domain in the past three years, it’s probably not worth anything. Either wait five years, develop it or drop it.

So, that addresses the crappy names part. You’re right, take a hard look at your portfolio.

2. If the domains are not crappy, which most are, then I ask about pricing. $100k for this $50k for that. I tell people speculation is out of the market and domain investors are either developing what they have or are selling their domains. VERY few domain investors are looking to buy domains.

So, then there are end users… it’s a long shot selling to end users to start but if your domain is priced over $5k, it’s a REAL long shot that you’re going to sell to end users.

3. Price your domains. For years I played hard to get by not putting prices on my domains. That works occasionally but this tactic puts off more buyers than it attracts. Also, no one wants to price their domain too low.

However, since my Sedo rep told me to price as many domains as I could with buy it now prices, I’ve sold about $8k in domains over a few months.

If you’re not going to develop your domains or don’t want to sell for whatever reasons, don’t price them. However, if you think you might let a domain expire within one year, price it at $1995, $1295, $995, $495 or $295.

Works for me.



Rob also runs http://SellingToEndUsers.com – a site that has his process for harvesting, qualifying and contacting end users. Thanks again Rob!

As always I welcome your opinions! Comment and let your voice be heard!

{ 9 comments… add one }

  • James September 22, 2010, 12:43 pm

    Great post and great comment.

    To share a little of my experience, I’ve been developing names for about a year now, and have been happily successful at it. In looking to expand I’ve approached many domainers looking to buy names only to be met with truly ridicules prices. I have a pretty good idea of what these names can earn and yet I’m often quoted in the $xxxx for names the would make a whopping $5 a month in first place on google with a 0.20 cent CPC.

    I’m slowly picking up some more names to develop, but there, to me, seem to be way to many domainers hunting for that elusive big sale and completely ignoring realistic pricing.

    No ones buying your names? Get realistic with your pricing. Your 5000 exact match .ORG name with 0.20 cent CPC is NOT worth $1500! At least in my opinion =).

  • Ace September 22, 2010, 12:46 pm

    Thank you Morgan. Somehow I missed that comment.

  • Uzoma September 22, 2010, 2:40 pm

    Very interesting read, but wrong.

    There’s no science to domain names. Brokers are over rated in this industry. They are just insiders trying to keep out competition. Domain Names should not be treated like stamp collection – “aged”, “rare” etc. That should only be for a niche market that solely relies on Google searches and CPC; however, if you are selling domain names for Businesses and end Users, that matters not.

    I remember when STOCK BROKERS held sway not many years ago. They pretended that one couldn’t pick and buy their own stock; they spoke in such exotic language as “rare”, “aged” and such B.S. until the internet came along and democratized Stock Picking. That singular act sent them packing, and they have populated this Domain big Markets such as Sedo and others. One looks at the domains sold for $XXXX at Sedo, and one says Holy Crap! So, your “rare” and “aged” could mean RARE AND AGED CRAP to me, or the end user. Open the door and let us in to sell our domains or one day, these Brokers will be sent packing again, to go bug another poor industry.

  • roddy September 22, 2010, 5:41 pm

    I thought the wait five years aspect was quite possibly correct regarding recently hand regged names it seems you need to go forwards these days to get anything for cheap …….and then wait , although i think some gems to be found , it could depend on how much you are trying to make ? if you reg a name for $10 and sell it for $30 a week later you have made your money back and twice more , you cant get that in a bank savings account

  • RH September 22, 2010, 8:20 pm

    I agree somewhat with Uzoma that anyone using any one standard formula is incorrect imo.

    There are plenty of names that don’t have 5000 exact and less than .20 cpc that sell for way more than $1500.

    This is a unique business, each name is unique. If it makes sense for Schilling to ask for $15,000 then it makes sense for Joe Noob to ask for $15,000 for the same name. If the noob is foolish then Schilling is foolish. It does not work differently for who you idol worship.

    Keeping your portfolio small makes sense starting out.

    Asking yourself a pre reg quiz will help.

    1) Why am I regging this name ? (Sounds cool is not a good reason)
    2) Who is a potential end user for the name ?
    3) How could I develop the name profitably?
    4) Are other extensions taken ?
    5) How is the competition for the name and the keyword ?
    6) Are there plenty of alternative names available for reg fee ? This could mean there is a cap on my asking price or someone will look somewhere else.

    Again IMO

  • James September 23, 2010, 12:27 am

    Uzoma and RH.

    I agree with both of you. I by no means meant 5k and .20 cents as a serious example. My point is there are so many people out there selling ILIKECAKEALOT.COM for $15,000, it’s ridicules. Of course there are plenty of brandables and catchy names, this is a complex business, it’s just filled with people quoting unbelievably high.

  • Uzoma September 23, 2010, 1:32 am

    Yes, James … your points earlier and the clarification at 12:27 am, are valid. I believe it’s a prudent advice to render, relatively speaking of course. It is however, tangential to the original post, which is where I have my beef. I have been frequenting various blogs trying to tear down the mentality that has got us in a runt.
    We see domains selling for hundreds of thousands of dollars, some at tens of thousands, and then, we are encouraged to sell at nickels and dimes. That is due to the structure. Who can tell me that they have never scratched their head in bewilderment, after looking at the list of Domains for sale at Great Domains or Premium Domains with Sedo, and mumbled “Hey I’ve got a domain better than that, how did that one get in and not mine?”

    That is what Brokers are doing to the average Domainer. They pick winners and losers outside the market place. Go on, take a look at the list of Premium Domains at Sedo, and tell me what logic or pattern they are following to makeup the list of Premium Auction. The answer is NONE. The Brokers simply put whatever Domain their favorite Clients (Sellers) work out with them. And I don’t think it’s fair.
    I was hoping Latonya, Carrillo, epik, and all these smaller market places can be combined, and may the best Domain sell. I have no interest whatsoever on CPC. My domains are for people who have a Budget to launch their names, and build them out, promote them, Google or no Google.

  • ValueDrops.com September 23, 2010, 8:03 am

    wow, great info on SellingToEndUsers.com, thanks.

  • Abe September 26, 2010, 8:20 am

    great post… thanks.


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