I’ve said it many times before, but it never hurts to say it again. What makes the domain industry truly unique is the number of experts who share their advice for free. Rick Schwartz is inarguably one of the most successful domain name investors in the world, and when he came back on Twitter last year and started sharing advice, me and many others were listening, and still are.
One of the best videos Rick has put out is about how so many domain name investors are under-pricing their domain names. In the video he makes a good point – business owners have a lot of expenses and even the sign for their business could cost $20,000+ so a domain name, the home for their brand online, should be worth a lot to them.
First, stop what you’re doing now and watch this video, it’s two minutes and seventeen seconds long and is absolutely spot on. Okay, now back to the topic of my post.
A domain investor who has been in the industry for seventeen years shared his biggest sale yet, a three word .com – PlantToGrow(dot)com for $24,500 through Afternic. The investor shared the sale with the community on NamePros in this thread, and gave special thanks to Rick for his advice in the video I shared above. Here’s a bit more about how this investor changed his pricing strategy over the last year:
I’ve been buying and selling domains for over 17 years. Prior to August, I’d been selling about 60-70 domains per year to end users, but last year I revised the prices on about 30-40% of my domains (see below). The reason I increased pricing on many of my domains was because it really felt like I was underselling many domains and leaving too much money on the table.
While this has been the second 5 figure sale since August and my average sale price is much higher than in prior years, my overall sales have not really been higher.for the last 12 months as the higher prices on the top 30-40% of my names have likely decreased the quantity of sales. Maybe I’ll try to fine tune this over time to see if I can achieve the right balance.(Source – NamePros)
As you’d expect, the quantity of sales would decrease as prices increase, but with a higher average sale price, making the same amount of money while maintaining more of your assets is a win-win IMO.
I find myself adjusting prices on my domains all the time and this definitely gives me some food for thought. Of course there’s a balance, and everyone has a different portfolio but it does make you think about how much money you might be leaving on the table.
Huge congrats to the seller, great name, great price and good insights on pricing from Rick to bring this all together!