How do you price your domains?

domain-name-pricing

It’s something I’ve been trying to improve for years now, stripping emotional attachment out of the equation and focusing on ROI when it comes to domain pricing. Since I started in the domain name world I’ve tried to sell domains for at least 10x what I paid for them. Compare this to any other industry on the planet and those would be ridiculous expectations but as we all know, domains are different.

Here’s the challenge I always run into. There are plenty of domains I paid $100 – $200 for that I get inbounds on but quote at $2,500 – $7,500 based on the name. Every time I do this I think to myself, “am I just preventing a sale and a 10x ROI because I feel like I could get a better price for a domain?”

Since I’ve sold my fair share of domains for 20x or more ROI I do know it’s very possible, especially when you’re looking at domains that you bought for a few hundred dollars. Hand regs are the hardest for me since I’m not interested in selling a domain for $100 – $200, and I’ve sold hand regs for $5,000 in the past so I know what’s possible.

The question I always ask myself is, should I focus on making sure I hit a specific ROI goal or should I keep going down the path of evaluating the price of each name and trying to get what I think is fair market value for each?

How do you price your domains? Comment and let your voice be heard!

{ 8 comments… add one }

  • Jeff Libert August 24, 2016, 10:13 am

    Long version: my experience and POV slants towards each domain being unique, understanding that markets and circumstances change / evolve / deteriorate (so stay current on the subject matter of your domains) AND, lastly, history of reported past sales informs / guides but is not determinative. (I read DNJ’s weekly reports and a few other reports, ever mindful that almost all of me personal sales are unreported and, I suspect, so are the sales of many other “Domain Goldrush” era (late 1990s) domainers. Frank S’s recent domain sale data dump may also be helpful, but the scale and changing of his operations has to be taken into consideration.

    Short version: it all depends.

    Most of what I acquired over the years I acquired with a minds to eventual development, but life usually intervens. Sometimes I may choose to accept an offer, abandoning the idea of developing a “unique address”, simply because I’m busy on other projects OR the influx of cash might be used to support a project in development.

    So, to directly answer your question, IF you have the time and IF the value of that time will be reflected in the ultimate outcome – a sale – then evaluate each domain on its own merit. However, if you are dealing in individual sales of domains for hundreds, not thousands, of dollars (I doubt you are) then, unless you are living in an emerging market, chances are that the brain cycles will be better applied to more profitable endeavors.

    Pleasure talking . . err . . monologuing . . as always, Linton.

    Regards,
    Jeff / a/k/a CrankyOldMan at DomainState (R.I.P.) and still Webwork @ WebmasterWorld Domain Forum (cranky old moderator).

    Reply
  • Eric Lyon August 24, 2016, 10:36 am

    Personally, I think that each domain should be evaluated for it’s full potential if you are a long hold game player. Sticking to a specific ROI goal is more of a short / quick flip game play. However, one should never put all their eggs in one basket. It’s beneficial to diversify and play both games at the same time. It can be challenging to decide which pile a domain should fall into at times, but I’m sure you can see the benefit of playing both hands.

    Reply
  • AbdulBasit Makrani August 24, 2016, 10:53 am

    To answer your question which is an interesting one, I have recently published an article related to that and it’s worth reading IMO – http://www.abdulbasit.com/domain-monetization/how-do-i-valuate-domains-and-set-an-asking-price

    Reply
  • Tony C August 24, 2016, 10:56 am

    Great question. Now with all the gTld’s the resale market has certainly changed. For me it changed drastically because I no longer see long, three plus word “.com’s” valuable any more. I have even dropped many long domains that I once had offers on (ie: AllYouCanEatPizza.com).
    For me I use this “Priority” Pricing rule.
    1) One Word .com’s
    2) One Word gTlds
    3) One Word gTld Hacks (ie: Craw.fish , Padi.cab)
    4) One Word Alt Tlds (ie: Maine.me)
    Don’t get me wrong there are so many things to consider within the above equation.

    Reply
    • Morgan August 25, 2016, 11:26 pm

      Thanks for sharing everyone and I like your “Priority” pricing rule @Tony

      Reply
  • Chris August 24, 2016, 11:24 am

    Estibot!

    Reply
    • Rod August 24, 2016, 12:51 pm

      Hell naw.

      I have ideas as to what type of business would want my domain when purchasing. Industry, local, national, or global. Is it an industry highly dependant upon web presence and marketing. Is it a dot com for a brand or multiple company names in a variety of industries. Is it a common word or phrase?

      Basically that along with whether there are better available alternatives dictates my valuation range.

      Reply
  • DNSal.es August 24, 2016, 11:35 am

    First KPI taken into account is the number of previous bids and their value.

    Second one is the “similar sales” search.

    Then how many similar domain names are in Alexa one million.

    Then how many keywords has Google indexed and what does it charge for their AdWords.

    One can weight in these KPIs and write a formula for the asking price. Or simply stick with ROI multiple.

    Also, start leasing domain names and as this can significantly improve the cash flow.

    Reply

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