How do you price your “priced to sell” domains?

Cashflow domains

There’s a concept that has been talked about a lot in the domain investing world over the years but I feel like it’s getting even more attention now. I’m talking about about segmenting your portfolio into a few buckets, two of which are “priced to sell” β¬‡οΈπŸ’° and “shoot fo the moon” πŸš€ 🌝

While the topic of this article is “priced to sell” names, I’ll start with “shoot for the moon” to get it out of the way. “Shoot for the moon” names are usually a relatively small segment of your portfolio that you price high, really high, like Cheech and Chong high.

 Cheech and Chong
(image source)

Own a bunch of one-word .COMs, why not price one or two in the $2M+ range, or heck go for $10M+ πŸ€·β€β™‚οΈ Two word .COMs you’d be more than happy to sell for five figures? Try six figure price tags on some. Have some .IO names you paid a few hundred dollars for, price a few of them in the $50k+ range. You get the point.

The challenge with “shoot for the moon names” is that you might not live long enough to see one of them sell, but if one does, it could be a life changing sale. I encourage investors to shoot for the moon on some small segment of names but to be realistic and okay with the fact that they might not see the sale come to light.

Domain investors segment the rest of their portfolios into different buckets, some have one or two more, others have five or six more. But there’s one additional category we all have – “priced to sell” names. These are domains that are, well, priced to sell, usually not at wholesale prices that other investors would buy them at, but at prices that an end-user wouldn’t have to think twice about. Note, plenty of investors do price their names at levels that other investors would buy them at but, I’d refer to this as “liquidation pricing.

For me, my “priced to sell” names are priced in and around the $1,500 range. My thinking is, this isn’t going to break the bank for anyone that is seriously looking at this as the primary domain name for their business…and at the same time it doesn’t leave too much money on the table since I also know that someone who can afford a $1,500 domain…could also buy a $2,500 domain without much grief.

How many domains I have in my portfolio that are priced at this level really depends on what inventory I’ve acquired that year and how much revenue I’ve already generated. In years where I generate more money from sales or brokerage deals I’ll often move some names out of the “priced to sell” category. In years where I’m falling behind, I might do the opposite and take some names priced in a higher range (but not shoot for the moon) and move them down.

I think every domain investor has their own rhyme and reason around when they decide to move a name into the “priced to sell” category, but the price point they pick is different. Okay, you’ve heard my answer to the question, now what’s yours?

{ 2 comments… add one }

  • AbdulBasit Makrani December 1, 2020, 11:33 pm

    1,988, $2,988 and $3,988.

    Reply
    • Morgan December 2, 2020, 7:12 pm

      Thanks for sharing @Abdul!

      Reply

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