While I’m a big fan of the concept behind “shooting for the moon,” when it comes to domain investing, I’m also a fan of cashflow. Where we sit, right here, right now, in Q3 of 2020 it’s more clear than ever that the action is in the sub-$5k range.
Every single day Twitter is buzzing with investors announcing sales, here’s three from the past 24-hours:
A lot of the domains that are sold for under $5k are listed with a BIN price and as we’ve seen over the years, BIN prices usually mean more liquidity. That being said, it’s the BINs below $5k that I think, and the data shows, is where buyers can usually make a decision themselves without requiring a lot of back-and-forth or internal approvals.
Logan and Jason, two domain investors that are great at moving names and keeping cashflow going strong made this point as well on Twitter this week:
I like what Logan says here, “only top tier domains are worth negotiating over.” Jason echos this when he says “BIN only under $5k with no Maker Offer option.”
The reality is, while you might think negotiating can help turn a $2,500 into a $7,500 sale if you really work it…the reality is, a buyer might never reach out in the first place, it’s the BIN that draws them in.
I’ve gone back-and-forth on the whole “to BIN or not to BIN” concept and recently moved some domains that I had listed at “Make Offer” to BIN and made a $4,500 sale a few days later. While it could have been a coincidence, it did make me think more about what Logan and Jason are saying when it comes to BIN.
All that being said, and setting the BIN discussion aside for now, there’s no doubt that below $5k is where the action is today in the domain investing world. Of course, don’t confuse what I’m saying here because I know someone will. I’m not saying everyone should price their names below $5k, that would be crazy. What I am saying is that you should have some segment of your names priced below $5k and maybe, like me, you’ll want to dip your toes more in the BIN waters.
Congrats to all the domain investors who sold names this week, Twitter has been buzzing with sales, these are exciting times for all of us, there really has never been a better time to be a domain investor!