Welcome to the second article in my three-part series about pricing your domains. This section is going to be short and sweet but should not be overlooked. The most important thing to take-away from part two is that this is only part two of three. What I am suggesting here should not be used independently but only as a step in the process of understanding how to best price your domains.
The second step in pricing a domain is getting an estimate of what your domain is worth. The most important thing to realize about an estimate is that it is absolutely not what your domain will necessarily sell for – but it can give you some direction for your pricing strategy.
So in Part One you found comparable domain sales – now it is time to get two simple estimates. There are two places to get quick and dirty estimates:
This is a simple step but can help give you some good direction. Go on DNForum and see what the community thinks. Next go to Estibot – type-in your domain and see what Estibot thinks.
The most important thing to realize about this step is that these are just estimates and can oftentimes be far-off from what you can expect to sell your domain for. What this can do is tell you what kind of interest you’re likely to see in your domain.
Here’s an example of how to properly use this data. Suppose you submit your domains to DNForum and everyone says it’s worth “Reg Fee” – next you go to Estibot and it also says “Reg Fee”. Unless there is some traffic or revenue you’re not disclosing your domain will probably not sell for thousands of dollars – sorry!
Now suppose you go on DNForum and everyone says your domain is worth about $2,000 and Estibot says the domain is worth $4,500. You know your domain has some value to it – in fact it could sell for $50,000 to the right end-user for all you know!
The importance of this step is just getting an understanding for how much interest your domain will likely generate for an end-user. The next-step then is finding an end-user who will truly appreciate the value of your domain and thus pay a retail price – rather than a wholesale price which is what DNForum and Estibot are really giving you.
Many new domainers will go on Estibot – see an appraised value and think that is what their domain is worth. This is only one-step in the process! Stay-tuned for the Part 3 in the Pricing Your Domains series here on Domainvestors.tv!