How Do You Put a Price On a Domain You’re Selling?Posted: December 5, 2011
The dilemma many people find themselves in when they’re out to sell a domain is how to price it. You might think you need an appraisal to figure it out. In fact, pricing a domain is less about what it’s actually worth and more about other factors.
First off, keep in mind that there is no single value for any domain. The value of a domain is always a range, and it’s impossible to determine the exact range. Many domains that you might not even register others might pay thousands for. Our post “How Much Is My Domain Worth?” goes more into this and illustrates why we don’t give value opinions of domains when people ask.
Realize that even if there was an appraisal out there that accurately gave the value of a domain, it would give a range, not a single value. Aside from different viewpoints on a domain’s value, a domain is simply worth more to someone who would build a business brand on it vs. someone looking to resell it.
On top of that, you should not have simply one price for your domain. That may sound weird, but consider that most sales involve some level of negotiation. Having only one price means no possibility for negotiation, which limits your ability to sell the domain. At the very least, you should have an asking price (what you’d ideally like to get) and a “rock-bottom” price (the lowest you’d accept).
What can help you determine your asking and rock-bottom prices?
1. Look at similar sales
You can use a few different resources to look up similar domain sales. You won’t be able to figure out exactly what your domain is worth, but it’s a starting point to understanding what may be considered reasonable to ask for your domain.
2. Look at similar domains for sale
Afternic and Sedo have millions of domains for sale, many that are priced out. Bear in mind sellers unfortunately price their names much higher than they could ever hope to sell. Despite that, you can get a good idea of what’s out there similar to your domain and what price expectations are. Consider if you list your domain on those marketplaces that pricing it competitively may help it sell.
3. How much do you need the domain?
There’s a saying that “everything is for sale for the right price”. The domain you’re selling could be one that you’d only sell if you got an offer you “couldn’t refuse”. On the other hand, it could be one that you really couldn’t care less to own anymore. Understanding your own need for the domain will help you understand the lowest you might accept for it.
4. How much do you need the sale?
A dollar can be worth much more than a dollar in certain circumstances. If you have an absolute need for a certain amount of money, then you may be more open to sacrificing some of the sale price to help get the domain sold sooner. If you have no immediate need for money, then you could choose to comfortably sit back and keep the price higher.
Consider that the highest sales are to motivated buyers with deep pockets who feel they absolutely need your domain. Don’t price it higher than what you believe such a buyer would realistically pay, or else you’re admittedly pricing it out of sale potential.
5. How replaceable is the domain?
If the domain is one you’re using or intending to use, could you easily find a replacement? If not, then don’t shortchange yourself too much on the price. You don’t want to get into a position where you need a domain and none of the most viable options are for sale. Consider also that the buyer could be in that same predicament and may be willing to pay more for your name.
6. What could you do with the sale proceeds?
If you had $X money today, what could you turn it into in a month or a year? Look at how you might reinvest the money. Lowering price to ensure a sale today might help you get the amount you wanted for the domain or more in the not too distant future, whereas you might never get that much for the domain.
7. What does your gut tell you you’d accept if you had to?
Sometimes, this is what it all boils down to. Your gut/instinct is a powerful force and ultimately leads to many decisions. What could you live with accepting for the domain? If something comes to mind, consider using that for your rock-bottom price.
8. Are you comfortable with being flexible on pricing?
You don’t want to have 1 price, but you should appear like a complete pushover either. If a buyer feels they can keep getting your price down, they may stop raising their offer. But how flexible do you want to seem? You may only feel comfortable giving an initial price and then one counter that would be your final offer. In that case, your asking and rock-bottom prices may not be far from each other.
Even with all that, you may still feel not completely sure what to price your domains. You would not be alone there. Evaluating and pricing domains is less about information/knowledge and more about experience. Still use information to guide yourself to a more informed pricing decision, but realize that ultimately it will come down to a decision, not an “answer”.
At Domainate, we can help you get your domain sold. We offer consulting services to help you sell your domain yourself with direction on what to do, and we also broker some domains that meet our specifications. Contact us if you would like us to help you get your domain sold.