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rlm
Bonfire.ca
I start at $5K minimum no matter how crappy the domain and go up into 6 figures based on individual circumstances.
And just because the .com sold for $3K, don't think that means can't get more for the .ca.
Of my last 4 sales, 3 were 2-word .CAs (one was a geo) and the average price was in the 5 figures.
My opinion is that if you're not willing to spend at least $5K for your domain/brand, then you're not very serious about your business, in fact I'd call it a hobby, not a business. I flat out tell potential buyers that the price is set higher to specifically ensure that the domain ends up with the right buyer, not just the first buyer that comes around that has $500 in their pocket. If you sell cheap, you have to sell a lot, and then you have to buy a lot. I say treat your inventory like the one-of-a-kind items they are, more like an art gallery than the dollar store.
I'd also rather have 1 sale at $10K than 10 sales at $1K. One obvious advantage is that you still have 9 other domains to sell rather than zero. And you can't get big sales unless you've got the determination to say "no thanks" to a lot of offers. I push the buyers and find their limit, sometimes I push too far and lose a sale, but my experience says it works out better for me in the end this way. In fact if they counter my initial price, I don't counter back by lowering the price, I counter back by offering a payment plan. And if they say they don't need a payment plan, then I say I guess budget really isn't the issue is it? Of course I say it as nicely as possible. Definitely be very courteous and respectful, treat them like business people. Lately, I've used chatGPT to remove the snarkiness of the replies I want to send, to something much more diplomatic and likely to lead to a constructive conversation.
Of course pricing depends on the domains you're investing in though. Maybe a better way to think of it is, get a good return, then slowly averaging up the quality of domain you re-invest in.
These are the multples I've sold my last 10 domains for (average hold time 7 years). Note that I didn't factor in holding costs, just the multiple of sale price vs acquisition price. 170x, 60x, 1000x, 123x, 83x, 385x, 138x, 138x, 435x, 160x
Obviously its easier to get a higher multiple on a cheap TBR domain than one you spend > $500 for. On the other hand, holding costs erode that multiple quicker on a cheap domain than on an expensive one.
That being said, I personally am not usually thinking of the ROI when I price, unless its a domain I spent a lot on to acquire. Sometimes I'm willing to take a smaller multiple to get out of domain I overspent on. Some investments are just better than others and time has a way of pointing that out. I'm mostly pricing based on the popularity of the word, its length, ease of spelling, memorability, connotation and brand suitability, comparable sales, independent valuations, etc, The more you do it, the more of a gut feeling you get for reading those signals and pricing accordingly.
And then of course there are the personal factors. If you're struggling to pay the renewals, do what you gotta do to make a sale. And when you do make a sale, maybe pay for some renewals in advance. It never hurts to be prepared for a bad year.
And just because the .com sold for $3K, don't think that means can't get more for the .ca.
Of my last 4 sales, 3 were 2-word .CAs (one was a geo) and the average price was in the 5 figures.
My opinion is that if you're not willing to spend at least $5K for your domain/brand, then you're not very serious about your business, in fact I'd call it a hobby, not a business. I flat out tell potential buyers that the price is set higher to specifically ensure that the domain ends up with the right buyer, not just the first buyer that comes around that has $500 in their pocket. If you sell cheap, you have to sell a lot, and then you have to buy a lot. I say treat your inventory like the one-of-a-kind items they are, more like an art gallery than the dollar store.
I'd also rather have 1 sale at $10K than 10 sales at $1K. One obvious advantage is that you still have 9 other domains to sell rather than zero. And you can't get big sales unless you've got the determination to say "no thanks" to a lot of offers. I push the buyers and find their limit, sometimes I push too far and lose a sale, but my experience says it works out better for me in the end this way. In fact if they counter my initial price, I don't counter back by lowering the price, I counter back by offering a payment plan. And if they say they don't need a payment plan, then I say I guess budget really isn't the issue is it? Of course I say it as nicely as possible. Definitely be very courteous and respectful, treat them like business people. Lately, I've used chatGPT to remove the snarkiness of the replies I want to send, to something much more diplomatic and likely to lead to a constructive conversation.
Of course pricing depends on the domains you're investing in though. Maybe a better way to think of it is, get a good return, then slowly averaging up the quality of domain you re-invest in.
These are the multples I've sold my last 10 domains for (average hold time 7 years). Note that I didn't factor in holding costs, just the multiple of sale price vs acquisition price. 170x, 60x, 1000x, 123x, 83x, 385x, 138x, 138x, 435x, 160x
Obviously its easier to get a higher multiple on a cheap TBR domain than one you spend > $500 for. On the other hand, holding costs erode that multiple quicker on a cheap domain than on an expensive one.
That being said, I personally am not usually thinking of the ROI when I price, unless its a domain I spent a lot on to acquire. Sometimes I'm willing to take a smaller multiple to get out of domain I overspent on. Some investments are just better than others and time has a way of pointing that out. I'm mostly pricing based on the popularity of the word, its length, ease of spelling, memorability, connotation and brand suitability, comparable sales, independent valuations, etc, The more you do it, the more of a gut feeling you get for reading those signals and pricing accordingly.
And then of course there are the personal factors. If you're struggling to pay the renewals, do what you gotta do to make a sale. And when you do make a sale, maybe pay for some renewals in advance. It never hurts to be prepared for a bad year.
rlm
Bonfire.ca
Thanks Eby. It is really hard for me to let domains expire, simply because I see that I routinely make good sales on unassuming domains, ones I bought for minimum or low bid tbr prices or even hand reg, etc. Only one of my last 10 completed sales was something I spent more than $100 on. So that's why I like to renew ahead when I have a good sale - I don't have to make those difficult decisions about dropping too many domains.
Surprisingly enough that is word for word what I have done as long as I remember.
Again, I said very similar words to a members a while back, in fact I think I even posted them.
I bought my very first business domain I actually used for 5k and managed to hand reg the second one based on luck but would have begrudgingly paid again had it been necessary.
One of the things that surprises me the most is how many domains I have sold for 5k that ended up not being used and are just hanging in limbo, in fact the new owner does not even change name servers and such. One I reported was mymaple.ca for instance. The guy paid 5k but it's still just sitting in limbo.
Goes to show 5k is not a huge ask if people can pay it and then just let it sit in nowhere land.
I see it in my WHC control panel and the seller has very little choice in the matter.
CIRA mandates the info has to be accurate and the seller can't quickly change it because it would lock the domain for 60 days.
The buyer then updates the information and yes he sees the sellers previous info.
The only way around this is to have a legitimate company or a numbered company as the registrant which could hide the owners info, but from my experience that is easily traced so you're really not hiding anything.
Anyone entering improper information can get reviewed by CIRA if they get reported.
marco
Member
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I am asking as what happens if a buyer buys the domain and leaves your name on it
rlm
Bonfire.ca
No platforms - just basic landers, primarily the bodis lander, but some on my own landers. That's all you really need, just a way for potential buyers to contact you. I've tested platforms in the past, but most domain buyers aren't browsing, they know exactly what they're looking for, so a platform doesn't add value, just losing money to their commissions. I can count on one hand the number of times I've sold a domain on a platform where the domain wasn't being redirected there. And they were all cheap sales so it wasn't anything to get excited about. So sales can come from a platform, but its just so rare that its not worth the commission on every other sale, IMO.
However, for completely made up brandable types of domains, then I can see how people might want to browse those and see what strikes their fancy. But I don't really invest in those. The closest I come to that would be owning slight spelling variations on a real word.
rlm
Bonfire.ca
Yes, this happens. Mostly these are people who are oblivious to the fact that the contacts are still you - they just see the domain in their account and think they are done. I try to remember to encourage buyers to update the contact info when I provide the auth code, but sometimes I forget to. If I stumble on this scenario well after the transfer, then I'll usually just try and send them a quick email and explain it to them.
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