Pricing your domain names. It’s a topic that can stir up debate, confusion, even fear. Yes fear, the fear of missing out (FOMO) on the big sale.
Domain investors tend to take a look around at what others are doing. It makes sense to get a broad sense of what your peers are doing. But make sure they are your peers.
A big bankroll domain investor is not a peer of someone in the business for a year or two with nothing more than a few hundred dollars as a safety net.
How some price their domain names also tend to aggravate others. In a thread about pricing domain names, some expressed frustration with companies like Huge Domains and Sav.com.
Years ago Michael Berkens told me he thought BuyDomains priced too cheaply.
The business models at a Huge Domains or BuyDomains is going to be very different for a single domain name investor.
Some like to take a contrarian approach, they purposely sell lower to try to bring overall pricing down. There have been a few who have sold brandables for $199 to $299 in hopes of hurting BrandBucket and sellers there.
I have known domainers who have marketed to companies, “I am the good guy, I know the domain business most are price gougers come buy from me you will never pay more than X”.
Look we never see anyone’s books who knows what’s working for some?
Brad Mugford weighed in:
I have done A-B testing in the past multiple times, and lower pricing has never resulted in more total sales revenue.
If you take a domain priced at $2,500 and price it at $500 it is not 5x more likely to sell from my experience.
As long as your domains are priced in a normal end user range, say under $5K I really don’t think the STR is going to be that much different when it comes to end users. At least, not enough of a difference that you would need in sales volume to make up the gap.
You often just end up selling the best domains for lower prices, where you would have been better off leaving them all at normal end user pricing.