‘I Expect the Price Will Increase Very Soon’

One of the neat sales tactics offered by Squadhelp is the price increase notification sellers can add to their landing page. Sellers who utilize this tool will show a message on their landing page that informs visitors the price will be increasing. This is a smart tactic from this innovative domain sales platform.

While I have not used Squadhelp, I agree that this can be a smart tactic. In fact, I manually use a similar tactic in my negotiations with prospective buyers. When discussing the price of a domain name, I will say something like this:

Make Offer Leads to “Dilution of Domain Value”

For many of my domain names listed for sale, I have a “Make Offer” option next to the buy it now price. Domain name pricing isn’t science for me, and if I miss the mark by a considerable amount, a prospective buyer may simply choose an alternative domain name. I rely on domain name sales to fund the majority of my business, so I would prefer to give someone the option to make an offer rather than pass over an overpriced domain name.

Darpan Munjal, Founder of Squadhelp (a branding agency with a focus on domain names), shared an observation that domain investors may wish to consider when listing their domain names for sale:

Celebrate Your Wins

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Making money is the most important driver in a domain investment business. It is, after all, a business for most people. When I accomplish something special – like closing a big deal – I like to celebrate it. Making money is the goal, but doing something small to reward myself for an achievement is important.

No matter how great the achievement, I usually do something relatively small as a way of celebrating. I might open a nice bottle of wine with my wife or go out to a special dinner. When I achieve a more notable accomplishment, I might buy something to mark the occasion. I am not really a flashy person, so it might be a purchase I’ve put off for a while.

Price for .com Rising Again in September

In February of this year, Verisign announced that the wholesale price for .com domain names will be rising by 7% on September 1, 2022. The wholesale cost, which is paid by domain registrars like Namecheap and GoDaddy, will be raised from $8.39 to $8.97. Domain registrars add their own margin to that amount, and the total is what domain registrants pay to register, renew, and transfer .com domain names.

For domain investors, this additional 7% fee can be impactful depending on the size of a domain portfolio. Andrew Rosener tweeted a good reminder for investors who may have forgotten about the looming price increase:

Don’t Put Too Much Stock in One Sale

I had a nice five figure sale to close out last month. It was the kind of name I can easily replace, and in fact, I have been working on that. I have been buying similar types of names inexpensively, figuring if one startup paid five figures, others would probably do so, too.

Although it didn’t cost me much money, this wasn’t the best move.

After I sold the domain name, the nameservers changed to GoDaddy default servers from my Dan.com servers. The Whois record was private, like all new GoDaddy transfers. I had no idea who bought the domain name or how it would be used. This afternoon, I checked on the domain name to see if the buyer is using it yet.

Domain Investing is Capital Intensive

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Domain investing is a capital intensive business. No matter how much money you have or have access to, you can spend it all acquiring your portfolio of domain names. This fact can make it challenging to grow your personal wealth while building your domain name portfolio.

In a traditional salaried or commission-based job, a person pockets their salary minus their taxes. There may be some business costs not covered by the salary, but a person takes home nearly everything they earn in salary.