Dealing with a Small Pricing Error

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I bought a domain name on NameJet in June of last year for less than $100. I priced it at $4,999 on DAN.com, and that is where the domain name resolves. Typically, I price my names a bit higher on Afternic than on DAN because of the higher commission rate and longer payment period, which I discussed at length last September.

Recently, a broker from GoDaddy emailed me because a prospective buyer made a $2,000 offer on this domain name. This would net me $1,600 after the commission, which is a nice ROI but I think it undervalued the domain name. I did a bit of searching, and I noticed that I had underpriced the domain name at GoDaddy / Afternic. This was either accidental or I raised my price at DAN and did not raise it correspondingly at Afternic. Whatever the case, I believe the domain name is more like a $5k domain name than a $3k domain name.

What I did was tell the GoDaddy broker that I would be willing to honor the $2,999 price if the buyer agrees to the deal that day. Otherwise, the price would be raised at Afternic to put it on par with the correct price at DAN. I don’t think it would have been nice to tell the buyer too bad he didn’t agree to the price because it is now higher. My business needs inventory sales to continue to grow, and this is the type of domain name I can replace.

In the end, the buyer did not agree to the deal, and I still own the domain name.

When you own a portfolio of domain names and list them on multiple platforms, price discrepancies can be a regular occurrence. There are many times when I log in to Afternic or DAN and realize a domain name looks underpriced or overpriced. I end up making price changes on one platform but don’t change it on others. When this happens and a buyer is interested, I give them a short opportunity to buy it at the lower price and then raise the price afterwards if they don’t buy it.

I might have lost the deal at Afternic, but I still have a nice domain name in my portfolio.

7 COMMENTS

  1. So if they came through Godaddy buyer service, they should be able to meet up easily since they pay over $100 + for their service plus another 20% if they can get the deal done .
    So now Godaddy pockets the $100+ and can’t close the deal. That was a bargain they missed out on,if you agreed to sell for just an extra $999.

    I won’t be surprised if they don’t have other suggested names similar to yours suggested for $12 when they type in your name in their search bar. If a buyer goes through godaddy broker I never lower my asking price but make them work for it .

  2. I’m building Domain.io to help solve this problem. Domain investors can monitor their portfolio(s) across multiple marketplaces and ensure consistent pricing while taking into account varying platform commissions.

  3. You can solve this problem by pricing BINs only at Dan. Use only 25% of BIN minimum offers at Afternic and Sedo to screen out tire kickers and low ballers. Quote inquiries at Afternic and Sedo when they come in, having passed your minimum offer screen. That way, when you change your mind about a price, you only need change it in one channel, Dan, and you continue to quote prices as they come in from Afternic and Sedo, with quoted prices higher than BIN due to higher commissions in those more expensive channels.

    • Apologies, I misspoke.

      Use 25% of BIN for make offers at Dan, which you can easily change when you change a BIN at Dan.

      At Afternic and Sedo, use a fixed minimum offer across all domains – I use $1,500 – to screen out tire kickers, low ballers, and other time wasters who are likely not corporate or well-moneyed startup end users anyway. When a minimum offer comes in, you’re likely dealing with a qualified buyer who is ready to enter into serious negotiations to acquire your domain name.

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