At various times throughout the year, GoDaddy team members host webinars/chats to discuss buying and selling domain names. During the NamesCon conference, GoDaddy VP Paul Nicks and other members of his team also offer advice about domain name sales, specifically related to GoDaddy’s platforms and network. At some point in the near future, I would like GoDaddy to have an in-depth discussion about domain name pricing and price strategy.
When it comes to listing my domain names for sale on Afternic and elsewhere, I use a combination of three factors:
- Gut feel based on domain name market and topical knowledge
- Price I paid to acquire the domain name
- GoDaddy appraisal
The first two factors are the most critical to me, but the third factor is important when listing on Afternic / GoDaddy because of the prominent role the appraisal plays in the purchase process.
While I tend to have a good idea of where I am going to price a domain name as soon as I buy it, I sometimes struggle a bit with setting an exact BIN and offer price on inventory I want to sell as quickly as possible. I will give you a real life example to show the issue I have, and I think that will help illustrate why I think a GoDaddy hosted discussion about pricing strategy can help me and others.
I bought HDVenture.com at GoDaddy Auctions for about $20 last week. The name was provisioned to my account last night, and I set up a landing page and pricing this morning. This is a name I would be happy to sell quickly for $1,500. If I received an offer for $950 today, I would probably move it because it’s the type of domain name that is relatively easy to replace. GoDaddy’s appraisal is $1,759.
It would be helpful to know at what price this domain name is most likely to move quickly. Would GoDaddy recommend listing it for $1,499 or an even $1,500? Should I list it for $1,497 like some of the discount stores to give the impression that it is a reduced price? Am I leaving money on the table by not listing it closer to the appraised value? It would be helpful to know if there is a certain percentage discount from the appraised value that moves customers to buy a domain name right away. Maybe the appraised value does not factor in to a decision? Maybe the price being below a certain price point, say $1,200, is what is important when it comes to lower value domain names? Maybe pricing above $1,000 is elastic, so if I am going to list it above $1,000, I might as well maximize the return and list it for $2,500. I do not have the data to guide me, but GoDaddy does.
In addition to setting a good BIN price, I would like to know where I should set my minimum offer. On a name like this, I don’t want to have a long negotiation for a few extra dollars. I also don’t want to set the price too low that someone opts to make an offer rather than simply buy the domain name. On the other hand, if someone came in at $800 this afternoon, I might take a quick deal on a name I bought for $20.
Ultimately, much of the analysis I’ve done here is done in 5 seconds in my head before listing domain names. This might be detrimental to me because the prices I set may be based on how I feel at the moment. If there was more information available about price setting on inventory, I think it would be helpful to me and to others. I am sure I could ask GoDaddy to share some intel privately, but I think asking publicly could benefit a wider audience if the company is willing to share insight based on the data they have.