I had a rare phone conversation with a friend about domain names yesterday. We chatted about the overall market, and I shared some of the recent pricing strategy I use when listing my domain names for sale on DAN.com and GoDaddy / Afternic. I thought I would share it here as well.
Somewhere around 60% of my domain names are listed via DAN, most with their buy it now landing pages. I have done fairly well selling domain names on DAN this year, and I have what amounts to a majority of my inventory-quality domain names listed there with BIN prices. I have nearly all of my inventory domain names listed for sale via Afternic / GoDaddy. I do not use GoDaddy landing pages, preferring to send the domain names not parked at DAN to my Embrace.com inquiry pages instead.
Generally speaking, I have been pricing my domain names a bit higher on Afternic than on DAN. For instance, a domain name I have listed on Afternic for $1,599 might be listed for $1,488 on DAN. Depending on the price and valuation, the difference may be a few percentage points to 20% give or take. There is no exact methodology to my pricing – it is typically based on how I am feeling than anything precise. As I update my prices, I tend to keep a price difference on domain names. I don’t have a consistent mark-up number to share, so I can’t really say for certain the price differential.
There are a few reasons for the price difference. I have found that many people trust the GoDaddy branding they see on Afternic-listed domain names. I have had buyers who have preferred to buy straight through GoDaddy rather than working with an another escrow service. That’s fine, but if they have a strong preference on trust or brand loyalty, it will come at a price.
When I do a deal through GoDaddy, I pay a higher commission and it takes longer for sales to process than via DAN. Not only do I have to pay more to close a deal on GoDaddy, but it also takes quite a bit longer to get paid. Here are two recent examples of sale and payment dates:
Domain name bought on September 22
Payment sent on September 23
Domain name bought on June 18
Payment sent on June 29
Both of these were sub $5,000 transactions. Mind you, the domain name sold at GoDaddy was already in my GoDaddy account, so there was not a long transfer process to delay the payout. On the other hand, the domain name sold at DAN was registered at Enom and the buyer transferred it to Key Systems. Despite that, I was still paid one day later.
I appreciate closing deals on both platforms. Put simply though, I pay a lower commission percentage and I am paid much more quickly on DAN. As a result, buyers will need to pay a small premium if they want to buy one of my domain names via Afternic / GoDaddy. Perhaps this is a reason for my cold spell at Afternic this Summer.