Approximately 80% of my domain name portfolio is now parked for sale via DAN.com landing pages. I’ve had success selling via DAN this year, and I have continued to move domain names to their landing pages throughout the year. I have played around with the sales options options, and I have settled on one – the older BIN price (with a 12 month payment plan option) + Make Offer option.
Many people are critical of a “Make Offer” field on domain name landing pages. If a domain name has a Make Offer field, people tend to utilize it rather than simply hitting the Buy Now button. I thought I would share my rationale for offering it on my domain names, despite the fact that it is likely leaving money on the table.
The vast majority of my business income is from the sale of domain names. Since domain names is how I make my living, I need to sell my domain names for income and to continue to grow my business. Allowing people to open a conversation by making an offer has been a good way for me to sell my domain names.
From my perspective, if I price a domain name too high for whatever reason, a prospective buyer who balks at the price may look for an alternative if there is no contact form or make offer field. The vast majority of my portfolio is replaceable, inventory-quality domain names I buy for less than $500 each day. Instead of my buying my “AwesomeDomainName.com” for $5,000, the prospect may choose to buy “FantasticDomainName.com” instead for $3,000 and I would never know. If I paid $250 for my name and I can easily replace it, I would rather take $2,500 or $3,000 and move the inventory than hold out for someone who may never come.
The majority of domain names I have sold via DAN have come after a negotiation when someone submitted an offer. I typically price my names on the higher side, knowing that an offer will likely be submitted for the domain name. I tend to make the minimum offer approximately half of the buy it now price, but I have been playing around with this. People seem to submit offers at the minimum or just above it, and it can be challenging to get people to improve their offer close to the buy it now price. I need to be willing to walk away from an offer that is not good enough, and buyers sometimes come back. That said, if I buy a name for $250, and it is priced at $3,999, selling it within a year for $2,500 is not such a bad thing for my business.
Of course, I can not say whether the buyer would or would not have simply used the Buy It Now option if the Make Offer option was not there. My portfolio is not large enough to test at scale to understand how much money I am leaving on the table with buyers who would use the BIN option if no other option was available. In addition, because I price my names higher than I expect to achieve to make up for the loss on Make Offer, that may cause people to look for an alternative domain name.
With all of that said, I am going to close out the year by removing the Make Offer option from my domain names at DAN. I am at the point where the year has been very strong and I don’t need to make any more deals. In addition, companies buying domain names may have more budget to spend than in the beginning of the year so they may be willing to spend more to buy a domain name. This change will allow me to see if buyers are willing to pay the full price, either up front or over 12 months, if the make offer field is not available. Depending on how things go (I am not hopeful), I will likely bring back the Make Offer option in January.
Beyond the financial aspect of closing deals, negotiating the sale of domain names is something I enjoy. It can be challenging and exciting, and the Make Offer option is nice from that perspective as well.