To maximize your domaining profits, it’s critical to sell at the right time and for the right price. A clear selling strategy will help you make good decisions, so you don’t turn off legitimate buyers or sell your domains for too little.
In Domaining 101, the domain trading and monetization experts at Protrada offer several tips for getting top dollar for your domain.
- Price it right. As a general rule, you should set your price at 5-10 times what you have paid for the domain or 4-7 times the current monthly revenue. In other words, the routine buy/sell strategy is to buy domains at 10% of what your selling price is. Amazing, huh?!
Be sure that your asking price will make up for all expenses you’ll incur with the sale, including renewal or Paypal fees, as well as taxes. If your site is producing income, also make sure that the sale price is high enough to compensate you for the loss of income.
Ideally, your domain sale will produce some profit for you and some to reinvest into your business so you can buy even more domains.
- Be clear about why you’re selling. Perhaps you’re selling because a buyer made you an offer you can’t refuse. Or perhaps you need cash quickly. Or perhaps you’ve invested all the time you can afford into the site, and you’re ready to let it go.
The reason you’re selling will impact whether or not a deal with worthwhile to you, as well as influence your negotiation strategy. If you’re in a cash crunch, you’ll want to sell quickly and may be willing to accept a lower price. But if a domain is simply no longer a good fit for your portfolio, you would be willing to hold out for the right price, even if it takes a while to sell.
- Develop a relationship with buyers. Domaining is just like any other industry in that it’s easier and more cost-effective to generate recurring business than it is to find new customers.
End-users will usually be done after one sale, but investors will keep buying. Pay attention to what your investor buyers are interested in, so you can snap up domains that they like and approach them with a deal.
- Prepare to persuade. If you want potential buyers to meet your asking price, you need to ensure that they understand the value of your domain and the return on investment their purchase will bring. If you did the right research when you bought the domain name, you’ll have a good idea of what similar domains sold for – information you can use to justify your price.
The goal with domaining is to make money – and that means you have to sell. Don’t set your prices so high or play so hard to get that you scare away potential buyers. But at the same time, don’t feel so desperate to sell that you’ll chase after stubborn buyers who are unwilling to pay a fair price. If you have a valuable domain, you won’t lose by holding onto it longer.
What other tips have you found useful when selling domains? Share your thoughts below! ~ Alex
Source: Domaining 101, a free e-book from Protrada. Download your copy here.