You really need to get on the fixed price domain bandwagon
Thursday, May 3rd, 2012
SedoMLS and AfternicDLS are changing the game.
Sedo released its first quarter domain name market study today (pdf). For the first time ever, fixed price “buy now” listings were the company’s most common type of sale. 39% of sales were buy now purchases and 34% were offer-counter offer purchases.
There’s a simple reason for this: end user buyers don’t want to negotiate. And they want their domain now.
I suspect a lot of these sales occurred through SedoMLS. I also bet Afternic’s “buy now” results are 90% or more.
You should take note.
I often hear people griping about all of these $2,000 end user sales. People say “If the person hadn’t put a fixed price, they would have negotiated more money.”
Hogwash. If they hadn’t put a fixed price with instant transfer, the buyer would have probably negotiated a lower price than the fixed price. Or they would have walked away. And it would have taken a heck of a lot more of your time to do the transaction.
Put yourself in the mind of the typical end user buyer. They want to buy a secondary market domain just like a hand registration.
Some people are worried about losing out on a lottery ticket. They’re afraid one of their domains will suddenly become worth more because a major company launches a new brand. The domain will be sold for less money than they could have gotten.
It’s possible, but don’t count on that ever happening.
It’s worth noting that, although fixed price sales accounted for 39% of Sedo’s sales in the first quarter, they accounted for only 16% of the sales value. This shows that the big ticket sales still involve negotiation.
That’s how I recommend looking at your portfolio. Price out the domains that small business end users will buy. Set the others as “make offer”.