Is it Worth it To Sell Domains at Reseller Prices? Look at the Math


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I have always been a fan of holding onto your good domains and doing something with them be it full scale development or just a minisite. Both ways greatly increase the value of the domain if it is sold later on. In my personal opinion their is not point in trying to sell a good domain at reseller prices. Notice I stress the word good.Lets take a look at some math.

Lets say you have 10 "Solid" domains and you choose to sell them on a forum at reseller prices. If you get $100 for each name that is $1000 dollars quickly. This requires you selling all of the names which is not very likely. Many might be happy with that flip depending on how much you acquired the names for. But many people are missing the boat.

Lets take those same 10 "Solid" Domains and with a little time and good sales pitches to endusers lets say that you sell only 5 of the names.

Enduser sales can be anywhere from 50% to way over 500% or reseller prices.

Lets go with only100% increase (I think it quite low) so you sell the 5 names for a total of $1000 and you still have those 5 names left.You have the same profit for selling only half of the names.

Now I think a markup of 300% is reasonable for a true end user sale and still a little low and if you sell those 5 names again you have now made 50% more only selling half the names.

Lets say you focus on 2 of the 10 domains and you sell both of them for $1000, your profit is 100% more than when you sold the 10 domains and you still have the 8 solid domains left.

My point of this post is not to say never sell on the forums again but before you do try and sell to an enduser all it takes is one call or an email and the math speaks for itself.

Related posts:

  1. Product Domains Continue to Sell Strong
  2. Sell a Name Easy When Others Own the Lesser Extensions + A Mistake I Made
  3. A Few of My Recent Domain Purchases with Prices

Comments

4 Responses to “Is it Worth it To Sell Domains at Reseller Prices? Look at the Math”

  1. Mojito
    October 13th, 2009 @ 12:41 pm

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    I would definitely take one big sale over a many small sales.

  2. DNLingo
    October 13th, 2009 @ 11:20 pm

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    It all seems logical. I of course would prefer end-user sales but I have never sought it out. Can it really be as simple as a phone call or an email to a prospective buyer? Have you ever made any end-user sales?

  3. Bruce Tedeschi
    October 14th, 2009 @ 6:14 pm

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    Most domainers are unaware of how to sell to end-users. You have to be organized and have a clear case why your name will save dollars in marketing and build brand value. email me at domains@dnaffiliates.com if you want more info on how2

  4. Stop Selling Domains to Domainers Look for Endusers! : Teen Domainer
    December 7th, 2009 @ 2:50 pm

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    [...] domains to domainers is futile it is not worth it to sell domains at reseller prices when there are endusers out there. You may turn a reg fee domain into a quick $50 and if that is [...]

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