A lot of newcomers to the domain industry believe that it’s a “free for all” playground, a promised land, if you may, with quick returns and very little risk.
This dangerous approach could not be further from the truth.
Every single sale requires careful planning and a well-defined strategy in order to maximize its potential return on investment.
The process begins by acquiring quality domain names that can generate passive income, have development potential and a long term commitment. Flipping is the ultimate money-risker, and while it’s tempting to make a few bucks, one will most certainly miss the big bucks if they’re far too eager to sell their domain assets quickly.
Pricing a domain for the end user buyer requires knowledge of the particular market; research can begin with simple Google searches, or with the assistance of specialized tools, such as ZFBot and DomainTools.
Similar domains that are listed with a publicly available price, can become reference points when a seller is questioned about their asking price.
Past domain sales aren’t always indicative of current market prices, however, they offer substantial information on trends and sales potential. One can use NameBio for that purpose, or the weekly reports from DNJournal. Mike Berkens seems to post everything related to Afternic, Sedo and Godaddy, so his blog at TheDomains can be searched as well.
Your asking price for a particular domain can be adjusted according to the financial footprint of the buyer. If you research your buyer sufficiently, you’ll be able to deduce how far their budget could stretch; however, wealth isn’t always a promise of securing a bigger deal.
Thus, every domain inquiry requires the psychological profile of the buyer. With practice – and time – you will be able to negotiate smarter, resulting in bigger sales.
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