How do I price a super premium domain for sale?

[richrf]

Hi everyone,

I am new to the forum and have found lots of great information.

I am in the process of selling Links.com right now and am preparing to approach end-users utilizing the information that I have found on this forum. One of the major questions I have to answer right now is what to use as an asking price.

I have reviewed the listings on other sites (e.g. Sedo), and it seems that most of the super premium domains are listed as "Make an Offer", which is where I am at right now. However, if I approach an end-user, I have to be prepared with an Asking Price. How do I go about developing an Asking Price?

There are a few public comps (I am not sure I can even trust these numbers), but I am guessing most of the major sales are completed without public disclosure. I don't want to be extreme on either end. I just want a good price to begin negotiations.

Thanks for any help.

Rich

 

[diablo]

One option worth considering is to sell it at auction.

I would contact the likes of RickLatona.com and other brokers (see dnjournal.com for lists of big selling dotcoms with brokers' names) to get a feel for what they think it would fetch at auction and what leg work they would put in to promote it to potential buyers.

Once an auction date is set, you too can contact potential end users stating that it is for sale by auction and inviting them to bid. You can take this opportunity to explain why it would be valuable to them. The more potential bidders, the better chance of realising a top price.

You can always put a reserve on the domain name so that it doesn't go for less than you would reasonably accept.

 

[Edwin]

Good advice. The two big US tradeshows are DomainFest http://www.domainfest.com/ and TRAFFIC http://www.targetedtraffic.com/

Both shows have auctions, and while you've probably missed the deadline for submission to this year's DomainFest show (which will take place from 1-3 Feb 2011) it may be worth contacting the organisers via their website to see if you can still slip the domain in.

Failing that, the next big US show is I think not until TRAFFIC which is from October 16-19.

Between those 2 mega-shows there may be more local/regional shows in Europe or elsewhere, but so far I don't have much info on these.

Hope this helps!

 

[Sussexite]

You could see if Ron Jackson of DN Journal or another well know US domain news website owner (too numerous to mention) is interested in writing a bit about you and your plans for the domain.

You could say that you're looking for a strategic partner but would be open to the right sort of offer and this might bring a serious buyer out of the woodwork.

Wouldn't take too long to do and wouldn't commit you to anything.

 

[richrf]

One option worth considering is to sell it at auction.

I would contact the likes of RickLatona.com and other brokers (see dnjournal.com for lists of big selling dotcoms with brokers' names) to get a feel for what they think it would fetch at auction and what leg work they would put in to promote it to potential buyers.

Thanks for your suggestions. I did visit Rick Latona's site but it seems to be dormant and there is some discussion in other forums that he might not be that active any more in domain auctions. Oversees concerns me because of the passed history of shill bidding. They have lost lots of credibility. Do you have any particular auctions in mind that I should look at?

Once an auction date is set, you too can contact potential end users stating that it is for sale by auction and inviting them to bid. You can take this opportunity to explain why it would be valuable to them. The more potential bidders, the better chance of realising a top price.

This is an excellent idea and I will remember to do this if and when I move to auction.

You can always put a reserve on the domain name so that it doesn't go for less than you would reasonably accept.

Yes, this is something I should do. However, I know that at least in one case a well known brokerage house (not Rick Latona or Oversees) wanted to bring Links.com to auction with just 3 days notice and with a very low reserve. It really made me wonder about their motives for suggesting such a poor approach.

Good advice. The two big US tradeshows are DomainFest http://www.domainfest.com/ and TRAFFIC http://www.targetedtraffic.com/

I'll definitely look at Traffic. But I do have to be comfortable with the auction house.

Both shows have auctions, and while you've probably missed the deadline for submission to this year's DomainFest show (which will take place from 1-3 Feb 2011) it may be worth contacting the organisers via their website to see if you can still slip the domain in.

Yes, the attorney that I will be using for the transaction also thought DomainFest was a good place to go but remarked the deadline had passed. Do you know if DomainFest is attended by end-users?

Failing that, the next big US show is I think not until TRAFFIC which is from October 16-19.

Between those 2 mega-shows there may be more local/regional shows in Europe or elsewhere, but so far I don't have much info on these.

Hope this helps!

Helps a lot. Very much appreciate your taking the time to respond.

You could see if Ron Jackson of DN Journal or another well know US domain news website owner (too numerous to mention) is interested in writing a bit about you and your plans for the domain.

I had a couple of write-ups after my press release. I think that many journals feel that the the actual sale is a newsworthy item as opposed to the listing.

You could say that you're looking for a strategic partner but would be open to the right sort of offer and this might bring a serious buyer out of the woodwork.

I agree. Once I have a full plan in place, I might approach a journalist to see if they want to do a story. One of the issues is that the domain journals are read by domainers. One of my challenges is to reach end-users. I believe this group would include decision makers in the marketing departments but I do not know what they read. Techcrunch? I'm not sure.

Wouldn't take too long to do and wouldn't commit you to anything.

I'll definitely work out a plan to include your ideas. Thanks all!

Rich

 

[diablo]

One of my challenges is to reach end-users.

Domainers are often end-users too so don't think of them as mutually exclusive markets.

There is a general belief that you only get the best price selling to an "end-user". That won't always be the case. In fact, with so many businesses still not seeing the value of generic domain names, it could be that the best price you can realise today is from within the domaining community.

As for Rick Latona, he is behind the TRAFFIC auction in October that Edwin mentioned. Forget what you have read on forums and ask him directly if he can help you market your domain name.

 

[accelerator]

I have reviewed the listings on other sites (e.g. Sedo), and it seems that most of the super premium domains are listed as "Make an Offer", which is where I am at right now. However, if I approach an end-user, I have to be prepared with an Asking Price. How do I go about developing an Asking Price?

IMO the price you need to have in your head is what price you would actually be prepared to let the domain go at. When approaching users, I would not give an Asking Price, just say that you are inviting offers. Another technique might be to contact users saying you are going to be putting the domain into auction, and ask them if they would like to be contacted when you have an auction date. That way, you will know how many people have seen your message and have an interest.

I think it's essential to give the news of the sale enough time to get around. Whilst I'm no expert in high-end sales, I would say at least a few months would be a good idea. To suggest selling the domain within three days just seems ridiculous.

Rgds

 

[richrf]

Domainers are often end-users too so don't think of them as mutually exclusive markets.

There is a general belief that you only get the best price selling to an "end-user". That won't always be the case. In fact, with so many businesses still not seeing the value of generic domain names, it could be that the best price you can realise today is from within the domaining community.

As for Rick Latona, he is behind the TRAFFIC auction in October that Edwin mentioned. Forget what you have read on forums and ask him directly if he can help you market your domain name.

This a good point. Some domainers may find value in the domain name beyond just speculative purposes. I'll put contacting Rick Latona on my to do list. Thanks for the help.

IMO the price you need to have in your head is what price you would actually be prepared to let the domain go at. When approaching users, I would not give an Asking Price, just say that you are inviting offers. Another technique might be to contact users saying you are going to be putting the domain into auction, and ask them if they would like to be contacted when you have an auction date. That way, you will know how many people have seen your message and have an interest.

I think it's essential to give the news of the sale enough time to get around. Whilst I'm no expert in high-end sales, I would say at least a few months would be a good idea. To suggest selling the domain within three days just seems ridiculous.

Rgds

Thanks for the suggestions. While continuing my due diligence, I am slowly developing a price that I think would be a good selling price. And, yes, I'll be sure to send out announcements to all interested parties, once I have made any auction sale commitments. Thanks again for all of your help.

Rich

 

[peter_w]

I'm very curious what this one goes for. I think it's got such a wide end-user base (seo, dating, networking to name just a few), and is also attractive to the big-domainers.

I've got a price in my mind that I'm expecting it to sell for, so will be interesting to watch.

 

[richrf]

I'm very curious what this one goes for. I think it's got such a wide end-user base (seo, dating, networking to name just a few), and is also attractive to the big-domainers.

I've got a price in my mind that I'm expecting it to sell for, so will be interesting to watch.

Hi Peter,

Thanks for the note. I'm also very curious what Links.com will go for. At this time I have absolutely no idea and no one in the industry that I've talked to has any idea. There just hasn't been enough history on domain names such as this one and like anything that is very rare, it is a matter of how much a buyer wants it and how much they are willing to pay to have it. We'll see.

Rich

 

[Blossom]

I have nothing useful to add but I'm interested in the back story. Have you been sitting on it since time began? Did an elderly relative leave it as his inheritance? Did you snatch it up by chance?

 

[richrf]

I have nothing useful to add but I'm interested in the back story. Have you been sitting on it since time began? Did an elderly relative leave it as his inheritance? Did you snatch it up by chance?

Hi,

The story, unfortunately, is a bit boring. I formed a company back in 1993, and we registered the name back then. This is the sad part. We closed down the company in 1996, and I retained the company name (now being used by another technology company) and the domain name. Now the happy part. I just kept the domain name all these years as I pursued my own career.

I began trying to develop the name several years ago. Lots of false starts. The most unhappy one was when I tried to develop a concept (spent a bit of money) and was then referred to a site called Diigo.com which had already implemented my concept in a way that I could never challenge.

So, I've been using the domain to try out different ideas but none gained any traction so I decided to put it up for sale and simultaneously continue to look for ideas that I might develop on it.

And then I lived happily ever after.

Rich

 

[Ashton]

Shame, would have been a perfect domain for a digg style service but diigo is a good idea.

Just please make sure you contact http://www.linksoflondon.com/ when it is for sale They are ideal.

 

[richrf]

Shame, would have been a perfect domain for a digg style service but diigo is a good idea.

Yes, I thought it was a great idea. A way for people to network and share their links. I had private networks, public networks, everything. It was beautiful. And lots of security. Only thing was .... I was late. Plus, Diigo had a team of engineers and financial backing that I couldn't compete with. C'est la vie.

Rich

 

[markb]

You may be better keeping hold of the domain to get the most for it. That way when someone contacts you about it, you know they really want the domain so would be prepared to pay more for it.

Its a difficult domain to value because it could have different meanings. Maybe it would be good for someone to develop a business networking site or maybe an seo company selling website links. Its not a domain name that could be easily monetised either.

I think you may struggle to get a really high price or find the right end user, but I wish you all the luck. It is a good name so you should get quite alot for it.

 

[richrf]

You may be better keeping hold of the domain to get the most for it. That way when someone contacts you about it, you know they really want the domain so would be prepared to pay more for it.

Its a difficult domain to value because it could have different meanings. Maybe it would be good for someone to develop a business networking site or maybe an seo company selling website links. Its not a domain name that could be easily monetised either.

I think you may struggle to get a really high price or find the right end user, but I wish you all the luck. It is a good name so you should get quite alot for it.

Hi Markb,

Thanks for the suggestions and well wishes. At this point, I am working on publicizing the sale and making contacts. As you suggested, the name can be used to brand an organization or service in almost any marketplace, though I am targeting technology. If a good business opportunity comes along, I will certainly develop the domain. If an good offer comes along, I will sell the domain. Either alternative may unfold. When it comes to rare commodities, one never knows.

Thanks much for your response. It is very much appreciated.

Rich

 

[markb]

Hi

Have you decided what price or price range you are looking to sell your domain name for? or what minimum price you would accept for it?

 

[richrf]

Hi

Have you decided what price or price range you are looking to sell your domain name for? or what minimum price you would accept for it?

Hi,

We have not been able to settle on a price. I have discussed pricing and valuation with many brokers and they are unable to assist me. I have also discussed this matter with other owners of super premium domains and they are having the same difficulty. I continue to research this issue. Thank you for your interest.

Rich

 

[markb]

Have you had a look at the site below which lists the domain sales each month and what they went far. If you look at the bottom of the page, they have an archive so you can go through and get a good idea of what other similar domains have sold for in the past.

http://www.dnjournal.com/domainsales.htm

 

[richrf]

Have you had a look at the site below which lists the domain sales each month and what they went far. If you look at the bottom of the page, they have an archive so you can go through and get a good idea of what other similar domains have sold for in the past.

http://www.dnjournal.com/domainsales.htm

Yes, and I have discussed these comps extensively with many parties that are very experienced in selling super premium domain names. No one has been able to give me any assistance in determining a price. I am not sure why since all of the people I have talked with have had quite a bit of experience in the field.