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"Buy It Now" listings are best?

Discussion in 'Domain News' started by soj, May 4, 2012.

  1. soj

    soj Founder

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    Andrew Allemann has posted a story on Domain Name Wire about the most successful methods of selling domains in the aftermarket (stats by SEDO) i.e. fixed price, buy it now listings.

    "You really need to get on the fixed price domain bandwagon"

    Well worth a read imho.

    What do you think in relation to Aussie market?
    .
     
  2. Drop.com.au

    Drop.com.au Membership: VIP

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    We’ve been beating this particular drum for years :)

    From our experience selling thousands of domains in the domain active and protopixel portfolios, fixed price listings far outsell "make offer" domains.

    95%+ of our com/net/org portfolio is priced, using our in house pricing algo based on search count, bid price, similar sales, rate of sale and other data.

    Because our domains are priced we get wider distribution through Registrars increasing sales – these outlets are not interest in facilitating negotiations, they just want to shift product.

    Pricing domain gives convenience and certainty for the buyer - no negotiation, guaranteed outcome, and the "instant transfer" sales process.

    As far as the Australian Market goes, the majority of our com.au portfolio is priced – although there's less incentive as we have no increase distribution through DDN style instant transfer tech or partners (the eligibility criteria and COR process is a big barrier).

    I must admit I manually priced the au domains 4 years ago and now find myself selling domains that I would now ask more for. It’s also more difficult to price AU domains “en masse” as we don’t have the kind of data we have for com/net/org – and a nightmare to reprice.

    So fixed prices...

    Pro's - increases number and rate of sale. Increase distribution in com/net/org, though no opportunities (yet) for better distribution in Australia.

    Con's - Pricing the inventory in the first place. Inventory need to be repriced. Occasional sale at too low a price.

    A couple of other points…

    We sell more domains through our "domain for sale banners" than through any of our distribution partners. Do not undervalue the power of your own traffic in selling your domains.

    In your pricing, factor in third party commission, this also gives you some wiggle room in directly negotiated sales. And people will still want to negotiate, even though you have a fixed price – it’s human nature.
     
  3. snoopy

    snoopy Membership: VIP

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    Definitely the best way to sell. Makes it very easy for the buyer, the price is right in front of them, they get to see it straight away (ie before they can make up their own opinion on value) and there is no scope for negotiation, which a lot of people don't like and probably doesn't work well for corporates.
     
  4. soj

    soj Founder

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    Great post Andrew. Many thanks. :)
    .
     
  5. Joel

    Joel Membership: Community

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    I can't stand 'Make An Offer' domain auctions. I have never bid on one listing - I've only ever purchased domains with a listed price or a buy it now option.