How to Boost Revenues by Closing Outlier Sales.| 216
Education
You can have a mix of excellent and average names in your domain portfolio right now. As Efty creator Doron Vermaat recently tweeted, clever domain investors top up their sales income with one or two outlier transactions per year from the top 5% of their domain names, even while the bottom 95% of the domains in their portfolio may be converted into a consistent revenue stream.
How can you ensure an outlier sale, or at the very least, give yourself the best chance to do so? How? Read on.
Choose your top domains.
The foundation for understanding which names have the greatest potential worth will come from identifying your finest domain names.
It makes sense to evaluate the likelihood of an end-user sale because the buyer of an outlier domain is likely to be one.
You may utilize resources like Crunchbase and LinkedIn to research how well-liked the keyword(s) in your domain are as company names.
Five firms are seen in the picture above that are using the exact-match term “Pareto” on Crunchbase, with many more using variations like “Pareto Holdings.”
By displaying how many extensions a domain’s keyword is used in, DotDB and/or ExpiredDomains.net can verify a domain’s popularity. Verify whether the major extensions (.com,.net,.co,.io,.xyz,.app, etc.) are created or, if they are, how much are they being offered for sale?
Price your finest names using data.
It’s time to assign a price to those names once you’ve determined your top 5%. The most rational and practical way to value a bunch of names is to use information that you have obtained during the initial identification step along with comparable sales from NameBio.
Look up comparable end-user sales data from the previous few years in NameBio’s database to serve as a useful benchmark for your domains.
For instance, similar sales for a short, well-known, single-word.io like Genie.io might be Mint.io for $230,000, Meta.io for $100,000, or Ruby.io for $88,000.
During negotiations, say “no.”
You need to develop the ability to decline an offer if it falls below the price you’ve established for your domain in order to make an outlier sale.
Although it might be risky and there is a chance the potential buyer would withdraw from the discussions, having faith in your appraisal can result in an exceptional transaction.
The selling of Voice.com by MicroStrategy is an excellent illustration of this. CEO Michael Saylor said that he turned down offers of $150,000 and even $10 million in order to sell his domain for the $30 million he believed it was worth.
Offer different payment options
Sometimes a buyer’s inability to finance the domain makes a sale of the name impossible. This does not always mean that the negotiation is over. Other options exist for pursuing an offer that stands out.
allowing the buyer to lease the name and pay for it in monthly instalments, or linking them with finance companies like DomainCapital
Alternative payment options include cryptocurrencies like Bitcoin and Ethereum, which some authorized escrow firms are allowed to accept as payment for domain names.
Marketplace BIN listings should be added
Adding a BIN (buy it now) listing to several marketplaces and maybe even your landing page will let potential buyers know what you expect in terms of pricing for the top 5% of your portfolio, helping to avoid low-ball bids.
Those expensive BIN listings might occasionally result in direct sales. Both the $300,000 sale of Eth.co by MagnumDomains and the €700,000 sale of Links.com in 2019 were made possible through BIN listings.