by Lisa Allen, Account Manager – North America, Sedo.com
I get it. Pricing domains can sometimes be a challenge, especially when deciding to set fixed (buy now) prices. You might ask, “How could doing this benefit me?” or “How do I know if fixed prices are the right fit?” Rather than view fixed prices as a challenge, view them as the best opportunity to sell more of the domains you own.
Sedo’s quarterly Domain Market Studies show a steady growth in the percentage of sales completed as a result of fixed prices, and they indicate a continued upward trend. What does this mean for you? The demand for domains with easy “buy now” options is rising and will continue to do so as more sellers turn to fixed prices. Right now, sales from fixed prices account for more than 26% of all sales through Sedo!
Mickie Kennedy's Story
Like many sellers, you might be hesitant to set fixed prices for your domain names. Consider the success of Mickie Kennedy, a long time Sedo member. He has been listing domains for sale with Sedo since 2002 and now has over 5,700 domains available on the marketplace. At the urging of a close friend, Mickie made the switch to fixed prices in early 2010.
Since then, his sales volume has grown by nearly 10% over 2009, a number that is expected to increase even more in the coming year. “The number of sales was considerably fewer,” Mickie said when I asked him about his domains prior to the switch. “I was left with inventory of domains that needed to be sold. The number of sales has greatly improved since moving to fixed prices.”
Benefits of Fixed Prices
If his story doesn’t seal the deal, there are a full range of benefits from setting fixed prices:
Increase Sales Volume - Sedo’s research confirms that listing a domain portfolio with fixed prices can increase sales volume by up to 40%. In addition to this, we’ve seen domains priced $5,000 and under perform better with fixed prices. More end-users than ever are turning to the secondary market for domains. These buyers tend to prefer the buy now option over potentially timely negotiations, and you need to be ready.
Save Time - Avoid lengthy back and forth negotiations and have more “you” time. Buyers can purchase your domain(s) on the spot for the amount YOU choose. Just ask Mickie if this works: “I have been a [buyer]. When scouting for domain names for projects, having an upfront process avoided all the back and forth. I would actually avoid domains that were not clearly priced.”
Set the right price the first time – Cut out daily maintenance on pricing. The average sales price of a .com domain sold through Sedo’s marketplace is about $2,500. With resources like Sedo’s Price Suggestion tool or expertly completed appraisals, you can price your domains with confidence.
Turn expiring domains into sold domains – Instead of letting those soon to expire, unsold domains drop, set fixed prices. Make those investments pay off before you miss out.
Improve your distribution and promotion – Domains priced $2,000 or less get extra exposure through our Bargain Domains section. Setting fixed prices is also the only way to fully benefit from SedoMLS and Sedo’s distribution network of more than 50 global partners. You’ll be able to sit back and watch as your domains are sold and transferred automatically, so long as your registrar is part of SedoMLS. If your registrar is not currently part of SedoMLS, contact them today and tell them to join!
De-clutter your inbox – Sedo informs you of every offer or counter-offer you receive to ensure you never miss an opportunity. With a buy now option for buyers, you receive only one email letting you know your domain has sold!
Making the Switch
As a Sedo Account Manager, I have helped clients price their portfolios and take advantage of fixed prices. Whether your domain portfolio is large or small, the benefits above are clear. Sedo also offers tools and resources (including A+ customer support) to guide you through this process.
Making the switch is easy:
1. List all your domains for sale.
2. Use the Price Suggestion tool in Domain Management, or order appraisals from the industry’s best brokerage team.
3. Apply fixed prices through Domain Management.
Depending on the size of your portfolio, setting fixed prices may require a small dose of dedication. “It did take a time commitment to price 7,000+ domains, but it has been worth it,” Mickie says. “Most of my domains are safe two- and three-word generic .coms. They aren't worth thousands of dollars, so I did the work to price my domains and now have a system for pricing future additions. I like to set the bulk of these safe domains at $499. It's a price where most customers don't have to get approval from the boss or spouse. Plus, it's easy to absorb that price. With an acquisition cost under $20 each for most of my domains, it also represents quite a bit of profit.”
If you have an account manager, talk to him or her today about how to make your domains more buyer-friendly, increase sales, and take advantage of the world’s largest marketplace and distribution network. Also, Sedo’s online Customer Support Center contains hundreds of “How-To”s and solutions to help you do more with Sedo.
Mickie’s final words of advice for the seller making the switch? “Don't overprice your domain names. In most cases, you paid little for them. Be fair, pick decent domains, and you can create real profit through them.”
What are you waiting for? Get started with fixed prices to clean up your portfolio for the New Year and new opportunities in 2011.
Check out Mickie Kennedy’s portfolio of domains to see how fixed prices work for him.
Have a success story to share? Email keith[dot]white[at]sedo[dot]com.