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We Are All Selling Something - Hopefully!

Tuesday, April 26, 2011
By admin

 

We are all selling something, and if we’re not we’re in trouble! If you’re a Car mechanic you’re selling your car repair skills. If a Teacher you’re selling your knowledge and if you’re a Domainer you are selling your domain names (hopefully)

Ever since Mankind started to evolve from the primordial ooze we have traded. Neighbouring tribes would have traded excess meat, animal skins, salt etc etc. When the Iron age finally arrived trading significantly increased. Suddenly the human animal could hunt and defend itself much more effectively. Suddenly the market for hunting weapons made a quantum leap. Pretty much the same occured with domain names. Generally speaking there is still great demand for certain names but in my opinion the price points for most sellers have to be revised significantly and downwards in the main. If you can brave the storm and hold out for the inevitable upturn go for it! I wish you luck.

As a broker I get bombarded with emails every day from owners of domains who are seeking buyers. I try to reply to every email even the ones asking me to sell NoOneWillEverBuyThis.tel for $50 k. Thankfully sellers of great names also contact me too or otherwise I would be totally wasting my time, and I hate wasting my time. Of all the names presented to me I only take on circa 5% and of that 5% I can realistically expect to successfully broker around 2%-5% of them - in this market!

Unless you hadn’t noticed it’s a "buyers market" out there. Of course there are exceptions, of course there are buyers who will pay what they want to pay and not what they consider to be the current market value, but these kind of buyers are very very rare. As James Stafford (the owner of Namecake) mentioned to me a couple of years back - as the initial recession hit home. "Most domainers still want top dollar for their domains without realising that the game has changed"

You know, he was right then and he is right now. The World economy is far from recovered. There are serious issues ahead, we’re far from being through the worst of it. Sure the current "correction process" will find an equilibrium, it always does. But if you ask me there are some serious bumps to come. The downturn is far from over.

If you do want crazy money for your domain property good luck to you. It’s your call, they’re your domains. All I can say is I hope you can afford the luxury of not selling. If you can afford not to sell then why sell short? If you can’t afford not to sell then try seriously revising your MO.

Afterall are we Domain Collectors or Domain traders? Not much point having unsold (though excellent) names in your inventory if you can’t afford to pay your bills. As much as I love domains I am a pragmatist. I figured out a long time ago that my real aim with domain names is to make money. For me the money is much more important than having the domain.

Hardball sellers will argue that if you never hold out for big money you will never get big money. I hear them, but my counter argument is are we talking big money or crazy money? Big money is relative but crazy money is almost totally unobtainable.

$5000 for a name is a small fortune to one domainer but chump change to another. If you need sales my advice is to figure out what a "good price" for your domain is rather than a "crazy price" As a sale will be much more attainable.

 

 

thanks for reading,

Andy Kelly

C.O.O Namecake

C.E.O UpMarketURLs

 



2 Comments »

  1. by bruce clerk |  April 26, 2011, 12:31 pm  

    Bang on the money, this biz is full of dreamers. Many of these crazy bin guys need to get real and soon

  2. by bruce clerk |  April 26, 2011, 12:33 pm  

    I work on a 15 to 20 % margin, and I do pretty well. Thats my model.

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