Domain Pricing Philosophies

Domain Pricing Philosophies Question

I received this question on domain pricing philosophies from my eBay store on 7/9/12 –

… I am totally new in the domain business and am seeking to find how anyone can justify asking $1000 +/-  USD for a domain name parked at Godaddy…In comparison to another trader (advertising the fact he/she has sold 35,000 domains to date on eBay) you seem to be (to me at least) “too cheap”. Is there a reason for this?

GDev’s Response

Greggle Development
Thanks for your message and congrats on your domain business! I personally started out with the same domain pricing philosophies, pricing my domains high & parking the name, but I quickly realized that people doing that are living in the past. As with any new technology, people that get in early make money much easier than those late to arrive. I still think it is relatively early in the game but domain pricing philosophies have evolved.  Since starting out, I have come to some personal realizations that dictate how I run my business. I will share them with you and would like to hear your thoughts on domain pricing philosophies.

  1. You can ask for any amount but true value is what somebody is willing to pay.
  2. People are less & less inclined to pay high prices, especially with the influx of new gTLD’s.
  3. All domains should be developed with a website to truly achieve maximum value
  4. High value domains developed properly can be sold for much more since their is no urgency to sell a profitable asset and low offers become easy to reject.
  5. A 300% + ($8  –> $25)  return over 2-6 months is better than holding a domain 3-5 years only to find out it is worthless or worth the same amount I sell most of mine for.
  6. CPC means nothing unless you take the time to develop the site and attract viewers
  7. Google will eventually blacklist 99.9% of cheaters so everything should be done honestly
  8. Domains will devalue as supply & demand continue to adjust the market valuations. Anyone telling you otherwise is a domainer that refuses to acknowledge the basic principles of economics.


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