Categorized | Domaining Tips

Can You Make More by Selling for Less?

Posted on 30 November 2013 by Andrei

As strange as it may sound yes, you can.

Last year, I started offering brokerage services for short domains such as LLL dot coms in exchange for a 3% commission but I only accept domains which are priced for a quick sale.

That way, obtaining a sale is easier for me and in return, you can take advantage of a lower commission.

So how can you make more by selling for less?

Let me explain.

Let’s assume you sell a LLL dot com for $5,000 through my brokerage service. My commission is only 3%, so you’re left with $4,850.

Could you have obtained more by auctioning that domain?

Well yes, you could have but that doesn’t necessarily mean you would have ended up with more money after the sale.

Let’s assume you would have obtained $5,500 instead of $5,000 by auctioning it.

But since the commission would have been 15% instead of 3%, you would have been left with $4,675 instead of $4,850.

In other words:

1) By selling through my brokerage service for $5,000 at a 3% commission, you would have made $4,850

2) By selling through an auction for $5,500 at a 15% commission, you would have only made $4,675.

As you can see, you can make more by selling for less and this approach makes perfect sense for highly liquid domains such as LLL dot coms, for which determining the value is considerably easier than with other types of domains.

That’s why I focus on short domains, I do it because the sales are pretty straightforward and therefore, I can do it for 3% so that you ultimately end up making more money.

As a domainer, you have to understand that there’s no “one size fits all” solution, you have to figure out what the best approach is for your specific domain.

And especially when it comes to highly liquid domains such as LLL dot coms, the answer is that yes, you can indeed make more by selling for less.

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