Francois wrote an interesting post back in July, he highlighted it again on Domaining.com and it’s an article I encourage you to read. Here it is. Since I started my 3% commission brokerage offer, I’ve mostly received submissions which fall into two categories:

1) Low quality domains that don’t have any value on the reseller market. Sure, such names could sell to an end user (all you have to do is take a look at the sales charts and you’ll see that the quality of domains that sell to end users is all over the place) but my 3% commission offer is only geared towards domain owners who want to sell at reseller prices. If you want to liquidate at reseller prices, I doubt anyone else is willing to help you do that at a lower commission than me but again, I specialize exclusively in domainer to domainer sales.

2) Great but overpriced domains. Ok, you own a great domain but it’s very hard to sell a domain at 10x – 20x the amount you paid for it to another domainer. The sky is the limit when it comes to end user sales but as far as domainer to domainer sales are concerned, being realistic is a must.

Alright, what I’m trying to explain is that if you want to sell your domains on the reseller market, you have to be realistic.

If you need liquidity:

1) … you will sometimes have to be willing to work on extremely low profit margins

2) … you will sometimes have to sell at a loss in order to generate the liquidity you need to fund purchases/projects which can help you generate exponentially more

Most people underestimate the importance of the reseller market but let’s face it: we wouldn’t have a *real* industry without one.

For the most part. end user sales are chugging along but the reseller market has seen better days. On the one hand, it’s understandable since domains are risk assets and in an economic climate such as this one, people tend to be more prudent but on the other hand, we do need to collectively or individually figure out ways to revive the reseller market.

Sorry if this initial rant doesn’t make too much sense, just putting a few thoughts on paper and I’ll try to present some ideas in a more coherent manner through the posts I’ll be publishing next week.