Categorized | Domaining Tips

Reseller Pricing vs. End User Pricing

Posted on 28 August 2012 by Andrei

Last week, I offered to broker domains at a 3% commission but explained that the domain(s) should have a reseller market value of at least 25k. Unfortunately, it seems most domainers don’t understand the difference between reseller pricing and end user pricing.

It’s not complicated at all: I specialize in selling domains to other domainers so if you want to turn some of your best domains into cash by liquidating on the reseller market, I’m pretty sure I’m the most affordable option out there at a commission of only 3%.


… and here’s where most people didn’t understand my request.

The domain(s) (either one domain or a small portfolio) should have a reseller market value of at least 25k.

What this means is that you as the seller should know how much your domain is worth on the domainer to domainer market.

When selling to another domainer, always understand that you’re selling to someone who is buying the domain from you with the intention of selling to someone else at a profit later on.

Everyone would obviously love to always sell to end users but as we all know, end user sales are not as common as we’d like them to be. Even, with their trained sales staff and excellent domain sales approach, has a turnover of only 1% or so, just something to keep in mind.

If you need cash asap, liquidating on a reseller market can be your best option but if you think you can sell domains to other domainers at end user prices, you’re unfortunately in for an unpleasant surprise.

You have to ask yourself:

1) Were there recent sales of similar domains on reseller venues (again, reseller venues only, end user sales don’t count)?

2) Are your domains liquid? In other words is there a market for them, is there demand from other domainers? LLL dot coms are liquid domains, for example, whereas domains in exotic extensions are often pretty close to being illiquid.

These two questions should help you determine how much your domains are worth on the reseller market.

If there isn’t a lot of liquidity for domains similar to the one(s) you want me to sell, then trying to liquidate on the reseller market would not be a good option.

If all recent sales seem to indicate that the domain is worth 3 figs at best, it doesn’t qualify because for the arrangement to be worth it on my end, the sales price of the domain or small portfolio should at the very least exceed $25,000.

Let’s face it: if I help you sell a $1k domain, the $30 commission I’d earn would not exactly be worth it.

That’s it, just thought I’d write this post since a lot of people don’t know the difference between reseller pricing and end user pricing. I received emails from sellers even before launching the 3% brokerage offer last week (most domain bloggers receive emails from sellers on a regular basis), so from now on I’ll simply link to this post whenever it’s clear that the person who contacted me needs to understand the difference between reseller pricing and end user pricing 🙂

If you want me to broker your domain(s), feel free to send an email at but if your prices are not realistic, I probably won’t reply.

Read my initial post, then read this post again and you’ll understand what I’m looking for. 3% is a very low commission and for it to be worth it on my end, you as the seller should have realistic price expectations.

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