Increase your domain name value
Each investor wants to get the top dollar for their Domain Name, but sometimes we only see a bunch of low ball offers, nothing significant. We’re looking at domain selling pages and see names close to ours going for a lot more than the deals we’re getting for our domain name. We’re asking ourselves, why? How do other people get higher amounts for the same form of a name? Well, I’m going to tell you why and give you some tips on how to optimise value for your asset.
We all know that scarcity is driving the domain name value. How many papers have you read about “There are just 676 2 letter.com domain names, and there are 17,576 3 letter.com domain names, and so on …” It is common knowledge that scarcity generates value, but how can you personally take advantage of scarcity
Privacy Protection can be obtained from the domain name registrar. The expense is typically about $3 a year. Most experienced domain investors already know this, but if you put privacy protection on your domain name, it will actually increase the value anywhere from 10 to 30%.
Why are you doing this? Scarcity, man! Domain investors also fish for cheap domain names by sending emails to domain owners who do not have privacy protection on their domain properties, since their contact information is public knowledge.
These domain names are mostly regarded by investors as names that can be used fairly conveniently and at any time. When you delete your contact details from the public domain, no one can approach you to ask about the name, making it more scarce immediately. You ask, “Yeah, well, how am I going to sell my name if no one can contact me about buying it?” This brings us to the next point.
Visibility Buyers need to see if the domain name is eligible for purchase in order to make an offer. The more investors you want to own your name, the higher the value of your asset. If your name isn’t clear, then you’ll know it’s available. So, “How do I keep my domain name scarce but at the same time increase the value of my asset in the domain investor market?”
Enlist qualified support
Aftermarket websites and/or business experts on average request higher rates for domain names. Why are you asking for this? Since they have access to large networks of customers and a lot of user traffic on their websites. They understand the market thoroughly, recognising that investors pay prices in every domain group.
Professionals will lead you across the investor market and provide inside information about industry dynamics and top bids. “Yeah, well, there are lots of brokerage and aftermarket auction sites. How do I select the right one for me?” consider your Investor Audience.
It’s important to know what types of investors are buying domain names in the same category as your domain name. If you own a short numeric domain name, you know that the buyer you’re looking for is probably Chinese. But if you own a single word English domain name, your best bet is to find a buyer in an English speaking country.
Some names almost entirely derive their value from investment potential, while others have more value for end-users. Many domain names have crossovers in Western and Eastern Domain Markets and Investor / End Consumer Markets, so it is important to understand where your particular domain name suits.
So you’ve agreed to recruit professional support, and you’ve got an idea of the section where your domain can command the highest value, now what?
Find the right partner
You want to find a company that specialises in giving exposure to the right types of investors for your unique domain name. Every type of service has its pros and cons.
Second, we’re going to explore aftermarket pages. Most out-of-market services are small and often tend to have the largest audience. Places such as Namejet, 4.cn, Sedo, Afternic, Flippa, etc. have a huge amount of traffic so that you can take advantage of massive quantities of customers flooding into the platform.
Most of them have the option of auctioning your domain name, which puts investors in a position to bid to win the right to purchase your asset. The challenge of using these services is that they have so many domain names for sale that your name might get lost in the network.
They don’t give you a personal touch to help guide you in selling your brand. They’re also passive resources because no one’s reaching out to individual customers who may be interested in your name, the user will just have to come across your name to see it.
These programmes tend to be more costly (usually about 15%) than other alternatives. Finally, if your name does not sell, the public will see the highest bid on your domain name, and that price will be set in buyers’ minds when you seek to sell your domain name at a later date.
The second choice is to hire a broker. Broker constantly reach out to the buyers they know personally who are interested in your unique type of domain name. They can have a personal touch, such as an evaluation of your name, and help decide which investment sector should be targeted to bring the most value to you.
Unlike in the auction, if your name does not sell, the highest bid is not revealed so that the value of your name does not become set in the eyes of the investor. Broker prefers to work with a smaller portfolio, so the name is more popular.
They tend to be less expensive than out-of-market platforms (usually about 10% but most brokers are willing to negotiate rates depending on the name and relationship).
The problem of working with brokers is that their network of customers and the traffic on their websites appears to be much lower than that of aftermarket providers.
And there you have it, if you want to optimise the value of your domain name, then you want to find the right balance to generate liquidity, increase exposure, and understand your investor audience.
With these fast and easy tips, you can expect to see a major improvement in the quality of your domain name offerings and squeeze the coldest hard cash out of your asset. Have a great day and the best of luck!