We want you to be successful with this newsletter so we’ve compiled some pointers here to help you make the most of your experience with the newsletter. Please take a few moments of your time to review these pointers and hopefully increase your sales!
This newsletter is intended as a tool to help domain investors change positions on stale inventory, freeing up resources so that they can in turn take a position on new inventory to improve chances of a retail sales event. Or in simpler terms, the newsletter is here to help you sell off domains which you have had for a while and have been unsuccessful in selling to an end user / retail buyer so that another investor may purchase those domains at a reasonable wholesale price that which they can AFFORD to take over your position on the domain and the role of trying to find an end user / retail buyer to buy the domains. And likewise the newsletter provides you that same opportunity to buy from other investors’ domain names which they have been unsuccessful in retail sales but perhaps you might be more successful than them at selling them forward to an end user / retail buyer.
That said the most important thing to keep in mind when pricing your domains for potential inclusion in the newsletter is to price them such that another investor can AFFORD to INVEST in them.
What the newsletter IS NOT is a retail sales outlet. Although some end user buyer may have secretly subscribed and has come here to scoop up great domain names at wholesale prices the reality is these are not our subscribers. By and large, our subscribers are other investors such as yourself.
Generally speaking (save for rare exceptions) the spread between wholesale and retail pricing in domain names is quite distant. Although it varies upon the investor and their skill in picking the right domains and their sales technique, generally speaking it has been found that an annual sales turnover on a domain portfolio tends to average around 2% per year. This means that if you have a portfolio of 500 domain names you might average selling about 10 of them per year. Some years you may sell 15, and some years you may sell 5. Given this low expected sell through rate a few assumptions need to be made; you are going to need a lot of domains if you want to see a meaningful number of sales each year (or even 1 sale per month), nobody’s resources are unlimited so you are going to have to keep your acquisition costs as low as possible, and your successes need to be a lot bigger than your cost per domain. Both yourself and our other subscribers face this same scenario.
So when you are pricing your domain at $5k (for example) think to yourself, could you afford to invest $5k in this domain? What if you had invested $5k in all the domains you have in your portfolio of this same caliber, how much would you have spent on your domains to date and does that make any sense? For example, if you have 500 similar quality domains in your portfolio and spent $5k on each of them that means you have spent $2.5M on your domains (not to mention your annual renewal cost which is probably at least $5k per year); which if you have, I hope you have made well over $2.5M in sales since then or at least will do so within your working life, otherwise your business isn’t going so well.
When pricing your domains specifically for sale in the newsletter, you should really be pricing them at about what you spent on them, assuming you spent an amount which left you room for a decent margin on a possible retail sale. If you paid a too much for the domain when you bought it then you probably will have to sell it for less if you want it to sell here. If you got a really good deal on the domain when you bought it then if you are lucky you will be successful at making a small margin selling it wholesale in the newsletter (but nothing like a retail margin which tends to be much bigger).
The best place to find profits in the newsletter is not in selling your inventory but in finding new inventory which you can sell for a healthy margin. Since nobody has unlimited resources eventually you may have to sell some of your domains (even at a loss) in order to get some new ones which you may have a better chance at selling for a profit. This may make more sense then repeatedly re-trying to sell the exact same domains you have been trying to sell for quite some time unsuccessfully. Just because you or someone else has been unsuccessful in selling a domain does not mean that you or someone else will have the same experience selling that domain, since you are a different person, with different resources, different contacts, different advantages, and different sales techniques.
We have found over and over again that pricing is the number one factor in achieving sales in this newsletter. If you price your domain so that it is invest-able for someone else then it may sell.