All investors want to get the best price for their domain name, but often we just see a bunch of low offers, nothing substantial. We look at domain sales sites and see that names similar to ours are worth much more than the offers we are seeing for our domain name. We ask ourselves, why? Why do other people get higher amounts for the same type of name? Well, I’ll tell you why and give you some tips on how to maximize the value of your asset.

Shortage

We all know that scarcity drives domain name value. How many articles have you read talking about “There are only 676 2 letter.com domain names, and there are 17,576 3 letter.com domain names, and so on…” It is well known that scarcity creates value, so, How to personally take advantage of the scarcity?

Tip #1: Privacy Protection

Privacy protection can be purchased from your registrar for your domain name. The cost is typically around $3 per year. Most seasoned domain investors already know this, but if you put privacy protection on your domain name, you’ll actually increase the value by 10-30%. How is this you ask? Shortage! Domain investors often search for cheap domain names by emailing domain owners who have no privacy protection on their domain assets, because their contact information is public knowledge. These domain names are often seen by investors as names that can be obtained relatively easily and at any time. When you remove your contact information from the public sphere, no one can reach you to ask about the name, making you instantly scarcer. You ask “OK, well, how do I sell my name if no one can contact me to buy it?” This brings us to the next point.

visibility

Investors must see that your domain name is available for purchase in order for a sale to occur. The more investors want to own your name, the more the value of your asset will increase. If your name is not visible, one will know that you are available. So, “how do I make my domain name scarce but at the same time maximize the visibility of my asset in the domain investor marketplace?”

Tip #2: Get professional help

Aftermarket websites and/or industry professionals on average charge higher prices for domain names. Why is this what you ask? Because they have access to large buyer networks and have a lot of investor traffic on their websites. They understand the market intimately, they know the prices investors pay in each domain category. Professionals can guide you through the investor market and provide you with insider information on market trends and the best deals. “Okay, well, there are tons of brokerage and aftermarket auction sites. How do I choose the right one for me?”
Understand your investment audience

It is 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, then you know that the buyer you are looking for is likely to be Chinese. However, if you own a single-word English domain name, the best thing to do is find a buyer in an English-speaking country. Some names derive their value almost exclusively from investment potential, while others have more value to end users. Many domain names cross over into the Western and Eastern domain markets and investor/end-user markets, but it’s essential to understand where your specific domain name fits. So you’ve decided to seek professional help and you have an idea of ​​the segment that your domain will have the highest value in, now what?

Tip #3: Find the right partner

Find a broker or after-sales service that meets your needs. You want to find a service that specializes in giving visibility to the right types of investors for your specific domain name. Each type of service has its advantages and disadvantages.

First, we will discuss aftermarket sites. Most aftermarket services are broad and also tend to have the largest audiences. Places like Namejet, 4.cn, Sedo, Afternic, Flippa, etc. They have a high amount of traffic, so you can take advantage of the large number of investors coming to the site. Most of them have options to auction off your domain name, which puts investors in a position where they have to bid for the right to purchase your asset. The challenge with using these services is that they have so many domain names for sale that your name can get lost in the system. They don’t provide a personal touch to help guide you in selling your name. They are also passive services, so no one is reaching out to specific buyers who might be interested on your behalf, the investor would just have to stumble across your name to see it. These services tend to be more expensive (usually around 15% of the fee) than other options. Lastly, if your name doesn’t sell, the public can see the highest bid for your domain name and that price will be locked in the minds of investors when you try to sell your domain name at a later date.

The second option is to hire a broker. Brokers actively approach buyers they know personally who are interested in their specific type of domain name. They can provide a personal touch, such as evaluating your name, and help determine which investment market to target to attract the most interest. Unlike auctions, if your name doesn’t sell, they don’t reveal the highest bid so the value of your name isn’t fixed in the eyes of the market. Brokers tend to deal with a smaller portfolio, so your name stands out more prominently. They tend to be less expensive than aftermarket sites (they usually charge around 10%, but most brokers are willing to negotiate rates based on name and relationship). The challenges when dealing with a broker is that their network of buyers and the traffic to their websites tends to be much less than after sales services.

So there you have it, if you want to maximize the value of your domain name then you want to find the right mix of creating scarcity, increasing visibility and understanding your investing audience. With these quick and easy tips, you can expect to see a significant increase in quality bids for your domain name and get the most out of your asset. Have a great day and best of luck!