January 12th, 2010 
admin 
It's no Jedi Mind Trick -- but there are ways to not show your hand.
In considering listing a domain for sale, publicly, a big dilemma is whether to list an asking price, or not.
Here is my stance:
1. Listing an asking price is just like making the first offer — which I never like to do. If we list an asking price of $100,000, then every negotiation that we encounter will be below this figure.
Think for a second, whether you are buying or selling — it’s best to NOT make the first offer.
If you do, then every negotiation from that point on will go in the favor of the other party.
If the other party makes the first offer (in buying or selling) you have the upper hand… you control what happens next and where the price negotiations go from there.
2. Listing an asking price eliminates the possibility of a large, unexpected sale. If you list a domain for $50,000 — a buyer won’t make a $100,000 offer. It depends on your circumstances… but you’ll likely never sell a domain for more than your publicly listed asking price.
3. Listing an asking price might scare away people looking to pay less, and discourage them from bidding.
However, one could argue that these people aren’t serious buyers anyway… but some sellers are known to negotiate to 50% of the asking price — and buyers might not know there is this much “wiggle room”.
I’d like to encourage buyers to make offers — but there’s a fine line between encouraging bids and encouraging low-ball offers.
4. Listing an asking price DOES reveal your expectations, and it does save time by discouraging low-ball offers.
I know this is a short post, but I’d like to hear your thoughts on the psychology that goes into a domain sale.
Should you list an asking price or not?
Are there things a seller can do to encourage more bids?
Is it best to list NO asking price?
Is it best to list your absolute bottom dollar… so buyers know a deal can be had?
Is it best to price yours on the low end of the comparables to encourage buyers?
Is it best to list your name on the high end, to try to land that big buyer?
What strategy encourages more bidders — more serious bidders?
Is it your opinion that listing your name in the first place hurts your bargaining position?
For me, when I have interest in a name, and I see that a broker has it, or it’s listed on Sedo, Afternic etc. that excites me (as a buyer).
It leads me to believe the seller is motivated, and is ready to deal.
Does listing your top domain with a broker hurt your bargaining position from the get-go?
or
Is giving yourself every avenue for a sale just standard procedure?
We are going to list a decent sized name for sale and we are eager to see the interest generated from having no price listed.
Which strategies lead to more offers?
- Moving Forward ….
Aron
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For those with ultrapremium domains listing a “fair” price could limit the sales price received. However, for those with five years or less in the industry I believe listing a fair price is prudent. Buyers have many options and not listing a price means they have to ask. There is a fear that merely asking will inflate expectations as many domainers often set unrealistic sales prices. When we go shopping for anything at a mall or online, price is normally a factor in the buying decision and not having a clear price is annoying. Not setting a price likely results in lost opportunities. I believe SEDO and Afternic have some stats that domains with prices under ____ sell at a higher velocity than those without a set price.
So many things become a factor when listing a domain for sale. Just by listing it, I think shows the seller is motivated to sell.
Location of listing I think makes a difference. If you list the domain with Latona’s it’s not uncommon to see $xxx,xxx domains for sale.
As a buyer, I hate seeing “Accepting Offers” and most of the time will lead into me not even placing an offer. I would rather be in the ball park then send off a low ball.
In some way, I like a “Bid Range”. Higher priced domains can leave a pretty big gap. $500K-$1M and not look that odd. If you would be happy with $600K, you still have a shot at getting that $1M offer.
I think most “out of the ball park offers” come on domains that are not listed for sale in anyway.
Good thoughts guys.
I think we’re going to list a price, after thinking it over.
Our list price is what we expect to receive… no
games here — not listing it for 3X what we want.
We’re going to list it at our price to buy it.
Thanks again for the thoughts.
- Aron