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Over the past few years, we have done quite a bit of testing and experimentation.
Here are 15 Domain Investing tips that we have seen work well. While some learnings are specific to our platform, many have broad implications.
A thread 🧵👇
Here are 15 Domain Investing tips that we have seen work well. While some learnings are specific to our platform, many have broad implications.
A thread 🧵👇
Add a BIN price
Domains with BIN price consistently deliver better sell-through rates than Make Offer
Adding a Make Offer can introduce friction and limit the visibility of domains, especially when buyers search for specific price filters. Most buyers prefer transparent pricing
Domains with BIN price consistently deliver better sell-through rates than Make Offer
Adding a Make Offer can introduce friction and limit the visibility of domains, especially when buyers search for specific price filters. Most buyers prefer transparent pricing
Offer Payment Plans
In today's economy, where startups are prioritizing cash flow, having the option to pay monthly is extremely desirable.
Most platforms offer the ability to setup payment plans, and if you do not offer them for your domains, you are likely losing sales.
In today's economy, where startups are prioritizing cash flow, having the option to pay monthly is extremely desirable.
Most platforms offer the ability to setup payment plans, and if you do not offer them for your domains, you are likely losing sales.
Stay below the hurdle levels
If your domains are priced too close to hurdle levels (e.g. $5K, $10K), price them slightly below those levels
Many buyers have CC limits, budget targets. Domains priced above those levels will lose exposure especially if buyers use price filters.
If your domains are priced too close to hurdle levels (e.g. $5K, $10K), price them slightly below those levels
Many buyers have CC limits, budget targets. Domains priced above those levels will lose exposure especially if buyers use price filters.
If you have set a BIN price, do not add a Make Offer option next to it.
If buyers see a Make Offer option next to BIN price, it raises doubts about price credibility and signals to them that the BIN price is just a placeholder
If buyers see a Make Offer option next to BIN price, it raises doubts about price credibility and signals to them that the BIN price is just a placeholder
Speaking of Make Offer, never accept the first offer.
Accepting the opening offer signals to the buyer that they offered too much. It may seem counter intuitive but you are more likely to close the sale by countering with a higher price than by accepting the first offer
Accepting the opening offer signals to the buyer that they offered too much. It may seem counter intuitive but you are more likely to close the sale by countering with a higher price than by accepting the first offer
Use combination metrics like STR * ASP for monitoring portfolio performance.
For example if you have a 2% STR with $2000 ASP, you can see that each domain on an average produces $40 in annual revenue. This can help better project your portfolio returns against acquisition costs
For example if you have a 2% STR with $2000 ASP, you can see that each domain on an average produces $40 in annual revenue. This can help better project your portfolio returns against acquisition costs
Google Alerts & SEO
If your domain is already developed in other TLDs, it helps to ensure the landers are SEO optimized
Most companies setup Google Alerts to keep tabs on their brands. When your lander is indexed, buyers using alternate TLDs will likely receive Google Alerts
If your domain is already developed in other TLDs, it helps to ensure the landers are SEO optimized
Most companies setup Google Alerts to keep tabs on their brands. When your lander is indexed, buyers using alternate TLDs will likely receive Google Alerts
Speaking of SEO, getting your .com landers to rank on the first page of Google can be a compelling motivation for companies to consider upgrading to the .com domain, especially if they are using sub-par extensions.
Remember, never target any specific company directly
Remember, never target any specific company directly
When investing in domains, prioritize industries with higher chances of receiving VC funding.
For example, Domains for Fintech or SaaS businesses will likely see a wider buyer pool and higher selling prices compared to domains related to Beauty Salons or Pet Stores
For example, Domains for Fintech or SaaS businesses will likely see a wider buyer pool and higher selling prices compared to domains related to Beauty Salons or Pet Stores
For Brandable domains, it's better to focus on words or concepts related to the industry rather than exact industry words
Example: For a Dating App, domains with words like Spark, Love, Match are more likely to resonate with buyers compared to exact word "Dating" in the domain
Example: For a Dating App, domains with words like Spark, Love, Match are more likely to resonate with buyers compared to exact word "Dating" in the domain
When investing in domains, make sure to step into the buyer's mindset
Identify potential industries for the domain and ask yourself, as the CEO of that company, if you would choose that name for your own startup
This helps weed out names that may not be viable for most startups
Identify potential industries for the domain and ask yourself, as the CEO of that company, if you would choose that name for your own startup
This helps weed out names that may not be viable for most startups
Be careful about Trend Investing
Trends usually have some short term opportunities, but they always come with high risk.
While some domains containing keywords like Meta, GPT, NFT may achieve few outlier sales, those are usually exceptions and the majority will never sell
Trends usually have some short term opportunities, but they always come with high risk.
While some domains containing keywords like Meta, GPT, NFT may achieve few outlier sales, those are usually exceptions and the majority will never sell
For Brandable domains, recognize the power of Merchandising.
Buyers usually start their search with big ideas or generic keywords even though they actually want unique brands. Having the domains tagged with the right root words and industries can help maximize the exposure
Buyers usually start their search with big ideas or generic keywords even though they actually want unique brands. Having the domains tagged with the right root words and industries can help maximize the exposure
It's dangerous to base investment decisions solely on individual sales reports.
Remember, a sample size of one is an anecdote, not an insight.
Instead, focus on aggregated insights, your own intuition and fundamental branding principles that make a great domain name
Remember, a sample size of one is an anecdote, not an insight.
Instead, focus on aggregated insights, your own intuition and fundamental branding principles that make a great domain name
Keep Testing
No Marketplace is perfect. No one-size-fits-all domain strategy exists. Ultimately, it boils down to determining what works best for your unique portfolio through testing.
So keep testing, and remember to never risk more than what you can afford to lose.
No Marketplace is perfect. No one-size-fits-all domain strategy exists. Ultimately, it boils down to determining what works best for your unique portfolio through testing.
So keep testing, and remember to never risk more than what you can afford to lose.
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