Part of the task list of being a domain investor involves pricing your domain names for sale in the secondary market.
Domain names are "intangible assets" that can be exchanged for monetary funds. Unlike many tangible assets, such as real estate and vehicles, domain names don't have to have a ticket price while on the market.
It'd be strange to list a house with a "make an offer" note and cars come with an MSRP that is negotiable; still, that's an opening price.
When listing domain names for sale on the Uni Market, investors can decide whether to set a Buy It Now (BIN) price, an opening offer, along with setting a minimum price also known as "floor price."
You can also set a domain's listing to include both a BIN and a floor price, or simply invite potential buyers to make an offer with no restrictions.
While all these are options, the million dollar question is which one should you choose for each one of your domain names. Choosing the right pricing option can affect a domain's ability to sell, or complicate the process after its listing.
Many domain investors simply allow inquiries to come through, whether with an offer or not, in order to capture all leads. Negotiation begins as soon as an email arrives, although receiving a $10 offer on a five figure domain isn't exactly a great starting point.
That's the problem with not setting either a floor price, a floor price plus a BIN, or a BIN price. The other party doesn't want to spend money without knowing what you're asking for. It's a great idea, therefore, to set a price that'd indicate your desired range for that domain name.
When should you list domains for sale using the BIN option?
By placing a "Buy It Now" price onto a domain name, you're openly offering it for sale with a fixed price so that anyone, at any time, can meet and close a sale.
That price better be reflecting the domain's value, or you risk losing money. Consider using a BIN price option only when you're absolutely certain of the exact amount you're seeking in exchange. Double-check the price for mistakes; a missing trailing zero will cost you 90% of the domain's value!
A BIN setting is indicative of "aggressive" pricing by the seller, as perceived by the buyer. Negotiations are typically not permitted when a BIN price is present, although there *are* ways to bend the rules. Setting up a domain's listing to be sold with a "Buy It Now" option indicates that "it is what it is."
How can we add some flexibility to the BIN?
While the presence of a BIN price is great for those that act spontaneously with purchases, adding flexibility is achieved by the use of both a BIN and a minimum asking price.
The "floor price" acts as a threshold for negotiations: offers below that price cannot be accepted. The delta between the floor price and the BIN price should not be more than 10%, or it creates the impression of a discount that can be applied at any time. The presence of a floor price is there to weed out low offers by "dreamers"—buyers with an intention to buy a domain below its market value.
Using a floor price alongside the BIN is a good indication of a price range that defines the domain's worthiness and invites active negotiations. It's not rare for buyers to go with the BIN price even when a floor price is present; what a better example of human psychology for those who want instant gratification!
Removing the BIN—what's the alternative?
On the Uni Market, you can set a minimum asking price without a BIN. This creates a similar effect as the last option, but makes it impossible for the buyer to pull the trigger. When using this option, make sure that your floor price isn't too far from the price at which you're willing to sell.
In other words, treat the listing as if it had an invisible BIN price: the buyer cannot buy the domain instantly, but the asking price is not too far from the floor price. On the flip side, don't be surprised if you receive an offer matching the floor price and not a dollar more!
Lastly, you can remove both the BIN and the minimum asking price and let the offers flow in.
As long as you're willing to deal with offers that range from a few bucks to not much higher, there's always the potential that a buyer will eventually hit the magic number that matches your desired price. Use this option when the domain is very popular or trending, and collect enough offers in order to negotiate at a later stage.
Using the Uni Market brokers makes your life easier. They are experienced and possess a lot of information that will deliver great results on your behalf, even bridging any potential language barriers.