Is it easy to sell a high value premium domain? The simple answer is ‘yes.’
Is it easy to sell a high value premium domain for its maximum value? This question is much more complicated, and the majority of the time the answer is ‘no.’
When selling a high value premium domain, there are two distinct market segments, and the price discrepancy between the two can be significant. The first is the wholesale market, comprising members of the domain investor community. These buyers are only willing to pay a fraction of what an end user might be willing to pay, because their business model is to buy domains and resell them for profit. These buyers are always going to be available and there are plenty of them. In this scenario, yes, it is easy to sell a high value premium domain, but selling to this market segment will not maximize its value.
The second market segment is the retail, or end user market. This group is made up of businesses and individuals who purchase domains with the intent to develop and actively use them. In principle, an end user will pay more than an investor for an asset that will be actively used for the long term in order to generate return on investment (ROI). The supply of high value premium domains is very small and the demand in online marketplaces is growing every day. This dichotomy drives a higher price point for this market segment. The buyer pool is also much smaller than the domain investor community, which can make the process of identifying an end user with financial backing a difficult and lengthy process. Although this exercise can be time consuming, the relatively low renewal cost for high value domains means that it makes business sense to wait for the right” buyer. It’s not easy to sell a high value premium domain for the maximum value but since it is more profitable this market should be fully explored before considering any wholesale offers.
If you have questions regarding potential resale value of any domains in your portfolio or best practices for selling domains please contact MarkMonitor.
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