price upon request benefits

Domain Sales Strategy: Price Upon Request

Price Upon Request was a recent feature added by Efty, this in addition to the options to Make An Offer and Buy It Now.  In this article I compare the buy-it-now-method versus the price-upon-request-method, listing the price upon request benefits.  When the feature was released, several Domain Investors were excited by the possibilities of this new way of doing business.  The driving force behind this new feature was the Domain King, Rick Schwartz.  The King tweeted this in response to the feature release:

In my recent interview with domain investor Rick Schwartz, I learned at least one thing about him: with more than two decades of experience in the domaining industry, when he speaks, you should listen.  This article is me listening, and examining exactly what are the price upon request benefits.

BUy it now versus Price Upon request

price upon request benefits

Below I examine 7 scenarios that pit buy-it-now versus price-upon-request.  Five of them benefited the seller, which is indicative that price upon request is the wave of the future.

Scenariobuy-it-nowprice-upon-requestRelated Notesprice-upon-request change favors the. . .
more likely to allow for impulse purchasesyesnoImpulse purchases can result in buyers remorsebuyer
allows the end user to know if the domain name they desire is in their budget immediately.yesnoby not placing a price on the name, this may result in more inquiries. This could give domain investors a better understanding of the demand of the name, and thus the value.seller
allows the end user to negotiate a pricenoyesPrice upon request gives the buyer some flexibility to negotiate the buying price.buyer
most likely allows the domain investor to extract the maximum value from the domain name.noyesdomain investors list buy-it-now domains at a price they're willing to accept. This mentality could prevent them from maximizing value.seller
in the event the domain name becomes a hot commodity, it prevents the domain investor from selling the domain at a lower-than-market-value price.noyesoccassionally, names will become hot due to some viral content, which is most-often unforseen.seller
can be viewed by end users as a distress saleyesnosome users may view buy-it-now domain names as names that are willing to be moved quickly. Listing a domain name as price upon request gives a domain name a feeling of a limited resourced (which it really is), which may impress upon buyers a sense of urgency.seller
gives the domain investor information on interested leadsnoyeswhen an offer is received, this will, at a minimum, give the domain investor the contact information of a lead. Even if a deal isn't initially reached, then this could open the door to negotiate a future deal with any number of leads.seller

The biggest benefit to the domain investor is that price upon request gives the domain investor a clear indicator, via price inquries, of the level of interest in his or her domain.  Most of all, it gives the domain seller a list of potential buyers, even if there’s not an agreed upon price initially.  After examining the positives of price upon request, I updated my entire portfolio from buy it now to price upon request.  What are your thoughts on price upon request?

 

 

 

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