Last week, we explored how adding a Buy It Now late in an auction can help lock-down a sale. This week, I sat down with Ali Zandi (who is KC Group on Flippa) to learn more about a seldom-used, but very effective tactic: adding inventory to a domain auction to “sweeten the pot.” In this instance, it made the Buy It Now price impossible to ignore.
How Did You Start Collecting / Acquiring App-related Domain Names?
I’m still fairly new to the domain industry, with only a few years under my belt. It’s really rare to get your hands on the domains that some of the original domainers were able to acquire. Like the rare LL.com or L.com or even single English dictionary words. So I think these days, domainers need to think outside of the box. What does the future hold? If this is my beginning like the 80’s and 90’s were the beginnings for the original domainers, what would I do? The App related domains I’ve acquired are true gems in my mind. Not because I own them, but because I believe in them. I am huge into development and the future. I hold patents for some gem ideas and they mostly involve apps or some software. So it is only natural for me to have a portfolio of app domains. Names like AppDesignSchool.com or GameDesignUniversity.com, I believe these app domains are the future. I’m a dreamer, and I know that selling these for such a low price will be something I look back on and regret a little bit, but hey, to see them flourish will prove that my future-based thinking isn’t that crazy after all!
What Influenced You to Sell the Domains in a Package, and Why Did You Choose Flippa?
I wanted to sell these domains in a package because that’s what I would want to buy. One domain here, one domain there makes less sense to me. I want to buy a portfolio at incredibly great prices and then turn around and sell them individually. So as a seller, I got into the head of my potential buyers and realized that hey, if I would want to buy bulk at bulk prices, why wouldn’t they? I chose Flippa because, frankly, it’s where a lot of the resellers go to buy their domains — and what better place to sell a wholesale lot of domains than where all the resellers are?
What Were Your Listing Tactics?
I always start my auctions at $1, sometimes with a reserve, sometimes without. I usually choose 30-day auctions and I always try to end my auctions on the same day of the week around the same time. I play with the Buy It Now during the auction, I offer insane 24-hour BIN deals a couple of times throughout the auction, and then I remove the BIN until the last few days.
Describe the Due-diligence Process You Provided for Your Buyers
I try my very hardest to provide the information buyers need to valuate my auction for themselves. I provide ideas for development, CPC, search results and more. Me personally, I almost never read the descriptions; I look at the domains, and if they don’t spark some deep interest, then I walk. That’s why I acquired all of these domains, because they all set off fireworks when I saw them.
Anything Else You’d like to Share about Your Selling Experience?
My selling experience started rocky, as do a lot of rookies’ first selling experiences go. I have learned SO much in these past years about the domain world, and Flippa has been a huge reason for it. Watching these auctions; noticing who is bidding on what and for how much; what domains are going for, what they should have gone for; and of course the “why on earth” prices that I have seen. The list goes on. I believe I am at a point where I am confident in the choices I make when acquiring domain names and I know that the only way into a profitable domain experience is either thinking outside the box (not too far though) or having the funds to acquire big names at big prices, and monetizing them.
Adding Domain Names to Your Portfolio Listing Really Turned the Bidding up a Notch Towards the Auction’s End. What Influenced You to Introduce This Tactic?
It’s a tactic I’ve considered before but the timing wasn’t right. With this auction, 60 guaranteed domains was great, but I wanted to increase the bidding volume on the last day. So I implemented a “Bidding Bonus” where at certain increments, new domains would be added. Near the end of the auction, I settled on a BIN price to include all 90 of the domains the portfolio ended up with. It averaged each domain out to about $83. Not only did this tactic influence the buyers to bid more, it increased the bid amounts allowing further exposure on the Most Active listings page. It’s all about exposure on an auction site — the [homepage] Spotlight feature being the best one, followed by Most Active listings, Featured domains, and so on. That being said, a good domain will be found regardless, but without the added exposure, the eventual buyer may not have seen my domain as he later told me, “I came across your auction purely by chance”. So if I had not pursued the tactics I pursued, I may not have ever reached this particular buyer. It takes money to make money, so I have no problem paying for the biggest upgrades, using the most attention-grabbing tactics, taking the time to write-up engaging descriptions and so on. It only makes sense to do so. It shows the buyer that you care about these names, this industry and that you took your time to aide them in their acquisition. The less digging around the buyer has to do, the more likely they will buy.
Were You Pleased with the Outcome? Did It Meet Your Expectations?
I was very pleased with the outcome. This is the biggest auction I’ve had to date and it sets a new standard for me professionally. While I would have liked to see more action on it, I went into it with no expectations KNOWING that I would turn a profit. I believed in these names that much. They are very valuable in the right hands. For me, this auction was about clearing my inventory out and making room for new domains and new ventures. I would have liked to see it break into five-figures but that just leaves me the opportunity to set a new standard for future auctions!
Anything Else You’d like to Share about Your Selling Experience?
It is always a pleasure selling on Flippa. I was a bit pesky and needy during the auction but the Flippa Customer Success Team was beyond helpful and attentive. I couldn’t have done it without them! Flippa is my favorite place to sell domains, by far! Keep your eyes peeled as I will be bringing a various amount of new domains to auction soon! Might even incorporate a new tactic…we’ll see:)
