The domain name sell-through rate (STR) is the percentage of domain names that sell in one calendar year.
You can easily figure out the current apparent industry-wide sell-through rate by adding up the number of domain name sales in the past year and the number of domain names currently for sale on all of the major sales platforms.
The important figure, however, is not the industry-wide rate but your personal sell-through rate. This will depend on a number of factors, such as the quality of your domain names, how much you charge, and how you go about selling them.
For instance, a domain investor has 1,000 domain names. She will make $10,000 in sales annually if her sell-through rate is 1.0% and the average selling price is $1,000. The same investor makes $15,000 a year if her rate increases by just 1.5%.It makes a big difference to increase a statistic from 1.0% to 1.5%, which can seem like a small improvement.
Knowing the rate at which domain names sell is important because it helps you decide whether to raise or lower prices and can give you tips on how to market your domains well. To calculate your personal sell-through rate, divide the number of domain names sold over the past year by the total number of domain names you have for sale. This will give you an idea of how quickly your domains are selling and if you need to adjust your prices accordingly. By keeping track of your sell-through rates, you’ll be able to make informed decisions about your domain portfolio. For example, if you find that the majority of your domains aren’t selling at a high price point, then it might be wise to lower your asking price in order to attract more potential buyers. On the other hand, if many of your domains are being snapped up quickly at a higher price point, then you may want to consider increasing the asking price so that you can make a greater return on investment. Also, marketing strategies like offering discounts, using search engine optimization (SEO), using email lists, and interacting with influencers may help you reach a larger audience and make more sales.
You can also ask experienced domainers from namepros and Godaddy brokers for help if you’re not sure how to make your portfolio of domain names more likely to sell. They will be able to provide helpful insights and tips that may help you increase the rate at which your domains are selling. If you know how to price and negotiate domains, you’ll be able to make the most money possible and make sure your business does well.
Setting realistic pricing is key. You want to set prices high enough that you make a profit but low enough that potential buyers won’t shy away from making a purchase. Taking into account things like keyword trends and user demographics can also help you figure out how much demand there is for different kinds of domains, so you can set your prices accordingly.