๐ท๏ธ Reselling vs Wholesaling Domains: Two Prices, Two Businesses
Retail sells to the business that wants the name; wholesale sells to the investor who will wait for that business. Different prices, different speeds, different math โ and most portfolios need both.
Two prices for the same name
Every domain has a retail price โ what the end user who needs exactly this name will pay โ and a wholesale (reseller) price โ what another investor pays today, in cash, to hold it until that end user shows up. Wholesale runs roughly 10โ50% of retail. The gap is not a discount; it is payment for time and risk. The reseller is buying the years of renewals and the 1โ3% annual chance of a sale (the numbers).
DomainDumpsterDive's valuation shows both so you can choose per name rather than pretending every name is a retail name.
When to sell retail
- The name is category-defining (a real word or phrase a business would search for) and a .com.
- You can carry the renewal for years without minding.
- You have it listed everywhere a buyer would look, priced at or a little below the comparable sales.
When to sell wholesale
- You need the cash, or the renewal bill is due and you would not re-buy the name today.
- The name is good but not category-defining โ a brandable that needs the right buyer to walk past.
- You own too many names to market each one; selling the tail wholesale funds the marketing of the head.
The trap is the middle: pricing wholesale names at retail and waiting. That is how a portfolio grows to 500 names and a $7,000 renewal bill with two sales a year.
Being the wholesaler
The other side of this trade is a business too: buying at wholesale from investors who need liquidity and holding for retail. It needs three things โ a valuation you trust more than the seller's story, patience measured in years, and cheap holding costs. The $1 .com Playbook is about the third one.
Questions
What is the wholesale price of a domain?
What another domain investor will pay for it today in cash โ typically 10โ50% of the retail price an end user would pay. DomainDumpsterDive shows it as the reseller price on every valuation.
Why is the reseller price so much lower than retail?
The reseller is buying the wait: years of renewals and a 1โ3% annual chance that the end user appears. The discount pays for the time and the risk.
Should I list at retail and accept wholesale offers?
Yes โ list at retail with a buy-now, and keep a private floor near the reseller price for offers. The listing works for you while the floor keeps you liquid.
Put it to work
Value any name free, find what is still available, list at 5% commission, and park where the wait earns credits.