If you’ve been around Flippa long enough, chances are you’re quite familiar with “The $1 Reserve” auction. People call it a “No Reserve” auction, because a $1 Reserve auction means that the first bid at the lowest-possible price-point ($1) effectively meets the reserve price, and anyone can win.
For this reason, these kinds of auctions can be quite exciting for the buyer; deals can be found. On the other hand, once the reserve has been lifted, there are no boundaries — and it’s been known to cause some serious bidding wars.
But if you’re the seller, unless you bought the domain for $1, there’s bound to be a sense of trepidation: “What if my valuable domain sells for $10?!”
It has happened; it does happen; and it will continue to. It’s the nature of anomalies and weird blips in the marketplace. Maybe an auction doesn’t get enough exposure, has a wonky end-time (after midnight, for instance), or simply isn’t valued the same way by one audience as it would be some time later.
These are all uncontrollable factors, which is why it takes serious guts to launch a $1 Reserve auction of any sort. Two factors that alleviate the risk are the caliber of inventory (the marketplace can mostly be trusted to deliver fair-market prices), and a seller’s following — the latter of which takes time and persistence to build.
One up-and-coming Flippa Domain Seller, Andreas Pazer, managed to do just that — with very little prior sales and Flippa followers under his belt.
I had a chat with him about his tactics and strategy in selling his domain, Carabiner.com, and how he decided to let-it-rip with a $1 Reserve price.
Are you willing to disclose where you acquired Carabiner.com?
I acquired Carabiner.com at the Sedo Marketplace. I just searched the premium section of domains and found it. It was a hard decision to buy this domain, because it was not cheap. But after a little research and a premium domain appraisal, my decision was certain.
What influenced you to sell the domain, and why did you choose Flippa?
I bought this domain mainly to resell it — I was sure it would sell well on Flippa. Unlike other sites, where millions of domains are listed, there are not as many [competing listings] throughout Flippa. Given this and the great available upgrades it was pretty easy to reach the “Most Active” section to appeal to the right buyers.
What were your listing tactics? (i.e. opening bid amount, auction duration, choosing to use the Flippa Parking Page, etc)
My listing tactics were simple: start low without a reserve price to get the most attention to the listing. I was so sure it would do well that I started the auction at just $1 and without any reserve price. Of course I chose the longest duration to get the most exposure possible. Additionally, I used the Flippa Parking Page to get even more interested viewers.
Describe the due-diligence process you provided for your buyers (i.e. detailed description with history, analytics and other screenshots, etc)
I tried to show interested bidders as much information as possible. I listed all information I received from the premium domain appraisal, as well as any related sales data I could find. Additionally, I added screenshots from the back-end of the domain parking, to show available Analytics.
Were you pleased with the outcome? Did it meet your expectations?
Yes, I am surely pleased with the outcome — it exceeded my expectations. Even if it took a bit of time because of many low-bids, it increased very fast, because [of the emerging bidding-war]. The last day was the most important: the price doubled in just a few hours. In the end, my plan worked. I even got many offers after the sale from people who missed the auction, offering a few thousand more for the domain. They are now all redirected to the new owner. He shouldn’t have any issues with reselling it for a higher price now. A truly win-win situation!
Anything else you’d like to share about your selling experience?
This was only possible with the great help of Flippa and their perfect customer support. Even the [developers] helped me out with a few issues. This wouldn’t be possible on other marketplaces. Flippa is truly unique and ready to help at any time. I would also like to thank all the watchers, bidders and those commenting throughout who made this possible. They can always contact me through my profile for further questions or projects. I am always ready to help.
Please note that the buyer has requested the sale-price to be withheld; it should also be noted that we will be broadcasting an interview with said-buyer soon, on his experience acquiring this domain.
Thanks to ydant for the photo!