I like reading the NamePros posts of Bob Hawkes who is a successful domain analyst, writer and informal educator.
While I am doing research on sell-through rate (STR) in domain investing, I had the chance two read his two articles. His first article is dated 2019 and titled Domain Name Sell-Through Rates and his second article is dated 2024 and titled Eleven Things About Domain Name Sell-Through Rates.
After reading, I summarized them as you can see below. But I suggest you to read both of these articles in detail.
The sell-through rate in domain investing refers to the percentage of domains sold from a portfolio in a given year. For instance, with a 2% sell-through rate and 600 domains, you might sell around 12 domains annually. This rate is more relevant when viewed on a personal level rather than relying on industry averages—though new investors may struggle to estimate theirs accurately.
Experienced investors often use their historical sell-through data to guide decisions and adapt based on portfolio quality. It’s beneficial to calculate your personal rate yearly and set goals to either increase that rate or improve the profit per sale. For example, if you started with a 0.5% rate but now have higher-quality domains and better promotion, a 1–2% rate could be realistic.
Factors That Influence Sell-Through Rate:
- Domain Quality
Poor-quality names rarely sell, while better ones increase your chances. - Visibility & Listing
Domains not listed with strong landing pages or on marketplaces will likely have low sales. Listing across platforms improves exposure and boosts the rate. - Pricing
Getting pricing right is crucial. Premium names can command high prices, but overall, better-aligned pricing leads to more sales. Some investors choose higher prices with fewer sales to aim for bigger profits. - Sales Approach (Inbound vs. Outbound)
Actively seeking buyers or using social media for promotion can enhance your chances compared to relying solely on inbound interest. - Domain Type
Highly desirable domains—like short .coms or popular dictionary words—may sell quickly, but their value also depends on what you paid versus what you sell them for. - Buy-It-Now (BIN) Pricing
Listing with BIN prices often increases sales since it simplifies the buying process and encourages quick decisions.
Do not view low sell-through rates as failure. Unlike mass-market products, domain names are highly unique and often have no immediate need driving demand. In that sense, domains are more comparable to original artwork than to common consumer goods.
Ultimately, your success in domain investing depends not just on how often you sell, but also on how much profit you make per sale, and how well you manage costs.
