What Is Wholesale value? Domain Glossary

Why it matters

Wholesale value reflects risk and time. An investor must wait for a buyer, pay renewals and take the chance that the name never sells. So they pay less than the final sale price. A seller who needs quick cash may take a wholesale offer. A seller who can wait and market the name may earn more at retail. A buyer should know which price they are being asked to pay. A common mistake is treating wholesale sales data as proof of what an end user will pay. Use the right sales comparison for the right buyer.

Source: sullysblog.com

Where we use this term

Related terms

Wholesale sale: A wholesale sale is a domain sale to another investor or reseller instead of to the business that will use the name. Prices are lower because the buyer plans to resell at a profit.
Retail sale: A domain sale to an end user, such as a business that will use the name, at a price based on its value to that buyer. It is the opposite of a wholesale sale between investors.
End-user value: End-user value is what a domain is worth to a business that will use it, not to an investor who will resell it. It is also called retail value and is usually higher than wholesale.
Liquidity: Liquidity is how quickly a domain can be sold at a fair price. Highly liquid names have many buyers. Illiquid names may take years to sell, or sell only at a deep discount.
Portfolio sale: A portfolio sale is the sale of many domain names in one deal, often by an investor who is exiting or by a company that is cutting its holdings. The price covers the whole set.

All 205 terms

Why it matters

Where we use this term

Buying or selling a domain?