As a domain investor, I am accustomed to hear a prospective buyer tell me “the price is too high.” While they may actually be right about that, more often than not, I think they are stating that as a fact when it is more a matter of their opinion. Alternatively, they may have set a maximum budget in their head, and the asking price is beyond that.
I want to share a response that could be effective when dealing with someone who tells me the price of my domain name is too high: I simply ask them to share some examples of public domain name sales and prices that they believe are comparable to mine to prove that the price is too high.
Here’s why I believe this is effective. More often than not, the prospective buyer doesn’t really know anything about domain name valuations. They just don’t like the price or it’s above their budget. If they come back to me with some real comparable sales, I can reply with others that support my pricing. We can then try and bridge the gap.
More often than not though, the person doesn’t have any comparable sales to share. Their thoughts about my pricing are backed by nothing. When they reply about their intuition or feelings about the price, it opens the door for me to share some background information about the importance of domain name and offer some insight into the value they are getting with the right domain name.
When someone wants a domain name and does not have the budget for it, educating them may be a first step in closing a deal. Many times the person inquiring about a domain name is working on behalf of someone else. Perhaps they are someone more junior at a company or they need to convince someone else that the purchase makes sense. If I provide a good argument for why they should spend more on a domain name, that may be used to make a case for the decision maker.
I find it frustrating when someone makes an offer to buy a valuable domain name and it is clear they have not done a lick of research about domain name values beforehand. That said, perhaps a brief education about why a particular domain name is so valuable will help them come around on the price or can provide the basis for building a case for their company to acquire the domain name.