I am not going to share the names of the two domain sales I made this week to protect the privacy of the buyers, but they were both hand registered within the past 7 days, and they sold for $360 and $400. I have a third domain name, which is related to one of the two that sold, and I think that one is going to sell for a little bit less today.
I want to detail the domain sales process for one of the sales, as the second sale was was similar to the first (although it was made after just 2 emails). For the first sale detailed below, as I was emailing companies based on a Google search of the product, I realized there was an alternate spelling to the product, so I registered that domain phrase too. As of 11am this morning, I only sold one of these two names, but you’ll see more information below.
My initial email to around 30 companies and people in the business:
I see that you sell custom xxxxxxxx, and my company is selling the domain name CustomXxxxxxx.com. The domain name is the exact match of the search term, and developing it could provide a SEO boost for your company in this market.
If you are interested in acquiring CustomXxxxxxx.com, please let me know. I am offering it to several xxxxxxxx companies in the next few days. Also, my company owns XXXXXXX.com and will be looking for partner opportunities in the near future, so if you have any ideas on how we could work together, please let me know.
Half way through the 30 emails I sent, I added a line about the second domain name I bought, mentioning the fact that I own it as well and would sell it. I mentioned one of my domain names that I am looking to partner on, as it’s a very well known name in this particular business and I thought it would give me added credibility.
Out of the 30 or so emails, I received nine replies. Six asked for the price of the first name, one said she wasn’t interested but wanted to know the price, one said she didn’t sell this type of product any longer, and one asked for the price on the second name. I replied to the eight interested people with an email saying the names are $900 for both and it would go to the first person who replies. I didn’t get a positive response to this BIN offer (I got 3 “no thanks” types of replies).
Two days later, I sent out a second email with everyone Blind Carbon Copied:
I am blind carbon copying the 9 people/companies who have shown an interest in CustomXxxxxxx.com and/or CustomYyyyyyyyy.com. I have opted to drop the price of the domain names to facilitate a quicker sale. Each domain name is just $360 to purchase. The domain names are registered at Moniker, a Florida-based domain registrar. If you would like both domain names, the price for the pair is $600, although I can’t sell the pair if someone agrees to buy one of the domain names first.
The first person to write back and say, “I will take it” will get the domain name. Payment may be made via Paypal.
One lady replied within an hour and said that she would take the first name for $360, and the name was transferred within a day and payment was made nearly immediately. She opened a Moniker account and didn’t have any issues using them. In less than a week, the profit from the sale was $330 after Paypal fees and the cost of the domain name, and it literally took under 2 hours for all correspondence and research.
This morning, I received an email from the person who wanted to buy the second name, and he offered $500 for both (he also asked how much Moniker charges per year). I replied that I only had one of the names remaining, and I would sell it to him for $250 – and I gave him Moniker’s price. I also let him know I was going away tomorrow so I could hopefully close the deal before I leave. I will provide an update later.
So what did I learn from this and from other recent sales to end users?
- Looks like sales under $500 are easier to make
- Domain name should be the exact match .com of a high profit margin product (custom things are generally higher margin)
- Almost all replies were from individuals or very small businesses
- I previously mentioned that registering names at Godaddy made a sale easier because everyone knows Godaddy, but it worked fine with the names being at Moniker
- Focus on one or two names at a time, sell those and repeat the process
- You might not always get what you want for the names so be flexible in pricing
- Don’t go for a “home run” with your price
- Treat everything like a learning experience – test everything from emails to pricing
- I still love finding new domain names and selling them. Yes, it’s thrilling to buy a $5k name and flip it for $10k, but when I bought the name I knew it was worth more than I was paying. Finding unregistered names that has value is more fun for me although I probably couldn’t run my business simply by doing this.
- Not all valuable domain names are registered!