Tip to Find a Domain Buyer

There have been a number of times where I’ve sold an end user buyer more than one domain name at different times. After completing one deal, I have a look around at various venues to see if there are other names in the same/similar vertical that could be acquired and flipped at a profit.

It’s a risk to buy names with the hopes of flipping to a specific person, but if you have a good gut feel and the name can be used by other parties, it can be worth the risk. I want to share a tip about how you can sell a name to someone based on a sale you saw (ie from Ron’s weekly sales report).

Have a look at the DNJournal sales report every week. Take some of the high value names that sold and perform a Whois search on the name. See who bought the name and try to find out as much information about the company as you can to determine why they bought the name and why they paid what they paid.

Once you figure this out, look at the buyer’s website and/or LinkedIn page to see what other products or services the company offers. Check out who owns the corresponding domain names (NOT trademark names, but descriptive types of names). If you can buy those names for a good deal, you can then present them to the buyer of the reported name from Ron’s report.

Here’s a made up example. Let’s say that XYZ Widgets & Devices spent six figures to buy eWidgets.com. After doing some research, you see that eDevices.com is for sale for low 4 figures (it is NOT). You can purchase that domain name and then offer it to the buyer of eWidgets.com at a good (but profitable) price. You already know the company values domain names and you know they just spend six figures on a different name.

Don’t forget these important factors:

  • Do not buy/offer trademark names
  • Make sure you contact the right person at the company (contact the seller for details)
  • Names should be  salable  to other parties if buyer isn’t interested
  • Don’t try to sell a name before you bought it

When Pricing for End Users, Leave Room For a Concession

In almost all of my domain deals – both on the buy and sell side, a negotiation has produced a better sales price for a domain name. When I am buying a domain name, I will almost never pay full price, and on the sell side, I almost never sell a domain name for my asking price. This is important to keep in mind when pricing your domain names.

When I am pitching a domain name for sale, I know that a buyer is going to want a price or term concession to close a deal. I hardly ever close a deal for my exact asking price, and that is okay (unless it’s priced to move on my blog or other domain venue where the price is more geared to resellers and is therefore more firm).

Going in to a negotiation with an end user buyer, I know the buyer is going to try to get a better price, and I price the names accordingly. Generally speaking, I will ask about 10% higher than I think the name will sell for, knowing that most buyers will offer less, and I hope to meet somewhere between the offer and my asking price. While I may not get the exact price I originally set, if I get close to it, I will be happy.

Similar to home sales, where the buyer has an ideal price and an acceptable price, I tend to price my domain names with this in mind when selling to end users. If the price is too high, the name is not going to produce an offer because buyers think you’re unreasonable. Price it too low and you’ll leave money on the table. Price it right, and you’ll sell it.

Check Your Passwords: Yahoo Warning

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I want to share a warning that Yahoo sent to some account holders, and it’s worth noting because it’s a serious issue. Apparently someone was able to obtain email address information and matching passwords for Associated Content, and this could pose an issue for some people who use the same password (or password naming convention) on multiple websites.

Here’s what Yahoo emailed to account holders who were impacted:

Thick Skin Is Necessary When Selling Domain Names To End Users

During the last couple of years, I’ve sold quite a few domain names to “end user” buyers. From my perspective, an end user buyer is a person or company in the field or industry related to the domain name you are selling, and the buyer of the domain name will use the name as a part of their business.

Generally speaking, an end user buyer is more likely to pay a higher price than someone in the domain industry who wants to re-sell or monetize the domain name. An end user buyer will know exactly how much it costs to acquire a customer and know what it will take to compete in the field with a website on the domain name. They also know the value of the “goodwill” in the domain name for their company’s positioning in the field. They can therefore justify spending more for the name because they know how much it will impact their bottom line.

The problem when trying to sell to end users is that many do not realize how valuable an exact match domain name can be. Some of them have a limited online presence and others simply own a domain name that matches their business name. Many companies don’t do online advertising campaigns, and some would have no idea how to value an online lead. Yes, it’s easy to say that they could buy your name for less than it would cost for a lifetime of Adwords expenses, but converting that into sales is difficult.

With that being said, many end user contacts will give you an insultingly low offer, while others will not make an offer but will be rude to you in their replies. No matter how negative the reply is, don’t get into a “pissing contest” with the other person. They can do much more damage than it’s worth, and to have a few minutes of feeling like a champ with a witty reply, you could set yourself up for problems (like them emailing other prospects to tell them that you’re an a-hole!).

Since April, I received a $50 offer on a name that I privately sold for over $20,000, was told that I am “crazy” for asking six figures for a name I privately  sold for close to my asking price, and I was cursed at on the phone for asking for $50,000 for another name that I sold a short time later. I also received countless sarcastic “good luck” type of emails that I simply replied “thanks” in response to when others may have offered the witty, “thanks, but I don’t need good luck,” which of course, can lead to a testy exchange.

In many cases, I could have gone back to these people and gloated when I closed these sales, but that does me no good either. With the crappy economy, people will likely be jealous of your success and you could become a target of their ire.

No matter what type of negative reply you receive from an  uninterested  end user buyer, do not engage in an email exchange with them that turns nasty. Once you confirm they aren’t interested in your name, move on (unless they  genuinely  have questions about domain names).

You have a lot more to lose than they have, especially if they choose to be particularly prickly towards you.

Tips to Run a Successful (Large) Private Auction on a Platform Like Sedo

Last week, I wrote about the ongoing  Brands-and-Jingles .ME Auction at Sedo. I think it’s quite smart to work with a company like Sedo (or a competitor like Aftermarket.com) to hold a large auction event like this because it will bring interested buyers who may end up buying more than one domain name. It will almost certainly generate more revenue than individual listings at an aftermarket website.

If you think you have a good enough group of domain names to run a private auction on a platform like Sedo or Aftermarket.com I want to share some tips on how you can drive traffic to your auction and generate additional revenue.

Keep Your Whois Info Updated!

I just received an email from a domain broker who appears to be trying to work out a deal on behalf of a client to acquire a domain name. Unfortunately for this broker, I do not own the domain name that was emailed to me.

I looked into why I received the email, and I assumed that the owner’s email address is similar to mine and the broker made an error.  I was incorrect. Strangely enough, the Whois contact is an email address @ a domain name that I own, which I picked up earlier this year or last year at NameJet. The owner likely isn’t receiving notifications for his domain name, and he isn’t receiving offers like this either.

Someone else might try to take possession of the domain name that is linked to the account. That is of course illegal and not something I would do. However, it seems like it would be easy to do should the name I own have been bought by someone else.

People are often critical of using free email services like Gmail and Hotmail. I think it beats managing your own email in many cases, and this is one example of why.

Perhaps the broker will pick up the phone and call the registrant to let him know about the offer and that the email address isn’t connected. Maybe she’ll be able to close two deals!