Offer a Payment Plan to Close Domain Deal

Elliot Silver
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5

I don’t necessarily like it when a buyer stretches out payments for a domain name, but offering it can be a smart move. I recently sold a domain name, and during negotiations, the buyer indicated that funds were a bit tight at the moment, but he wanted to buy the domain name. To keep the negotiation opened and to ensure that I was able to get my asking price, I offered him a payment plan, and we were able to come to an agreement.

Here’s what I recommend if you offer a payment plan or are asked to offer one:

  • Consider using an escrow service that Moniker offers or Escrow.com offers (need to contact them directly) to ensure both parties live up to their end of agreement with an impartial company acting as an intermediary.
  • Domain owner should keep possession of the domain name (or see above) until final payment is made. Owner can change DNS if necessary and asked.
  • Make sure everything is in writing so buyer and seller have the same expectations. I recommend having a domain attorney write the agreement, especially if it involves a considerable sum of money.
  • Be clear on what happens if buyer stops paying. In my opinion, the domain owner should keep all previous payments and the domain name.

Making an Offer Despite Domain Privacy Services

Elliot Silver
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9

While doing Whois searches to try and acquire domain names in the aftermarket, I often encounter privacy services, and I generally don’t send an email inquiry. I’ve always figured the owner wasn’t interested in selling if he or she had the privacy shield in place. On second thought now, it might be a good opportunity to contact these people.

Did you know that you could send an email to the privacy email address on file, and many privacy guard services will forward your email directly to the owner?   This is the case with many companies, so if you have a compelling offer, you might want to try emailing the privacy service.

Despite the improving economy, some domain owners are still selling domain names that would not have been previously on the market. If you send a good offer, you might be surprised at the results. At the very least, you will probably be more likely to contact a domain owner that doesn’t receive as many inquiries as he would if his email address wasn’t privatized.

Keep in mind that this could result in an angry reply, as many owners really do not wish to be solicited even if you think your offer is good. One thing to keep in mind is that you should always make an offer that you wouldn’t be embarrassed by if you met the domain owner in person. There have been a couple of times where I’ve made the mistake of a lowball offer and it’s generally embarrassing 🙂

Pricing the Advertising on Your Website

Elliot Silver
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13

Coming up with a price structure for advertising on your website is more of an art than a science. If you price your ad spots too high, nobody will want to advertise (or they won’t renew), and if you price it too low, you could leave a lot of money on the table. So the question becomes, “how much do I charge for advertising on my website?”

Here are the things I think you need to consider when coming up with your website’s pricing:

Prices other sites are charging

  • Media buyers and advertisers want to determine how much a customer acquisition will cost them on your site vs. other websites. If your site gets 1,000 visits a month and charges $200/banner and another site gets 10,000 visits a month and charges $350 for the same banner and placement, you can probably guess where they will spend their money. Perhaps they will run a test with you if you’re lucky, but your pricing should be realistic.

Audience interaction with your website

  • The more comments people post, the more engaged your readers tend to be with your website. If they are interacting with your site, you have a captive audience. Other examples of interaction are Twitter re-tweets and will soon be Facebook Likes once that rolls out further. If people recommend your site to others, advertisers will probably want to be there.

Traffic to your website and rankings (Compete/Alexa/Quantcast).

  • Everyone uses different analytics sources it seems, but the metrics companies generally don’t lie. If you say your website gets 2,000 unique visits a day and you’re Alexa ranking is 85,000 and Compete is at 100,000, you are probably looking at funky traffic #s or perhaps your stat counter is counting bots. Advertisers don’t want to server advertisements (and pay for them) to bots. Bots don’t buy products 🙂

Comparable cost for a PPC campaign

  • If advertisers are paying $2.00 a click on Adsense or other PPC campaign, and they can get more clicks (that are targeted) from your site with the same sales rate, they will probably want to advertise. Determine the going rate for an Adsense campaign on a site like yours and test how many clicks each banner spot typically gets (using internal banners or affiliate banners that track clicks) and price accordingly.

How targeted your site is

  • You can charge a lot more for your website if you get considerable targeted traffic. If lots of people are coming to your site to learn something specific or to read about something specific, they all become potential targets for advertisers. If you have a very broad website, many advertisements won’t be relevant to the visitors, so advertisers will expect to pay less

Your time commitment

  • From an advertiser’s perspective, this isn’t really important, but from a publisher’s perspective, it’s critical. Unless you are independently wealthy, you need to consider the amount of time you put into your website and be paid accordingly. As my business has grown, I couldn’t afford to spend the time and effort writing articles if I wasn’t making enough revenue. I love blogging and sharing, but it just wouldn’t make sense for this to be a detriment to my business growth. Time investment and revenue potential are two things that need to balance for your site to be a financial success.

Domain Intelligence: Domain Registrations Can Reveal Plans & Strategy

Elliot Silver
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0

One of the bigger news stories this morning in the mobile and social media space was that the popular Farmville game may be coming to the iPhone, iPad, and/or Android sometime in the near future. The impetus for these news stories? Apparently the company where Farmville gamemaker Zynga registers its domain name became the owner of farmvilleandroid.com, farmvilleipad.com, farmvilleiphone.com and farmvillesms.com.

Although it’s quite reasonable to think the domain registrations could simply be defensive in nature so cybersquatters don’t purchase them (like the parked and privately registered iphonefarmville.com appears to be), these domain registrations could give away valuable strategic intelligence to competitors. Likewise, it could also contribute to cybersquatters speculating further on a company’s online strategy, leading to speculative typo domain registrations even prior to launch.

With Domain monitoring tools from companies like Domain Tools, it’s getting more difficult for large companies to keep upcoming launches and product upgrades top secret. Instead of sticking to corporate domain regulations that many companies have that require them to register domain names at a particular domain registrar, it would be smart to buy them with privacy guard at other popular registrars like Name.com, Godaddy, or Register.com, where they would be lost amongst the millions of other domain names.

That is… unless they want the publicity and leaks for “top secret” plans and strategies.

Not All “Generic” Domain Names are Generic

Elliot Silver
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10

When I first started buying domain names in around 2003, I didn’t understand the legalities of registering domain names that contained trademarks. In fact, I registered a few domain names that were infringing on the marks of other companies. After getting a cease and desist letter from one company and giving the registration fee domain name to them, I decided I didn’t want to take a chance with this type of name.

In going through my portfolio to try and sell some names to end users, I realized that I have a few names that aren’t as generic as I once thought.

I own a number of city-keyword domain names, and I started looking through them to sell a few to end user buyers. I own quite a few cityMortgage.com and cityMortgages.com domain names. One is a city in Texas with somewhere around 100,000 people, and I am sure many of the city’s homeowners have mortgages, and there are a number of companies offering mortgages in this city.

In doing some research, I found that there is a bank in Maryland that uses the Texas city name + Bank (I don’t want to draw attention to the name I own, so I am leaving the bank name out). Without getting into legalities since I am not a legal expert, it would probably be okay to sell this City Mortgages.com name to a mortgage company in Texas, but if I pitched it to the Bank in Maryland, they could very well claim trademark infringement. I suppose they could do that anyway, but having an email from me offering to sell the name would make their case stronger.

Point of this post is that when you do reach out to end users to sell generic domain names, you need to be sure that the domain name is actually generic. I almost sent this bank an email assuming they were located in the city rather than using the name as their trademark, and had I not seen the Maryland area code on the site, I probably would have sent it.

There are many generic terms that are used by companies to form distinctive trademarks, and there is a whole lot of gray area, so use caution.

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