Always Good to Reconnect with a Domain Owner

Whether you are a buyer or a seller (or both), it makes sense to check back in regarding a domain name.

At the beginning of the year, I was working with a few people who had significant interest in domain names owned by my company. Unfortunately, due to their budgetary limitations, we were unable to work out a deal. I thought it might be a good time to reconnect now that a couple of months have passed.

My pricing position hasn’t really changed, but perhaps theirs has. Maybe they have a tax refund coming or they needed a gentle reminder about the domain name. They may have shifted focus to their business, figuring that they can reach out about the domain name at a later point in time. I am someone who is happy to work with a buyer to get a favorable deal done, and I am hopeful that reconnecting a short time later will give a negotiation a shot in the arm.

If you are a

Bounced Emails Can Yield Hidden Info

With most domain name privacy services, an email that is directed to the anonymized email address will automatically be forwarded to the domain owner’s email address. The sender won’t know the email address until the owner responds.

Yesterday, I was sending out some domain name offers and inquiries, and one of the emails bounced as undeliverable. This email happened to be a privacy service email, and I found a bit of a surprise when I opened it. The bounced email report showed the email address of the domain owner, and that gave me two important pieces of information that may prove to be helpful.

First and foremost, the email address will

Follow Up With a Best Offer

I make quite a few private acquisition offers via email on a daily basis. I am in constant contact with people who own domain names, and the vast (maybe 99.9%) majority of these domain names are owned people who bought the domain name with a plan to use it.

When making an offer, I try to be as reasonable as possible. I know that a low offer on a good domain name won’t elicit a response, and a high offer will hurt the chances of making a solid return on my investment. Making a reasonable offer takes some finesse, but it is an important aspect of the acquisition process for me.

More often than not, a response I receive is “the domain name is not for sale.” I have found that this sometimes really means

Opening Offer is Important

The vast majority of opening offers I receive to buy my domain names are very low. I would guesstimate the average opening offer is well under $1,000, with the majority probably being around $100. Frankly, it’s a bit disheartening and frustrating to receive a $100 offer for a domain name I bought for $xx,xxx.

On the rare occasion that I do receive a decent offer for a domain name, I get excited because I know the prospective buyer has at least done some homework. We might not end up reaching an agreement, but at least the opening offer doesn’t make the prospect look unqualified and uneducated. I try to respond to all inquiries, but I am much more inclined to ignore an uneducated offer than deal with someone who clearly doesn’t have any idea about domain name values.

When I am on the other side of the negotiating table, I take my experience with

Wedgies.com Domain Name Story is Unique

Last night, I read Anthony Ha’s  TechCrunch article about a startup called Wedgies.com and the company’s  seed funding round of $700,000. The company has some very cool social media polling tools, and it seems that others agree enough to invest in the company.

The company’s products seem interesting, but I was most interested in learning more about the Wedgies.com domain name. There often seems to be a great story when a startup acquires an excellent domain name in the aftermarket and is willing to share that story publicly. After doing a bit of research on the domain name, I learned that the founders have a very unique story about how it was able to buy Wedgies.com.

In fact, the acquisition story was

You May Get Only One Chance to Buy a Domain Name

There are quite a few ways to try and purchase a domain name in private. A buyer can negotiate directly with the owner, an anonymous offer can be placed on the domain name, a broker can be engaged to negotiate, or a domain name can be purchased through a domain marketplace. Despite all of the great options, buyers need to know that they may only get one good chance to buy a domain name.

When a prospective buyer inquires about a domain name, the domain owner may begin doing research on who the buyer is and why the buyer wants the domain name. He will also determine the value of the domain name, and a major factor is the demand for the domain name.

Continued efforts at acquiring a domain name may end up increasing the price of the domain name. A domain owner may sense desperation by the prospective buyer, and the price may be adjusted accordingly. Similarly, if the inquiries were made privately, the domain owner may assume more than one prospective buyer is interested in the domain name, and the price may also rise as a result of the perceived increase in demand.

Domain buyers should realize