Buying Domain Names

Using Escrow.com as a Negotiation Tactic

When you’re negotiating to purchase something in person, and you’re just a bit away from reaching an agreed upon price, some buyers will show the seller a pile of cash as a means of closing a deal. For instance, if the owner of a collectible wants $15,000 and you’re only willing to pay $10,000, you may pull the neat stack of $100 bills and put it on the table in front of him, telling him to “take it or leave it.”

The owner will look at the pile of cash and realize that it’s the most you (the buyer) will pay, and he needs to decide whether or not he’d rather have his collectible or the money. Once you’ve set your final offer down, you need to hold firm and walk away if you’re rejected, otherwise it will seem like you have a weak constitution and the buyer will get the better deal if you keep upping your offer.

When you are negotiating to purchase a domain name, you can’t really pull out a stack of hundreds and say “take it or leave it.” You can say it’s your final offer, but for the seller, there isn’t the lure of seeing a pile of money in front of his or her face to contemplate. However, you can use Escrow.com (or another escrow service if you prefer) to encourage the seller to make the deal.

If you think you’re very close to a deal in a negotiation, but you’re just percentage points away from making the deal, you might want to try this sales closing tactic. Tell the seller it’s your final offer and let him or her know that you’re not going any higher. Set up the deal at Escrow.com and let them know you’re doing that. You should also be clear about the fees (I like to cover them in this situation).

The seller will receive an email from Escrow.com letting them know about the transaction, and this tends to get them to realize you’ve made your final offer and if they want to make a deal on the domain name, this is it. They will receive a couple of reminder emails if they haven’t signed in to agree to the deal,and that’s something that will also remind them of the finality of your offer.

I used this tactic once and it worked. In fact, the seller and I kidded around about it after and he said it was a pretty good maneuver on my part to get him to close the deal because he really wasn’t sure about it until he received the email from Escrow.com.

Yes, Escrow.com is an advertiser, but so is Sedo, and if you happen to like their escrow service or Afternic, or Moniker, be my guest. I happen to think Escrow.com has wider brand recognition because of the company’s partnerships, and that could make it easier to close the deal, but that’s your decision.

Poll: Hand Registrations

I don’t hand register very many domain names anymore. My most recent hand registrations are SubstanceAbuseTherapist.com, SubstanceAbuseTherapists.com, FlashDiscounts.com, and FuneralRabbi.com. Those are my hand registered domain names since October 25.

I know there are a number of people who do spend considerable amounts of time hand registering domain names. Some buy trend domain names while others buy domain names they hope to re-sell very quickly. Geodomain names seem to be popular choice for hand registrations.

I am curious about how many domain names you hand register on a weekly basis. Please vote in the poll below to share this information with others.


Report: OWS to Pay $8,000 for OccupyWallStreet.net

According to a report this morning in The Atlantic Wire, the Occupy Wall Street (OWS) movement has decided to spend $8,000 to purchase the  OccupyWallStreet.net domain name. The domain name was hand registered on September 23, 2011 by a Florida resident.

It appears that OccupyWallStreet.com is already owned by someone involved with the OWS movement, although the registration has privacy protection on it. That domain name currently forwards to the group’s website at OccupyWallSt.org.

The Atlantic Wire report also cites a tweet that OWS was offered the opportunity to purchase Occupy.com for $150,000. In my opinion, the report’s author mis-labeled the owner of Occupy.com as “some domain squatters,” which is inaccurate since the domain name was purchased well before the Occupy movement started. A cybersquatting definition can be found on Wikipedia.

As I mentioned previously, the domain name is being shopped around by attorney Karen J. Bernstein  on behalf of the domain owner.

According to The Atlantic Wire report,  OWS is not interested in buying Occupy.com right now because of the high cost. Perhaps the group will raise funds via the $8,000 domain name and decide to purchase the domain name at a later date.

Thanks to RKS for sending the link.

Auction Arms Smartly Upgrades to More Relevant Domain Name

Auction Arms  is described as “the original online auction website devoted to guns and the outdoors.” Since inception, the company has used its AuctionArms.com branding for its website. According to Ammoland, the company recently underwent a domain name change, and it will now use GunAuction.com for its website.

The article quoted company CEO and founder, Manny DelaCruz, who said, “The new domain name is one that is more relevant to what we do online, and contains words that are more often searched for at the most popular search engines.”

This is something I stress when selling domain names to end user customers. A descriptive domain name can be easier to remember than a niche brand, and it can help with search engine rankings. If more people are searching for “gun auction” than for “Auction Arms,” and the company has a stronger ranking for the term, it will be beneficial.

It does appear that the company will retain its Auction Arms branding on the new website.

How Hipster Acquired Hipster.com

Hipster is a fairly well-funded start up company that has received quite a bit of good publicity in tech circles. Until recently, the company was operating on the domain name, UseHipster.com, since Hipster.com was owned by another company.

In May of 2011, Hipster announced  funding of $1 million, and I recommended that the company use some of this money to purchase the Hipster.com domain name. My belief was that as the company continues to grow and increase brand awareness, the price to acquire Hipster.com would grow as well.

Not surprisingly, the company had been trying to acquire the domain name for quite some time, and the effort finally paid off, as Hipster now owns Hipster.com.

According to  company founder, Doug Ludlow, acquiring the domain name took quite some time. “Obtaining the domain was a 7 month process of going back and forth with the original owner.  Lots of negotiation and discussion.  In the end, we reached a combination of cash and stock that worked for both parties,” said Ludlow in an email to me. “Also, a little Pabst Blue Ribbon was thrown in for good measure :)”

The price and terms of the deal remain confidential.

The company is now forwarding UseHipster.com to Hipster.com. In addition, the company already uses the @hipster Twitter account. Congratulations are in order for Ludlow and his Hipster team. I think the acquisition of the domain name now will pay big dividends.

Smart Domain Move by Trump

In a tweet made on his Twitter page this afternoon, Donald Trump, Jr. (known by many as Don) and his wife Vanessa announced the birth of their son, Tristan Trump, who was born today.

Although the newest member of the Trump family was just born, he already has his domain name  reserved  for him by the Trump Organization. Whois records show that TristanTrump.com was registered by The Trump Organization just a few days ago, on September 27, 2011.

When real estate mogul Donald Trump had his son, Barron, in 2006, the company did not immediately register BarronTrump.com, and another entity registered it. Current Whois records show that The Trump Organization now owns BarronTrump.com as well. The domain name forwards to the website of the child’s mother, MelaniaTrump.com.

Congratulations to the Trump family, which clearly understands the value of domain names. Perhaps Don should now get in touch with DomainMarket.com and work out a deal for DonTrump.com.

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