Buying Domain Names

FitnessTrainer.com: Why I Stopped Bidding & Some Buying Advice

Fitness TrainerWhen I was looking at Snapnames the other day, I saw an auction for FitnessTrainer.com, and I placed a bid on it. The domain name went to auction on Thursday afternoon, and the auction continued for a couple of hours after its original close time, with 5 minute extensions following last minute bids. FitnessTrainer.com ended up selling for $20,888.

Had I won the domain name, my plan would have been to build it in a similar fashion to DogWalker.com and CatSitter.com. I opted to stop bidding for a couple of reasons. First, the price was more than I wanted to spend on a directory domain name right now. Second, and the reason I am writing this post, is because I wasn’t sure if enough people were called (and known as) fitness trainers.

When buying a great domain name like this, it’s important to dig deep into the numbers and actually think about the usage of the name. There are a lot more listings in Google for “personal trainer” than “fitness trainer,” and the Adwords keyword tool indicates that many more people perform searches for fitness trainers than personal trainers. When you are buying a domain name like this, think about the term and how it is used in every day by the people who will be visiting the site and/or advertising.

I still think FitnessTrainer.com is a solid name, but I couldn’t justify the price because so many people refer to fitness trainers as personal trainers. At the end of the day, there would still be great interest in the FitnessTrainer.com domain name and term, but my model wouldn’t have been able to justify the price.

Photo: http://www.flickr.com/photos/positivelyfit/ / CC BY-SA 2.0

Don’t Give Up a Deal Over Pennies

It’s always important to get a great deal when trying to buy a domain name to flip, but if you like a name at a rough price range enough to consider buying it, don’t fret over a few percentage points. From experience, I hesitated on a deal that I now regret not making.

I recently tried to buy a domain name for several hundred dollars, and the negotiation came down to the owner wanting $100 more than I wanted to pay.   With escrow fees, it would have been less than a couple hundred dollars more, but I thought (and still think) the name is worth between $2-3,000 on a quick flip. I ended up walking away from the deal because I thought the seller would figure that having my cash would be better than keeping the domain name he hasn’t sold in 8+ years of ownership.

It’s needless to say, but I checked the Whois today (several weeks later) and the domain name has changed hands. Perhaps someone else saw that the price was lowered or maybe the owner became motivated to sell it. Whatever the case is, I am sure I couldn’t buy the name today without greatly overpaying. It’s my loss, but an important lesson for people who are privately buying domain names.

If you see value in a domain name, get the best price you can, but don’t fret over a couple of percentage points. If the domain name is worth what you think it’s worth, and you are fairly close to buying it but just can’t hammer out the exact deal you want, think about what happens if the owner sells it to someone else. If you’d regret it, you should probably jump on the name.

Domain names are one of a kind, unique assets. When they are sold to a developer, end user, or unmotivated seller, you will lose your chance to get a deal. If your gut says to buy it, don’t hesitate to pull the trigger, even if the deal isn’t perfect.

Tracking Down a Domain Owner

One of the most exciting aspects of being a domain investor is being able to track down a domain name’s owner. It’s one thing to email an offer to the Whois contact and then negotiate to buy a domain name. It’s a completely different feeling when I have to do some research on the domain owner when the email bounces and phone number doesn’t work. It’s almost more of a satisfying feeling that is tough to describe, but anyone who has gone the extra few miles to get a domain name knows how rewarding it is.

For this article, I am going to document how I am going to try to track down the owner of FarmersMarkets.com, a domain name I want to purchase. As I write this, I have no idea how the situation will turn out, but even if it doesn’t result in an acquisition, I can share some of the techniques I use. As you read this, keep in mind I am writing as I am working, so tense may be off a bit (sorry, grammar police).

FarmersMarkets.com is a domain name that doesn’t resolve. In 2008 and 2009, I sent 2 offers for the name, one of which was $5,000, and I didn’t get a reply (or a bounced email). I recently tried to call the Whois contact, but the phone number didn’t work.

I Googled the owner’s name (Mary Van Maren) in quotes and added the word “Whois” after the name.   There were just a few results, but I learned the owner also owns EmergencyAlert.com, WebmasterWeek.com, and NaturalOrganics.com. This is important because I like the first and last names, so if necessary, I can add those as part of the negotiation to get a better price.

When I did this search, I also found a big clue. There was an article in the Stanford Graduate School of Business online magazine about Mary and her husband’s cigar company, as well as her recent work history.   This tells me several things. 1) She went to Stanford, and it’s likely she doesn’t need to sell the domain to raise capital. 2) She owns a business that is unrelated to farmer’s markets. 3) Her company is called Cigar Locker, so I can probably call the business to get in touch. 4) The article was written in 1998, so much has probably changed.

I visited the Cigar Locker website, which was listed in the Stanford article. Unfortunately, this led to a dead end, as the website does not resolve for me. I did a Whois search of CigarLocker.com, and I found the domain name is registered to Mary’s husband (Kevin Foley) – or at least her husband when the article was written in 1998. This Whois listing has a different phone number. Phone number was disconnected when I called.

Since the Whois page had a website screenshot archived on it, I am going to visit Archive.org to see if I can get another phone number for the business from there. Perhaps the site is down, but the business is still operational, and the business line is different from the Whois contact info. I found an archived page from July 0f 2007, but unfortunately the phone number is the same. The copyright date in the footer is from 2004 – so it doesn’t look like that was updated much.

I did find one other clue on the archived website’s home page. I called the toll free number below the local number, and it was an answering machine for GiftBasket.com. Although the Whois information is private for GiftBasket.com, I did find that the Whois History showed that the husband of the owner of FarmersMarkets.com is/was the owner of GiftBasket.com as recently as January 2, 2010. The phone number is also different from the others, although I suspect it will call GiftBasket.com.   It’s worth a try anyway…   no dice.

Now I am going to try WhitePages.com, where I will search for the owner of FarmersMarkets.com and her husband to see if I can find a phone number.   The one thing I need to remember is that the addresses have been in California, and since I am in New York, I need to keep the 3 hour time difference in mind when I call. No dice when searching for her, but I did find a number for the husband, which is different than the other phone numbers. I tried several times, but the number is always busy.

I did another Google search for Mary with the city of Granite Bay listed. I found an interesting article about how she plans to start a VC fund and is hoping for $50 million in funding. Apparently, “she is very well connected.”   With this said, it’s really looking doubtful that my offer will mean enough to her to get her to sell. However, the article was written in 2000, so who knows what happened. I also found her ZoomInfo page, and the domain name for one of her companies, iConvention.com, is now owned by Name Administration… another dead end.

I did another Google search for the husband’s name and Granite Bay, CA to see what I could find. I found that he has another domain name, ChristmasShops.com. These people seem to understand how valuable generic domain names are.

Unfortunately, I have not been able to get in touch with the owner of FarmersMarkets.com.   I will keep trying to see what else I can find, but it doesn’t seem likely that I will be able to buy this domain name or make an offer. Of course, if I needed this domain name, I could always try to visit their home, but I think that can be a bit shady. A UPS/FedEx package with a certified offer might be worth trying.

What are some of the things you do to track down a domain owner to buy a domain name?

Photo: http://www.flickr.com/photos/stephenjohnbryde/ / CC BY-NC-SA 2.0

Be Aware of a Domain Name’s Previous Business Activity

One of the most favorable things I look for when acquiring a domain name is a note on the homepage that says the company is no longer in business – or a default hosting page after knowing there was previously a company’s website on it. Businesses go under all the time, but the underlying domain name could still be a valuable asset the former owners don’t even realize has significant value.

I was looking at a domain name that I would like to acquire this morning, and it has all of the signs that it could be available for the right price. There is a note that says the company, which had been in business for 75 years, had closed 6 months ago. The email addresses were bouncing, and the phone numbers weren’t working. This got me excited, as I love tracking down a domain owner. This is similar to how I was able to buy Customs.com a couple of years ago… good research to find a former partner in the firm.

While concurrently doing due diligence on the domain name of interest and doing some research to find contact information for the former President of the company, I came across a website that had consumer complaints about the company. Some of the complaints were pretty harsh:

  • “This place is a disaster”
  • “their behavior has been totally unprofessional”
  • “my advice is to stay away.”
  • “Won’t be visiting… or ordering from their website again”

Although the company was in business for 75 years and these comments may be accumulated over time, it’s still good to be aware of these comments that can easily be seen by anyone who does a Google search for the domain name. The domain name has a dual meaning, so it wouldn’t be used in the same way as it was before, but there are still a few websites with negative comments, and people might infer that they are about a new website that would be built down the road once the site launches.

Although most people would recognize the difference between what was there and what would be built there, some potential advertisers could see the complaints and simply pass on advertising. Domain investors need to keep in mind that comments about a business on a domain name could have a detrimental impact on the domain name’s value.

Double Dose of Development Tips: Develop Complementary Sites & Use a Coming Soon Page

I want to offer you two separate development tips today, although they aren’t exactly related to each other. I have had very good luck with DogWalker.com, a site which now boasts somewhere around 80 paid/paying customers. As more and more companies signed up, I began to seek ways to scale this model.   $10-20k/annually is great revenue for a website like this, but it’s not exactly enough for someone to do full time – even if it grows at a 15% clip.

I thought about different ways to scale, and one idea I had was to acquire another domain name in a similar vertical. I wouldn’t want to cannibalize my listings by marketing a product that was too similar, yet I would want to offer something that was different, enabling me to have a cross-marketing opportunity. I sought out quite a number of names, and most owners were asking for more than I would be willing to pay – even knowing that the model would work. I finally came across CatSitter.com, and made the acquisition.

CatSitter.com will be a great complementary website, and it is going to make money. Not only does it get traffic (had 19 visits yesterday), but many companies that offer dog walking also offer cat sitting services and/or cat boarding. I also paid much less for CatSitter.com, and I can use the same platform as DogWalker.com, lowering my development costs. I can then pass the savings along to customers, in the form of a cross-marketing discount.

One of the smartest things I did after launching DogWalker.com was contact several large organizations and franchises to seek their assistance marketing to members/franchisees, and the largest pet care company agreed to do so. The result of this was that I have about 18 listings from one company’s franchisees throughout the US, and more franchisees sign up each day.   Many of these franchisees offer cat sitting services, and I already have commitments from paying customers on DogWalker.com who are waiting to pay for a CatSitter.com listing when the site goes live.

The second development tip I have today is somewhat unrelated, but it’s important. Despite the fact that CatSitter.com is making a bit of money at Parked, I have taken the parked page down and put a search engine optimized coming soon page up. I anticipate launching the site very soon, but I want the visitors to know there is something better coming. I stupidly forgot to do this several days ago, but it will be going up shortly.

Not only will this be used for lead generation in the meantime, it will also be used to show Google/Bing that something is coming after being parked for 8 years. When I did this with DogWalker.com for 3 weeks, I had 3 inquiries (plus 3 or 4 sale inquiries), and the site launched as a PR1.   Although there will be less time in between the coming soon page and the site for CatSitter.com than there was for DogWalker.com, it’s still something I am going to do and would advise you to do.

Well, that’s it for me for today. Hope these tips were helpful!

Use a Payment Plan When Buying Domain Names to Lower Your Risk

Here’s an idea I had a while back and have used successfully one time on a quick domain resale. When coming to terms with a domain seller, I added a payment plan to acquire the domain name over a set period of time. Using Moniker to handle this type of payment plan/extended escrow, I agreed to pay $xx,xxx over a 12 month period without a prepayment penalty. If I stopped paying, the domain seller would get all payments up to date and receive the domain name back.

Essentially what I did was give myself the opportunity to quickly sell the domain name in one month for 1/12th of the purchase price, in 2 months for 1/6th of my purchase price…etc. Fortunately, I was able to sell the domain name at a profit within 2 weeks of its acquisition, but had I not been able to do so, I would have had cash in my pocket and the ability to sell the domain name over the course of a year.

Of course not all domain sellers will offer or agree to a payment plan, and some may but would want more money for the domain name – either up front or built into the overall sale. It just so happened that the domain seller offered a payment plan before we even closed, which is what gave me the idea in the first place.

Technically, the buyer could also pay 1/12% of the sales price for the opportunity to re-sell at a profit, and if the buyer can’t find a person to whom he could flip it at a profit, he could simply cancel the deal, losing out on just a little bit of money. This is a pretty good way to reduce your risk when you’re simply looking to flip a domain name.

Recent Posts

Negotiating Too Hard on a Domain Name Sale

1
We've all been there before. Your asking price out of the gate is much higher than a buyer is willing to spend. Maybe you're...

Bid to Be Lead Sponsor of our PMC Jersey

0
John Berryhill and I are riding in this year's Pan-Mass Challenge to raise funds and awareness for Dana-Farber Cancer Institute. Each year we ride,...

Domain Finance Calculator Offered by Catchy.com

0
Francois Carrillo is best known for his Domaining.com industry news aggregator. He also owns Catchy.com, a platform for selling domain names. Francois emailed me to...

GoDaddy Verification an Unnecessary Speed Bump

1
I won a domain name at GoDaddy Auctions on April 18, and it was delivered to my GoDaddy account this morning at around 4am....

Ask Platforms to Reconnect on Failed Deals

1
I've had many agreed upon deals die at the finish line. The buyer agreed to purchase a domain name - sometimes after a lengthy...