The Name I’ve Received The Most Inquiries About in The Last Month…

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Yesterday, I ran a $100 contest asking people to guess which domain name of mine has received the most purchase inquiries in the last month. I gave a list of domain names, some that are developed but most that are parked.

There were two people who correctly guessed BoracayHotels.com, Jen and Mike. Both of these people will split the $100 prize, and I’ll be in touch to get Paypal payment information.

Although BoracayHotels.com has received the most inquiries, it hasn’t been sold yet. I had a deal in place to sell the name to a domain investor for a little under $10,000 last year, but the buyer failed to pay.

I’ve turned down a number of solid offers on the name in the $5-8k range, but I haven’t sold it yet. Most of the recent offers have either been very low or no offer was made after letting the potential buyers know what I’ve turned down in the past.

In any case, it was interesting to see the psychology behind some of the guesses. Names like SHS.com, Burbank.com, and others are developed, and that has led to fewer inquiries. Also, some people guessed long shots to avoid sharing the prize.

I appreciate your taking the time to participate. I am sure I’ll have another contest to give away some money soon.

Domain Name Marketplaces

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There are many places where you can purchase domain names in the aftermarket. I wanted to share an updated list of aftermarket websites with you. Some of these websites sell privately-owned domain names and others sell company-owned domain names.

I did not include auction sites such as NameJet or Snapnames or forums like DNForum. I also didn’t include eBay since it’s fairly challenging to search for specific types of domain names.

If I missed any aftermarket websites, I hope you will add them in the comment section.

Where else do you buy or sell your domain names in the aftermarket?

Interesting Article About Seller Financing

During the last few years, I’ve heard about a number of people offering seller financing on their domain name deals. If a buyer can’t pay for a domain name purchase entirely up front, and he doesn’t wish to seek a more traditional financing option like Domain Capital (or doesn’t qualify), seller financing may be an option.

There are a number of advantages to self  financing  a deal, and there is also a fair amount of risk involved for both parties. Inc. Magazine has an article about seller financing, and I think it’s a good read if you’ve ever considered this option when selling a domain name.

I self-financed one deal, and it hasn’t turned out as great as I hoped. The plus side was that after the first payment was received, the deal was profitable for my company. The downside is that the buyer hasn’t paid off the purchase yet, despite passing the final payment date last month. The buyer is an end user who has a small business, and I felt guilty about demanding payment. He has promised payment in Q1.

Self financing can be a decent option to close a domain sale, but you should know the risks and weigh them against the advantages.

Thanks to Lonnie for sharing.

Prevalence of NDA Deals on Domain Names

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I hardly ever report purchase sales prices when I complete a transaction on a domain name. I know that many others prefer to keep their business dealings private, too.

It’s often cited that Ron Jackson’s weekly domain sales report is just the tip of the iceberg when you consider the number of sales that aren’t reported due to non-disclosure agreement (NDA). This “secrecy” is what some conspiracy theorists refer to when they state that unreported sales numbers are pretty much BS and perhaps non-existent.

I want to give you an idea of just how prevalent NDAs and private sales are, and it’s certainly something you can try out if you’d like to see for yourself.

Last week, I went through some old inquiry emails I made to acquire domain names in private. I sent about 15 follow ups to emails I had sent in the last 18 months. A few people replied, and two of those people told me their domain names were sold (I had offered $7k for one who came back with a $50k asking price, and I offered $33k for another who said she paid more for it).

Of those two people who sold their names, I asked what the sales price was. The person who had priced her name at $50k told me the price was private but it was for much more than she had offered it to me. The second person told me it was sold for an undisclosed amount that she couldn’t share.

Neither of these people are domain investors (both women coincidentally), and they have no reason to report the sale price. These types of transactions happen every day, and most are deals between people and/or companies that aren’t domain investors and don’t have any reason to report sales or even know who they would tell if they wanted to report the sale. They probably don’t even know why they would want the sale reported anyway since it’s most likely a somewhat straightforward business transaction.

If you want to see how prevalent private domain sales are, I recommend checking out the Whois History tool after you learn about a company’s rebranding or product launch on a newly acquired domain name and ask the former owner how much the sale was for. My bet is you’ll find almost all of them are private and unreported. I’ve tried to get sale prices for articles, and you’ll almost always find that sales prices are private.

What Do You Think of This Domain Sales Tactic?

In the midst of a private negotiation about a domain name I wanted to buy, I received an email from the domain owner. Instead of picking up where we left off, it was a brand new email addressed to more than one person. The email explained that all recipients had inquired about the domain name and we could all reply with our best offer.

It’s an interesting tactic, sort of similar to an auction, but instead of dealing in private, the seller chose to make it more public. With email addresses exposed, all recipients could see who the other potential buyers were, possibly sizing up their spending capabilities and possibly revealing future plans.

I’ve inquired about thousands of domain names in private over the years, and this has only happened to me a couple of times. One time the recipients were BCC’d and the other time the recipients were simply CC’d.

When I received the emails it annoyed me enough to not even reply. I figured that if I beat some of the end users on the email, I would be overpaying. I also didn’t want to make my purchase public, as I thought I was dealing with a private negotiation.

What do you think of this domain name sales tactic?

The Money Won’t Always Be On The Table

Just about every day, I spend some time reaching out to end user buyers to try and sell a domain name. Frequently, I will receive an offer for one of these domain names, either as an opening offer or a counter offer to my price. More often than not, the counter is less than the price at which I want to sell the domain name.

When this happens and the buyer won’t budge from his offer, I have a few choices:

  • Sell the domain name for less than the price I want
  • Keep the domain name
  • Use the offer as a means of extracting a higher offer from someone else

No matter what decision is made, it’s important to keep in mind that the offer that was made to you may not be there in the future. I like to think that offers that have been made, especially those that were solicited by me, would be valid for an indefinite period of time. Unfortunately, that is not the case.

Some buyers may have money they are willing to spend at that point in time, and once the time passes, that money is no longer available. Others may have waning interest in the domain name after time passes.

When you have an offer on the table, it’s important to realize this offer will likely be pulled back in a short period of time, and that you can’t count on a buyer to follow through days or weeks later. As much as I hope that a rejected offer is followed up by a better offer, that’s not always the case and frequently isn’t the case.

Depending on your situation, it might benefit you to take a bit less than you wanted, especially if the responses are fewer than you expected.