If you have a great domain name for sale, you probably don’t need selling points to convince a buyer that the domain name is a worthwhile investment or purchase. However, the greatest obstacle I face is convincing a buyer it’s worth what I think it’s worth in order to close a deal.
I want to share a selling point that you can use if you face this same challenge with one of your domain names: the domain name can be resold, perhaps for a profit.
I like to remind the buyer, especially a buyer that is planning to use the domain name to replace his current website or in addition to his website, that he can re-sell the domain name in the future. Buying a domain name is not like spending money on SEM or paying for newspaper advertising or something that has a limited shelf life and is gone once the money is spent. For all intents and purposes, a great domain name should retain its value and will likely increase in value over time.
There are many reasons why people exit businesses, and when the buyer decides to exit his business, he can sell the domain name to someone else, and it will probably be at a greater price if he added goodwill to the domain name by developing it. Even if the buyer didn’t put the domain name to good use, if it’s a great domain name, it can be sold to another company or even a competitor. Heck, the domain name might be worth more than the actual value of the company’s goodwill and brand!
When you are in the process of selling a domain name and are negotiating a price, you should remind the buyer that he or she is making an investment that may actually grow in value.
2 years ago, I offered a GeoServiceGallery.com 3 keyword .com domain to the direct user, who was using a 4 keyword .com with a filler word in the middle for $500. They said they don’t need it, blah blah, 2 years later, they come, and say all their traffic is going to my site, I need to buy this domain. Well it ended up costing them $1500 now, plus thousands in lost business.
That’s an excellent point that I’d never thought of as a selling point. Some end users remain clueless as to the resale value of their domains, even after they spend money to acquire them.
the domain name can be resold – it is a classic greater fool theory – yet I don’t rule it out as a sale pitch. Great post.
A nice USP to add into the mix, for sure. But I do agree the product is only worth what a buyers willing to pay for it.
It actually is an asset to a company
Would love to see a future Q&A post on how they are treated from an accounting standpoint
Owning a company in a space with a lot of the industry generic product keyword domains will have more value to intelligent buyers when they decide to sell their company than one that doesn’t own them.
There so many 2 word hand regs still available in tons of industries out there. Most end users haven’t figured it out yet. But a few in almost every industry have and they are the ones who own tons of names when looking up WhoIs information.