I am not sure about you, but I regularly receive a reply from a prospective buyer who tries to tell me my domain name is worth less than the price I set. “That domain name isn’t worth six figures,” or something along those lines, is a response I receive on a regular basis. It’s like somehow the lawyer, software engineer, or digital marketing manager is also an expert in domain name valuation.
Despite an obvious lack of knowledge about domain name values, some people are quick to opine that a domain name is overpriced. Domain name valuation is subjective (and dynamic), but there is enough information and data available that a buyer should at least be able to get an idea about what a domain name is worth before inquiring about it.
What works best for me is replying by asking them how they came to the conclusion that the domain name is not worth six figures. When I respond to offers, I usually provide a list of domain name sales I believe are somewhat comparable, so asking them for insight as to why my domain name is not worth an amount similar to other comparable sales I shared is usually disarming.
More often than not, the prospect will reply by mentioning that the domain name is not worth my asking price to him or her. Most people don’t seem to go to the effort to find comps that are in line with their valuation or offer. I typically respond by reminding them that the domain name’s value does not correspond to their usage of the domain name but to the potential usage by anyone.
Sometimes this works and the buyer gains a better understanding of why I priced the domain name at the level its priced, and other times the prospect gets frustrated that the domain name is worth more than they have budgeted or can afford.
At the end of the day, I think this is a relatively non-confrontational way to educate a buyer.