In a sales negotiation for my higher value domain names, I am frequently asked something along the lines of this: “If the domain name is so valuable, why is it still for sale?” The implication is that my domain name hasn’t sold because it is overpriced.
This is a simplistic way to look at it, but it makes sense that this would cross a buyer’s mind. Despite the fact that domain names have had commercial value for 30 years, people are still woefully uneducated about them. It is also a common response tactic to try and get the seller to come off the asking price.
When I receive this type of response, I tend to try and educate the prospective buyer instead of talking down to him or her. I explain that if the domain name was priced lower – sometimes mentioning the offer that was made – it would have been sold to someone else a long time ago. I tend to mention the number of offers that were turned down – particularly if much higher offers were submitted.
I may also share some comparable sales if I think that could be educational. I try to keep the number of comps to 5, and I do my best to ensure they are truly comparable sales. For instance, it’s silly to mention the $30 million sale of Voice.com when selling a one word .com domain name I have priced at $150,000.
In addition to this, I mention the growing value of exceptional .com domain names. People understand inflation and the increasing value of real estate, so I may relate the value of domain names to the value of everything else that has increased in the last several years.
I doubt I’ve sold any domain names because of these responses, but it can help educate someone and may give them a better idea of why a domain name is still for sale.
First, I tell them it hasn’t sold yet for the same reason that beachfront property takes much longer to sell than a lot in a trailer park.
Then, I tell them it took eighteen years to sell Whisky.com – for $3.1 million.
The Whisky analogy has closed some deals because the name they’re after is usually priced far less.
Regardless, it’s a huge red flag when they try that argument. It’s a sign that they’re fairly ignorant about the industry.
What a waste of time to educate them
They are just toying with you…
“Show me the Money!”
Being polite like Elliot and Costello pays off at the long run. Not to mention is a perfect answer.