End user story...

[jasdon11]

I regged a .com name for a niche product which is the product in plural - let's say the name was DancingShoes.com (it's not - this is an example).

I contacted a few end users, one of which has several websites dedicated to selling this product online. This company enquired about the price - I gave them a figure of $600 - cheap as it's the actual product name and gets 200+ Ovt w/o.

After a day or so, they offered $300. I countered with $500, telling them that after this weekend it will be listed at tdnam for a fair bit more; I am more than happy keeping it - $500 is an absolute bargain - this same company has paid to TM another name (bearing in mind the ficticious example above, let's say their TM is 'Miracle Shoes').

Their reply....."good luck in the auction".

The point of telling you this - think about it:
* they sell this product
* they have several websites dedicated to this one product
* they were interested enough to make an offer
but...
* although they are switched on enough to TM a brand name
* although they rely on internet sales for their income re this product
they still don't see the importance in obtaining the product name, even though they could get it for a paltry $500....

If they don't end up going out of business, and ever come back for the name - boy are they going to have to pay for it...

..............

There is still a helluva lot of upward potential in the domain market if this is a representative example of current end user thinking!

 

[INVIGOR]

I couldn't agree more. Business owners simply don't see the full light yet. They focus on trademark and branding campaigns without capitalizing on the value of potential customers through things such as generic names. I think there's going to be a HUGE gold rush for the guys that hang on to names. Dot COMS will only go up in value as the market is saturated with ccTLDs and other extensions.

 

[Warrior]

After a day or so, they offered $300. I countered with $500, telling them that after this weekend it will be listed at tdnam for a fair bit more;

I think this is where you went wrong, nobody likes to be pressured. What you said to him was; "Buy it at $500 or I'm putting it up for auction".

I would of countered with; $500 is the most I can do at this time and left it at that.

 

[Theo]

Just remember that by registering the domain of a product name (singular, plural) and attempting to sell it to its makers is part of the UDRP basis by which you can lose it.

 

[jasdon11]

Just remember that by registering the domain of a product name (singular, plural) and attempting to sell it to its makers is part of the UDRP basis by which you can lose it.

This is a totally generic name - think 'golf clubs', 'cheap holidays', 'sexy lingerie' - they are not the sole producer of this product.

I think this is where you went wrong, nobody likes to be pressured. What you said to him was; "Buy it at $500 or I'm putting it up for auction".

I would of countered with; $500 is the most I can do at this time and left it at that.

Seriously, they can take it or leave it - that's the last chance they will ever have of getting it for that price; I honestly believe I would've done them a favour selling it to them at that price.

 

[Ilze]

If they are too cheap to spend 500 bucks, they will not spend the money necessary to go to UDRP.

 

[Theo]

If they are too cheap to spend 500 bucks, they will not spend the money necessary to go to UDRP.

Famous last words. You'd be surprised how often the exact opposite happens.

 

[jasdon11]

Famous last words. You'd be surprised how often the exact opposite happens.

Now this is true.

Lawyers can make many thousands out of one case, and bugger-all out of buying a name for a few hundred dollars.

 

[hugegrowth]

I agree that it's surprising they wouldn't pay $500 for the generic term of the product they're selling. Maybe they think you're bluffing and will accept their $300. Or, they'll come back and pay the $500. Seems like a low price for a generic product term though.

I still think the power of domain names isn't even on the radar of most people/businesses. Despite how many people are on these forums, we are still a minority group.

 

[jasdon11]

I agree that it's surprising they wouldn't pay $500 for the generic term of the product they're selling. Maybe they think you're bluffing and will accept their $300. Or, they'll come back and pay the $500. Seems like a low price for a generic product term though.

I still think the power of domain names isn't even on the radar of most people/businesses. Despite how many people are on these forums, we are still a minority group.

It is a low price, that's why I'm amazed. The actual product has only been available for a couple of years - the reason I came across it, I was looking for a similar product for one of my kids, and, like you do, checked on availability.

The figures are;

Ovt w/o: 256
Wordtracker per day: 7
# PPC ads: 20

The product sells at around $40 each (manufacturing costs probably $5, development costs negligable).

Hell, the more I think about it, the more I think i should knock up a site and sell the damn things :yes:

 

[katherine]

I often get the feeling that end users are reluctant to buy domains because they see this as paying a ransom. They fail to understand that the purchase of a domain is not just an expenditure but a smart investment.

 

[acesfull]

I often get the feeling that end users are reluctant to buy domains because they see this as paying a ransom. They fail to understand that the purchase of a domain is not just an expenditure but a smart investment.

I like the ones who say something like, "but domains cost $9 at godaddy."

And - Some of the domains I offered at $500 to $1000, a few years ago,... I'm glad they turned me down now! (And I regret selling some for $5,000)

 

[jasdon11]

I often get the feeling that end users are reluctant to buy domains because they see this as paying a ransom. They fail to understand that the purchase of a domain is not just an expenditure but a smart investment.

Agreed.

But how does the advertising industry get around this?

One of the lines in my initial email describes what good value the name is compared to traditional advertising. For the price of a crappy business card sized ad in a throw away publication, they can buy the domain and reap the rewards forever....

I like the ones who say something like, "but domains cost $9 at godaddy."

And - Some of the domains I offered at $500 to $1000, a few years ago,... I'm glad they turned me down now! (And I regret selling some for $5,000)

Agree with this too - I'm not bothered that they didn't buy it - just shocked!

 

[MacyT.]

But how does the advertising industry get around this?

One of the lines in my initial email describes what good value the name is compared to traditional advertising. For the price of a crappy business card sized ad in a throw away publication, they can buy the domain and reap the rewards forever....

Agree with this too - I'm not bothered that they didn't buy it - just shocked!

You can point out to to them why they should buy it until you are red in the face. But the problem - for those who don't have the creme-de-la-creme of generics - is that we are carting around a product that people don't really want/or think they need. And people don't appreciate being approached online, being told they need something they never sought out, and on top of it - are getting a great deal for yeah...even just $500.

It's an entirely different challenge from say a new skincare product. People always want something new and better with promises of less wrinkles,etc. So, already they are willing and open to listening about why your skincare product costs a premium. BUT, it's important to keep in mind that they probably approached you. Not the other way around.

I'm just pointing out the obvious...perhaps for my own clarity on this issue. People don't necessarily want what we are selling. No matter how much we think they need it - they don't feel the same way right now. Until this changes on a broader scale, all of us with the not-so-premium, but still good names will have this challenge.