Need collective widsom from members...

[mcom1999]

I contacted some medical companies for a domain I have. One of them repiled back. Their Director of Internet Marketing asked me how much.

I researched the company and found they are a public company that is growing amazingly fast. Their revenues are going to be close to a billion dollars this year. In fact, their revenues increased 47% from last year.

What should my strategy be?

I am going to contact their competitors and see if there is any interest. I can't figure out how much to ask for. Either I can get a small win ($500-$1000) or go for $1000-$5000.

Your advice.....

 

[Jack Gordon]

I think most members here would agree that your price should not be based on the revenues of the interested party, but on the value of the name. Just because they have money in their pocket does not mean they are suckers (in fact, it suggests just the opposite)

Think about it this way. If the interested party was low on $$, what would you reasonably accept for the domain? Figure out the number that makes you happy, then stick with it, no matter who the buyer happens to be.

This is not only a recipe for success, but for keeping your sanity as well.

Good luck!

 

[Bob]

Well said FrontRow.

I am not an advocate of asking a huge amount of $$ just because the buyer has $$. In your case, start with the amount you would have accepted before you started marketing the name. If it was $300, then ask $400 (allow a little room on the bottom side for negotiation).

Most of all, do not let greed get in your way of a possible sale. I see that happen all the time in here. People want $100 for a name and cannot find a buyer. Then an end-user contacts them. They then want $1000 and lose the sale when they would have accepted $100 in the first place.

At most, if an end-user has the money to pay for a domain, the MOST you should do is then become a little more firm in your **original** asking price.

Remember, if you get more than you paid, then you turned a profit. You cannot lose by taking a profit.

That is my 2 DNF cents worth :razz:

-Bob

 

[mcom1999]

I see what you are saying. Basically, don't get greedy. I agree with that strategy. My only hesitation is that I would hate to sell a domain for $500 if I later found out that the company was willing to pay $5000.

This game requires a lot of different skills - marketing, negotiating, sales,..

 

[mcom1999]

I agree with you also. I have been foolish in the past to get greedy and not sell a domain for a decent price.

I remember in one post you sold a domain for several thousand. You mentioned there was a conversation with the buyer whereby you got a better sense of how serious he was. Would it make sense that I request to talk with this potential buyer before quoting a price?

Thanks..

 

[CoolHost.com]

Originally posted by mcom1999
I see what you are saying. Basically, don't get greedy. I agree with that strategy. My only hesitation is that I would hate to sell a domain for $500 if I later found out that the company was willing to pay $5000.

This game requires a lot of different skills - marketing, negotiating, sales,..

Ahh ... welcome to the 'Bigs!
Good Luck.

 

[Jack Gordon]

It would be easier to help you if we knew what the domain was. Feel free to PM me and I'll give you my honest, objective opinion of how best to proceed.

 

[Shiftlock]

I'm going to disagree somewhat with what the others have said. After all, the object here is to make as much money as possible, and if the buyer has deep pockets, there's a possibility you can score big. What's even more important though is how much they want the domain. Set your asking price high, and if they reject it, ask them what they think is fair, then see if you can get them to settle somewhere in between.

What I'm saying is that your initial asking price should be open for negotiation, so set it high and work down, because you can't set it low and negotiate up. This has worked for me many times in the past, and I almost always leave the table feeling like I got as much as I possibly could have for the domain. I hope that doesn't make me look "greedy." It's just business.

 

[Jack Gordon]

My only trouble with that approach is that domains are such a unique entity that by overpricing them, it is easy to lose a prospect's interest for good.

This is not the case so much for truly great domains, but lets face it - most domains are not that great.

Greed works two ways - if the buyer sees a seller trying to squeeze too much out of, say, orangejuice.com, what's to keep them from registering floridaorangejuice.com for $10?

Forgetting the specifics of the above example, the principle is that he has something someone else wants, but even though it is unique, it is probably not irreplacable. By not getting too greedy, he can open a good-faith negotiation and make a nice profit.

Again, this logic does not apply for truly great names. That's why it would be helpful to know the domain we are talking about here.