Negotiating

[CdnBigD]

Hey Guys,

I've done some manual email outreach to find potential buyers for a few of my geo+keyword domains. I have responses from people who are interested and asking how much. I do have figures in mind for each but those are just pure guesses.

How do you guys know what price to put into the initial email response to these questions? (Knowing the buyer will ultimately counter with a lower figure)

Do you tend to base the initial price off of the buyer's profession and how much they charge their clients? Or off of the population of the city? Perhaps off of the amount of their local competition? Maybe you have a ballpark price in mind for most geo domains of which the client's don't have high value services (ie. plumbing, massage, spa etc..)

Thanks!

 

[Biggie]

Hey Guys,

I've done some manual email outreach to find potential buyers for a few of my geo+keyword domains. I have responses from people who are interested and asking how much. I do have figures in mind for each but those are just pure guesses.

give them the guesses, then

or write prices down on a piece of cardboard and throw a dart at it, wherever it lands, that's the price.

why solicit someone, when you don't what amount to ask for your domain?


do some research on comparable categories and see what those names sold for.

imo....

 

[CdnBigD]

Thanks Biggie.. as helpful as always. ;-)

Why question my soliciting people when I already said I do have prices in mind (before i sent out the emails)? I was just curious what other domainers usually do to figure our their pricing? And any other related negotiating tips.

I have looked at other sales but the majority of geo+keyword domain sales do not get published as their private sales.

 

[fpforum]

I personally take a few things into consideration..
1) The industry..If it's an industry that is mainly web based (a web hosting/design company..etc) then I'd be looking to price more than a company that might not really use the net as much (a plumbing company..etc).
2) I try to do research on the business. Use mantra, google..etc. and look them up. See if you can find any details about the number of employees, the annual revenue..etc.

These are the 2 main things I look for...But it's also good to try and find other perks you can push towards them. Maybe the domain gets a little traffic or has all other extensions taken. These are great perks to try and throw in there which may increase buyer confidence.

 

[WhiteCloud]

In an outbound sale you are going to have to set the range. We have has success using $X,XXX , $XX, XXX , or $XXX,XXX. The second and third ranges are very large and leave room for negotiations. Most companies are going to want to know if you expectations are realistic and within their budget.

 

[Domain.BUZZ]

Do you tend to base the initial price off of the buyer's profession and how much they charge their clients? Or off of the population of the city? Perhaps off of the amount of their local competition? Maybe you have a ballpark price in mind for most geo domains of which the client's don't have high value services (ie. plumbing, massage, spa etc..)

Use Namebio to get historic sales for that keyword. For example, if you look up "dentist" dot coms that sold for more than $3000, you'll find 8 x records. If you look up "lawyer" then you'll see over 50 x records of sales exceeding $3000. So it would appear that lawyers are willing to pay more than dentists.

 

[Biggie]

So it would appear that lawyers are willing to pay more than dentists.

maybe the sellers who owned the dentists names sold too cheap,

or maybe the sellers paid less for their dentists names than the sellers with the lawyers names, so their profit was actually more than the lawyers roi

maybe everybody who owned names in those categories checked the same sites for history and only asked within that range, because they were fearful of losing a sale, if they asked for more.

perhaps you're right, maybe ....

 

[flippawilson]

In an outbound sale you are going to have to set the range. We have has success using $X,XXX , $XX, XXX , or $XXX,XXX. The second and third ranges are very large and leave room for negotiations. Most companies are going to want to know if you expectations are realistic and within their budget.

I was thinking the same thing with the revenue portion of the said company.It's like,well, actually it is real estate work.I forgot that system that real estate agents use(MBL?)to find the market price of certain houses.

With searching the companies rev, I suppose if a person does not come off stalker"ish", one could weld with great leverage talking about how much the prospect makes in their industry.

Price ranges work very well because we tend to have selective memory when we hear figures.
The classic example is when someone goes to an dealership, the salesman gets to a point where he gives a specific price. When the contract comes around, the half aware customer says "wait a second, you told me$X,xxx for this car".

The more experience salesman(or saleswoman)knows to say something like"buyers with this type of lifestyle/need/taste typically purchase cars in the ranges of $X,xxx -$XX,XXX".

Phone conversation will always be king over email ones.In person beats all. The possible problem with email prospecting is, you may have 2-3 email(5max maybe) where you can elicit info and get away with not giving a price just yet.

But there is always an advantage out there.In person, unless you are sharply proficient at reading people, you will have very little strategy on them(cold approach).

But ahh, on the interwebs, while we lack that very much needed intrapersonal communication, we must, must, must do research on our buyers first. I'm very new to this but understand universal principles.
One veteran once told me KNOW YOUR CUSTOMERS.