Selling Me Your Domains!

[ParkLogic]

I get approached all the time by domain sellers wanting me to purchase their “valuable” domain names. If I have a spare few minutes and I’m a little bit interested in the domains I’ll ask, “Why do you value the domain at that price?”

Most of the time the domain seller has no idea why they are asking the price they are wanting. Nine times out of ten it’s purely based upon them thinking that this asset that they paid $10 for should now be worth $50,000 because they have it. There is an element of truth to this but I’m not convinced that I need to part with a wad of cash just because someone else thinks that I need to.

The problem is that valuing non-traffic domains is much, much more than saying, “I want $50K.” You may want $50K but I’m not going to pay $50K. Now what?

So now you’ve moved from taking the order for the domain to actually selling me the domain name. This means that if you want me to buy the domain you have to justify your price. It could be that it’s a perfect fit for my business, it has a certain amount of traffic, searches are high, my competitors are wanting to move into the space etc. This involves a lot more thought and consideration before you blurt out the price. Try doing a traditional SWOT analysis on the domain and drop a brief presentation on why I need it.

Finally, the key to get me to move is to provide some sort of urgency around the transaction. For example, my competitors are wanting the domain and it will be auctioned off on a particular date or I can buy it right here and now. If you plan on bluffing about the competitors then understand that it may be called and then you will definitely have a problem with your pricing.

Now let’s think about the world that we are now in with all of these new gTLDs available. The greater supply will reduce the demand for your domains. Be aware of this and whatever you do make sure that you have a slide that provides the reason why your .com is so much better than one of these. Don’t just spout of the pat answers, have a reason that will impact me and my business.

Remember the saying, “A domain is valued at precisely what someone is willing to pay for it.” So give me reasons for valuing the domain you’re trying to sell to me at your price. If I approach you the flip side of this is also…..”A domain is valued at what a seller is willing to part with it for.”

BTW – don’t forget the two upcoming webinars this week

Europe Traffic optimisation – I’ve run this one a heap of times and this is the first one in the European time zone.

Building an online business – this is a new webinar that will take you through how to develop a business model and cashflow for you online business.

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[Domainator]

Good read, right on the money...