It is a familiar refrain within the domain world – I have some great domain names, but I am not getting any sales.
In some cases, the owner may be overlooking weaknesses in the names. However, even solid domain names can go year after year without buyer interest. How is that possible?
There Are So Many Potential Buyers For This Domain…
A few years ago when Mike Mann dropped a large number of domains, I picked up a few, including a two-word .com that could be applied to several sectors, although a barber shop is the most obvious. The name couples a popular positive term, one that sold well in past, with a generic term related to a barbershop. It is not appropriate to share the specific name, since I still have it listed for sale, but as I write the following example, I have that name in mind.
How many buyers might there be for this domain name? According to IBISWorld there are 151,516 barbershops in the US. Of course, the name could also find use outside the US, at least within the English speaking world. About 15% of the world speak English.
For round numbers, let’s assume that there are at least 250,000 barbershops in the English speaking world. Surely there will be multiple buyers for my domain name? How is it possible not a single one of those 250,000 business owners placed an offer for my domain name over more than two years?
What Fraction Are Seeking A Name?
It is not the total number of barbershops that is the right number to use. Rather, we are interested in how many barbershops are either starting up, needing a domain name, or renaming for a better name. That is more difficult to assess, but definitely there are far fewer seeking a name than the total number of barbershops.
The IBISWorld report gives the rate of growth of barbershops over recent years. While growth has averaged 5.8% per annum over the past five years, that is deceptive, as the trend over a decade is only half that. Also, the year-over-year growth for the most recent year is near to zero.
Also, some barbershops will not even choose to have their own website, perhaps using a social media page or local directory or no online presence.
A few existing barbershops will be rebranding, but probably not much more than 1 in 75 of the total number of barbershops are actively looking for a new name. So that reduces the 250,000 to about 3330 English speaking barbershops that might be seeking a name. It is still an encouraging number, right? And if I count over a few years, even better.
The Fraction Willing To Buy An Aftermarket Name
But just because there are 3000+ barbershops seeking a name, does not mean that they will consider my name. Certain business owners, especially of a single small barbershop, have the view, right or wrong, that they can get an acceptable domain name via hand registration, and are not open to aftermarket names.
It is hard to know that fraction, that will depend on the sector, but for barbershops it could well be only 1 in 15 are open to idea of an aftermarket purchase. So that reduces the 3330 down to just over 220 possibilities.
What Fraction Like This Type Of Name?
But those 220+ barbershops that are open to the idea of paying an aftermarket price, will have specific ideas on what type of name they want. Some might want a name that feels elegant, others want a catchy, or short, name, etc. Some might like a name built on a personal name, or some unique characteristic of their barbershop, like location.
If I am realistic, even though I like my domain name, probably not much better than 1 in 10 barbershop owners might consider it the right type of name.
Therefore the 220 potential buyers has now shrunk to maybe 22 potential buyers. This is getting tight, and we are not done yet.
What Fraction Consider This In Their Price Range?
We already excluded those who were not open to any aftermarket price, but within those willing to pay for a domain name, their budget may still rule out my name.
If you look at successful sellers, places like BuyDomains, they offer a range of prices, including some modestly priced. BuyDomains price some names at levels within the budget range of many potential buyers. I did a quick survey of their .com inventory using a few searches, and it seems that roughly 75% of the names are priced $2500 and less, and about 25% are $1000 and less.
Mike Mann tends to ask a wider range of prices, including more high ones, but as @Michael showed in his blog post Don’t Shoot The Moon, about 40% of Mike Mann’s names were priced at $2500 and less, and almost 9% were at $1000 and less. Note that this was based on an analysis from a few years ago, so prices are probably somewhat higher now.
The fraction will depend on the sector and your asking price, but let me assume that my asking price (about $1700 for this particular name) is perhaps eliminating 1/2 of those considering an aftermarket domain name. That would mean that I am now down to about 11 potential buyers for my name.
What Fraction Will Love This Name?
A domain name can get on a shortlist, but not sell unless it is the name someone finds perfect for their application. Those who sell at SquadHelp can see this in practice. Lot’s of names get on multiple short lists, without actually selling.
So thinking about similar names available for sale, what fraction of those considering my name would find it their first choice? Unless a truly remarkable name, such as a name that is incredibly clever and creative, or a name that defines the sector, it is hard to imagine this ratio is much better than 1 in 3 or 4. Applied to the 11 potential buyers from above, this suggests that there are maybe only 3 potential buyers for my name who are likely to choose my name.
What Fraction Will Find Your Name?
What fraction of those who would buy the name, will actually find the name? Perhaps the prospective buyer is only searching at a registrar, and if your name is not part of a fast transfer network, it may not come up.
To domain investors, the obvious way to see if a name is available is to enter the name in a URL and go to the lander. Surprisingly, research at SquadHelp suggested that is not the route the majority of potential buyers follow. Rather, they may Google search the name, or use various search approaches at the marketplace.
I covered The Many Ways People Might Discover Your Name earlier in the NamePros Blog. The more of these you have covered, the better the chance your name will be found by the potential buyers.
Even if 2 out of 3 potential buyers will find your name, that reduces from 3 to just 2 possible buyers who are likely to choose my domain name.
There are other factors we have not considered, such as the possibility that the buyer needs a payment plan, but you don’t offer one, or the only payment methods don’t work for them. They may be distracted by another name option suggested by the marketplace.
But even considering none of those, we see that 250,000 possibilities shrunk to just 2 in our example. The factors we assumed are not precise, and will depend on the name and sector, but the exercise has shown how few potential buyers there may be for a given name.
Improving The Odds
So what can you do to improve your chances of a sale?
In some cases, the owner may be overlooking weaknesses in the names. However, even solid domain names can go year after year without buyer interest. How is that possible?
There Are So Many Potential Buyers For This Domain…
A few years ago when Mike Mann dropped a large number of domains, I picked up a few, including a two-word .com that could be applied to several sectors, although a barber shop is the most obvious. The name couples a popular positive term, one that sold well in past, with a generic term related to a barbershop. It is not appropriate to share the specific name, since I still have it listed for sale, but as I write the following example, I have that name in mind.
How many buyers might there be for this domain name? According to IBISWorld there are 151,516 barbershops in the US. Of course, the name could also find use outside the US, at least within the English speaking world. About 15% of the world speak English.
For round numbers, let’s assume that there are at least 250,000 barbershops in the English speaking world. Surely there will be multiple buyers for my domain name? How is it possible not a single one of those 250,000 business owners placed an offer for my domain name over more than two years?
What Fraction Are Seeking A Name?
It is not the total number of barbershops that is the right number to use. Rather, we are interested in how many barbershops are either starting up, needing a domain name, or renaming for a better name. That is more difficult to assess, but definitely there are far fewer seeking a name than the total number of barbershops.
The IBISWorld report gives the rate of growth of barbershops over recent years. While growth has averaged 5.8% per annum over the past five years, that is deceptive, as the trend over a decade is only half that. Also, the year-over-year growth for the most recent year is near to zero.
Also, some barbershops will not even choose to have their own website, perhaps using a social media page or local directory or no online presence.
A few existing barbershops will be rebranding, but probably not much more than 1 in 75 of the total number of barbershops are actively looking for a new name. So that reduces the 250,000 to about 3330 English speaking barbershops that might be seeking a name. It is still an encouraging number, right? And if I count over a few years, even better.
The Fraction Willing To Buy An Aftermarket Name
But just because there are 3000+ barbershops seeking a name, does not mean that they will consider my name. Certain business owners, especially of a single small barbershop, have the view, right or wrong, that they can get an acceptable domain name via hand registration, and are not open to aftermarket names.
It is hard to know that fraction, that will depend on the sector, but for barbershops it could well be only 1 in 15 are open to idea of an aftermarket purchase. So that reduces the 3330 down to just over 220 possibilities.
What Fraction Like This Type Of Name?
But those 220+ barbershops that are open to the idea of paying an aftermarket price, will have specific ideas on what type of name they want. Some might want a name that feels elegant, others want a catchy, or short, name, etc. Some might like a name built on a personal name, or some unique characteristic of their barbershop, like location.
If I am realistic, even though I like my domain name, probably not much better than 1 in 10 barbershop owners might consider it the right type of name.
Therefore the 220 potential buyers has now shrunk to maybe 22 potential buyers. This is getting tight, and we are not done yet.
What Fraction Consider This In Their Price Range?
We already excluded those who were not open to any aftermarket price, but within those willing to pay for a domain name, their budget may still rule out my name.
If you look at successful sellers, places like BuyDomains, they offer a range of prices, including some modestly priced. BuyDomains price some names at levels within the budget range of many potential buyers. I did a quick survey of their .com inventory using a few searches, and it seems that roughly 75% of the names are priced $2500 and less, and about 25% are $1000 and less.
Mike Mann tends to ask a wider range of prices, including more high ones, but as @Michael showed in his blog post Don’t Shoot The Moon, about 40% of Mike Mann’s names were priced at $2500 and less, and almost 9% were at $1000 and less. Note that this was based on an analysis from a few years ago, so prices are probably somewhat higher now.
The fraction will depend on the sector and your asking price, but let me assume that my asking price (about $1700 for this particular name) is perhaps eliminating 1/2 of those considering an aftermarket domain name. That would mean that I am now down to about 11 potential buyers for my name.
What Fraction Will Love This Name?
A domain name can get on a shortlist, but not sell unless it is the name someone finds perfect for their application. Those who sell at SquadHelp can see this in practice. Lot’s of names get on multiple short lists, without actually selling.
So thinking about similar names available for sale, what fraction of those considering my name would find it their first choice? Unless a truly remarkable name, such as a name that is incredibly clever and creative, or a name that defines the sector, it is hard to imagine this ratio is much better than 1 in 3 or 4. Applied to the 11 potential buyers from above, this suggests that there are maybe only 3 potential buyers for my name who are likely to choose my name.
What Fraction Will Find Your Name?
What fraction of those who would buy the name, will actually find the name? Perhaps the prospective buyer is only searching at a registrar, and if your name is not part of a fast transfer network, it may not come up.
To domain investors, the obvious way to see if a name is available is to enter the name in a URL and go to the lander. Surprisingly, research at SquadHelp suggested that is not the route the majority of potential buyers follow. Rather, they may Google search the name, or use various search approaches at the marketplace.
I covered The Many Ways People Might Discover Your Name earlier in the NamePros Blog. The more of these you have covered, the better the chance your name will be found by the potential buyers.
Even if 2 out of 3 potential buyers will find your name, that reduces from 3 to just 2 possible buyers who are likely to choose my domain name.
There are other factors we have not considered, such as the possibility that the buyer needs a payment plan, but you don’t offer one, or the only payment methods don’t work for them. They may be distracted by another name option suggested by the marketplace.
But even considering none of those, we see that 250,000 possibilities shrunk to just 2 in our example. The factors we assumed are not precise, and will depend on the name and sector, but the exercise has shown how few potential buyers there may be for a given name.
Improving The Odds
So what can you do to improve your chances of a sale?
- Concentrate on sectors with strong growth. A useful resource to see how many new businesses are starting each month within a sector is the US Census Monthly Business Start Interactive Graphs.
- Get only the best names, remembering that your name not only needs to get to a short list, but actually be the chosen name.
- Pricing is hard, but carefully consider the sweet point for pricing in the sector. Price your name within the budget of many potential buyers. This is easier if you make purchases at attractive prices, and don’t waste money on names that will not sell.
- Make your name easy to find in multiple ways. Make sure the lander works, it is listed on marketplace(s), consider fast transfer networks to get in the registration stream, make sure that a Google search will find your name, etc.
- You may only have a few possible buyers, so don’t let any leads evaporate. Respond promptly and professionally to offers. Make sure that your lander builds confidence in the purchase and transfer process.
- Eliminate barriers to ownership. Consider offering lease-to-own and support for multiple currency options.