When talking to potential buyers, be sure your language reflects their viewpoint and concerns. It is easy to slip into domainer language and talk about number of TLDs (top level domains) the term is registered in, or the age of the domain name. In most cases that will be counter productive. Here are a few things to avoid, unless specifically asked, along with alternative language to use if that topic does come up.
Domain Age
When domainers are acquiring domain names, they almost always consider domain age, the period over which the domain name has been continuously registered. That makes sense - names which were claimed early on, and have been renewed, are more likely to be valuable.
But end users in most, not all, cases are looking for a name that will be fresh, positive and somewhat unique. They may well view an aged name as one that no one wanted for many years, and see that as a negative. They may also worry about the certainty of the ownership chain, or possible past abuse that damages the name, in an aged domain name.
An end user is unlikely to ask about age at all. I have heard several domain investors and brokers who have sold millions of dollars in domain names say that they never had a client ask about age. If the topic of domain age does come up, try to respond that you have been waiting for just the right qualified buyer, which at least puts a positive spin on domain age.
Number of TLDs
The number of TLDs, domain extensions, in which a term is registered usually is a measure of domain quality and the importance of the term. I always look at how many TLDs, and how the main legacy ones are being used, before I consider an acquisition. I cover tools to do this in a recent NamePros Blog post.
Let’s view it from the perspective of a business owner considering a domain name, however. If I tell them the exact term is registered in 95 different extensions, they may well think, oh lots of businesses will have the same Internet address except for the extension. I want something that is more unique for my business.
It may make sense, if you are at the stage of being asked to justify a price, to mention TLDs, but don’t invoke the idea at the outset. If the topic is raised, be prepared to justify why this is the best available extension for the potential purchaser.
Automated Valuations
If the automated domain worth estimate is significantly above the price you are asking, it is tempting to include that information. In some cases it may make sense to do so.
However, there are dangers as well. If the potential client goes to check valuations at GoDaddy they will be presented with other names available to hand register or buy, and that may reduce the chance they will purchase your domain name. Also, if they see that there are multiple automated estimates that vary extensively, the usual case, that may shake their confidence in the entire domain aftermarket. Also, if you mention automated valuations, and they have read or been told that automated valuations are worthless, and it is easy to find that statement on NamePros, they may be bothered that you brought up automated valuations at all.
All of that said, I think there can be select situations where automated valuations can help close a sale, particularly in cases where the main estimates are consistent with each other. It is good to be prepared if the potential buyer does bring them up, with a justification for your price compared to other sales.
How Much You Have Invested In The Domain Name
If you are discussing price, and the buyer is insisting on a really low price, it may be tempting to state that you bought it for more than they are offering, that was ten years ago and prices have gone up, you have paid renewals, and taken the risk of the domain name never selling. To the buyer, how much you have invested, or that most of your names may never sell so you need a big margin on those that do, is really immaterial. Think from the buyer perspective, always.
Sales Of Similar Names
To a domain investor, it is helpful to know what similar names have sold for, and when. However, when a potential end user sees a list of similar name sales, they may simply think that already too many businesses have chosen a similar name. Also, almost certainly prior sales will show a huge variation in price, and that will shake trust in name valuations. Be prepared for the possibility that the buyer might bring up prior sales, however. Have at hand a justification for your pricing with comparator sales.
How Many Businesses Use This Name
Domain investors use tools such as OpenCorporates to see how many businesses and organizations use a name they are considering. While that is important information when acquiring a name, or if selling the domain to a domain name investor, I think it would be a negative if promoting to an end user. Businesses don’t view many others using a similar name as a positive.
Don’t Say Too Much Before You Listen
I do essentially no outbound personally, but reading accounts on NamePros from those who do effectively outbound, most recommend making your first contact very short, perhaps saying little more than that the name is available, and how to make contact for questions or purchase.
When someone expresses interest in a domain name, it is hard to resist making the strong, detailed case for the domain name right away. However, it probably is better to let the potential purchaser drive the conversation. What concerns do they have? Is it about the purchase process, how the name will be transferred, who else is using the extension if it is not a
Express Value From User Perspective
If the conversation does get to the question of worth of the domain name, express value from a user perspective, considering factors such as
Domain Descriptions
While there are pros and cons of including descriptions on your domain name landers, SquadHelp best practice research suggests that use of categories and descriptions help domain name sale sell-through rate. The research found that names with descriptions have about a 2.6x improvement in sell-through.
One advantage of a description is that if it includes relevant keywords not directly in the domain name it may help search find your lander in some cases. But what else should be included in your descriptions?
The SquadHelp best practice document covers the importance of both emotions, the feelings the name evokes, and ideas, the ways a name could be used. They explain it with the example
A well-written description for selling to a domainer on a site like NamePros is quite different from that first pitch for your domain name to an end user. Always keep in mind who you are talking to!
If you want to know how to calculate measures that you should only mention to other domainers, perhaps our recent NamePros Blog post on free domain name research tools will help.
Domain Age
When domainers are acquiring domain names, they almost always consider domain age, the period over which the domain name has been continuously registered. That makes sense - names which were claimed early on, and have been renewed, are more likely to be valuable.
But end users in most, not all, cases are looking for a name that will be fresh, positive and somewhat unique. They may well view an aged name as one that no one wanted for many years, and see that as a negative. They may also worry about the certainty of the ownership chain, or possible past abuse that damages the name, in an aged domain name.
An end user is unlikely to ask about age at all. I have heard several domain investors and brokers who have sold millions of dollars in domain names say that they never had a client ask about age. If the topic of domain age does come up, try to respond that you have been waiting for just the right qualified buyer, which at least puts a positive spin on domain age.
Number of TLDs
The number of TLDs, domain extensions, in which a term is registered usually is a measure of domain quality and the importance of the term. I always look at how many TLDs, and how the main legacy ones are being used, before I consider an acquisition. I cover tools to do this in a recent NamePros Blog post.
Let’s view it from the perspective of a business owner considering a domain name, however. If I tell them the exact term is registered in 95 different extensions, they may well think, oh lots of businesses will have the same Internet address except for the extension. I want something that is more unique for my business.
It may make sense, if you are at the stage of being asked to justify a price, to mention TLDs, but don’t invoke the idea at the outset. If the topic is raised, be prepared to justify why this is the best available extension for the potential purchaser.
Automated Valuations
If the automated domain worth estimate is significantly above the price you are asking, it is tempting to include that information. In some cases it may make sense to do so.
However, there are dangers as well. If the potential client goes to check valuations at GoDaddy they will be presented with other names available to hand register or buy, and that may reduce the chance they will purchase your domain name. Also, if they see that there are multiple automated estimates that vary extensively, the usual case, that may shake their confidence in the entire domain aftermarket. Also, if you mention automated valuations, and they have read or been told that automated valuations are worthless, and it is easy to find that statement on NamePros, they may be bothered that you brought up automated valuations at all.
All of that said, I think there can be select situations where automated valuations can help close a sale, particularly in cases where the main estimates are consistent with each other. It is good to be prepared if the potential buyer does bring them up, with a justification for your price compared to other sales.
How Much You Have Invested In The Domain Name
If you are discussing price, and the buyer is insisting on a really low price, it may be tempting to state that you bought it for more than they are offering, that was ten years ago and prices have gone up, you have paid renewals, and taken the risk of the domain name never selling. To the buyer, how much you have invested, or that most of your names may never sell so you need a big margin on those that do, is really immaterial. Think from the buyer perspective, always.
Sales Of Similar Names
To a domain investor, it is helpful to know what similar names have sold for, and when. However, when a potential end user sees a list of similar name sales, they may simply think that already too many businesses have chosen a similar name. Also, almost certainly prior sales will show a huge variation in price, and that will shake trust in name valuations. Be prepared for the possibility that the buyer might bring up prior sales, however. Have at hand a justification for your pricing with comparator sales.
How Many Businesses Use This Name
Domain investors use tools such as OpenCorporates to see how many businesses and organizations use a name they are considering. While that is important information when acquiring a name, or if selling the domain to a domain name investor, I think it would be a negative if promoting to an end user. Businesses don’t view many others using a similar name as a positive.
Don’t Say Too Much Before You Listen
I do essentially no outbound personally, but reading accounts on NamePros from those who do effectively outbound, most recommend making your first contact very short, perhaps saying little more than that the name is available, and how to make contact for questions or purchase.
When someone expresses interest in a domain name, it is hard to resist making the strong, detailed case for the domain name right away. However, it probably is better to let the potential purchaser drive the conversation. What concerns do they have? Is it about the purchase process, how the name will be transferred, who else is using the extension if it is not a
.com, how they can be sure you are the real owner, how quickly they can get the name, payment options, etc. Express Value From User Perspective
If the conversation does get to the question of worth of the domain name, express value from a user perspective, considering factors such as
- How many more orders, customers, etc. may result from having the new, better name?
- While difficult to quantize, what is the worth of increased respect from having a higher value domain name?
- What is the cost of leaked emails or inquiries to more obvious domain names?
- If the business is currently spending money on online advertising, what SEO benefits will result in advertising savings?
- Will the new domain name be more likely to lead to clicks of links on social media, where research shows that more attractive names get more clicks, and what is the economic benefit from that?
- The new name is more easily shared in word-of-mouth endorsements, because it is easily remembered and correctly spelled. What is the worth of that to the business?
Domain Descriptions
While there are pros and cons of including descriptions on your domain name landers, SquadHelp best practice research suggests that use of categories and descriptions help domain name sale sell-through rate. The research found that names with descriptions have about a 2.6x improvement in sell-through.
One advantage of a description is that if it includes relevant keywords not directly in the domain name it may help search find your lander in some cases. But what else should be included in your descriptions?
The SquadHelp best practice document covers the importance of both emotions, the feelings the name evokes, and ideas, the ways a name could be used. They explain it with the example
HonestHill
The best lander or inquiry descriptions are probably short, with a sentence or two promoting the name, along with a call to action for the next step in information or acquisition. Of course, the greatness of great names should be obvious, so don’t feel you have to write much!Honest is a big, powerful emotion that connects to emotions like trust and reliability. The word 'hill' connects to the big ideas of growth, trending upwards and succeeding.
A well-written description for selling to a domainer on a site like NamePros is quite different from that first pitch for your domain name to an end user. Always keep in mind who you are talking to!
If you want to know how to calculate measures that you should only mention to other domainers, perhaps our recent NamePros Blog post on free domain name research tools will help.
