NameSilo

Adding Value; Business Model/Plan Supporting Domain

Labeled as discuss in General Domain Discussion started by ThatNameGuy, Jan 15, 2019.

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  1. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    I haven't seen any talk on NP about adding value to a domain by providing the buyer with a short business model/plan for how to best monetize the domain. Does anyone do that?

    While I'm still new to this game, most of the domains I register have a purpose in mind. I've written dozens of business plans/models ranging from 1 to 40 pages. What I'm referring to here is a 1 pager 500 words or less.that accompanies the domain. If you Google "short business plan" you can find dozens of templates you can use.

    You may want to consider developing your own template that attaches to each domain you offer to sell. The fact that just 2-3% of the typical domain portfolio sells off each year is a horrendous pathetic statistic, and I sincerely believe I can do better for any number of reasons. I don't know what the majority of these brokers do or don't do to sell domains, but they must not do much:xf.rolleyes:

    Anyone employ other strategies to sell domains, or to add value? Inquiring minds would luv to know. Thanks
     
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  2. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    Most people who buy a domain in the aftermarket already want the domain and have a plan for it. I don't think they need any plan on how they might use the domain. IMHO. But if a 1 paragraph description puts you in as a serious seller, I think it might not do any harm. If surplus to requirements. Personally. I think it is unnecessary, and probably a waste of time and space.
     
  3. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    I hear you, but buying a domain without at least a little background from the sellers perspective is a lot like buying car without an owners manual, or an appliance without any paperwork...imho. Buying a domain because you like it and believe you have a plan for it is only confirmed by the sellers narrative.

    Also, it may draw in buyers who can't envision a plan for your domain. If done right, I believe you'll most definitely sell more domains.
     
  4. stub

    stub Top Member PRO VIP ★★★★★★★★★★

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    I think, you have a potential risk with including a plan which doesn't match the potential buyers plan for the domain. It might give them pause to rethink their strategy about buying that domain for their future use. I would say 99% (of the top of my head) of potential purchasers already have their plans (or at least their ideas) in place when considering to buy a domain. If your plan doesn't gel with their plan. It will give them pause to reconsider their purchase.

    Of course I have no idea how you select a plan for any one potential client for any particular domain. I think you would need to know quite a bit about the potential buyer before you make a proposal. Not to make the proposed plan, cold.

    If I think about myself. I just agreed to buy a domain from another domainer here on NP's. I have a particular end-user use for this domain. Nothing the seller says is going to convince me otherwise. In fact, if he made any proposals, it would more than likely, at best, fall on deaf ears, at worst it could potentially make me realize this could be not the best domain for my planned use for this domain.

    Sometimes it's better to leave the future of the domain, in the eyes of the potential buyer. It might improve your price :)

    I'm not trying to belittle your plan. It might just work. But it is fraught with pitfalls. Such as. If it's such a great plan. Why not implement it yourself?
     
  5. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO VIP ★★★★★★★★★★

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    Spot on Stu, this was discussed many years ago and I do understand the hypothesis. But for it to work you are selling someone who doesn't want a domain name a domain name.

    It only works for outbound, most domainers rightly or wrongly don't do outbound, they prefer the buyer come to them to have an upper hand in the pricing/negotiation.

    So if you come up with a domain name, and write the mini business plan, you have to be calling someone and selling them.

    Who are you selling? If it's a business they should already have a business plan.

    Now many people who knew a little web design and a domain name did this on Ebay, years ago. Here is the name, here is what you can do with this name and the template website.
     
  6. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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  7. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    Stu..."most people" don't even know what "aftermarket" is. Just like they've NEVER heard of Uniregistry, Undeveloped, Sedo, Flippa and the list goes on. I'm obviously not targeting the same people you are, and there in lies the major difference in our strategy. Thanks for your input.
     
  8. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    Fully agree with @stub and @equity78.

    People who approach you are ready to buy. Don't make unnecessary sales pitches to someone who already wants what you're offering.

    On the other hand, if you're the one approaching a potential customer, dropping a business plan on them will feel like too hard of a sell. You'll scare them off.

    I've done outbound for a couple years now and made a reasonable number of sales that way. I have never (not once) been asked for more details about a domain name. Business owners know their business. If they see value in your name (and in domains in general) then they will be interested. If they don't see value in domains, or don't understand the potential, you're not going to convince them with an unsolicited email or phone call.
     
  9. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    I totally disagree with you guys...I just met with a local realtor who just so happens to own a couple hundred domains mostly involving the real estate, mortgage and home building industries. When I return from NamesCon in Vegas, he and I plan on working together to sell domains to the real estate and financial services industry where we have a combined 80 years of experience in business and real estate. Regardless, whether industry "end users" find us, or we find them is really moot. If the potential buyer is aware that we can help them in areas besides just selling them a name, it can't help but add value:xf.wink: Sorry you don't see it:xf.frown:
     
    Last edited: Jan 16, 2019
  10. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    Rich, no one is questioning your past business experience, but now you're changing the discussion to something else entirely.

    You started this thread asking if you could increase sales by providing a business plan with each name. The few of us who replied don't think it would work.

    Now you're saying that offering a range of services to a business could motivate them to become your customer. And yes, I agree with that assertion. But you're no longer talking purely about selling a domain name. You're talking about running a business and selling your services, of which providing domain names is a small aspect.

    Your threads often go in this direction... we start talking about selling domain names, and you change the discussion at some point to building businesses or selling services. Let's try to keep it focused on what you asked in the first place.
     
    Last edited: Jan 16, 2019
  11. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO VIP ★★★★★★★★★★

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    Exactly the reply was a complete pivot from the initial question. Because if I am in real estate I don't need your mini business plan on what to do with OrangeCountyRealEstate.com. I know what to do with it, I am a realtor in Orange County. The interaction would center solely on price.
     
  12. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    In all due respect, it's obvious that you don't understand the concept of "adding value" to a domain. If creating a logo or an attractive landing page doesn't add value, than why is it done? I didn't say anything "specifically" about building businesses or selling services around a domain name, but rather sharing with a potential buyer information they may not be aware of? I don't know about you guys, but I learn from anyone and everyone I meet. Assuming a potential buyer already knows everything they need to know about a purchase is flawed thinking. I know if I were to buy a domain from someone for a business I was starting, I would like to know if the seller had some practical business experience they'd be willing to share. Is that concept too complicated to understand:xf.rolleyes:
     
    Last edited: Jan 16, 2019
  13. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    Why would you, as a business owner, be looking to someone for business advice simply because they own a domain name you want? That would be like asking someone how to make the NFL because they own a football.

    And you weren't talking about "sharing information" in your last post. You were talking about "helping business owners in other areas." You're talking in circles.
     
    Last edited: Jan 17, 2019
  14. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    I prefer to invest in domains that have natural demand.

    I guess when you have domains that people are not interested in, you need a lot of creativity in order to unload them.

    Brad
     
    Last edited: Jan 17, 2019
  15. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    First off...you're assuming that I'm talking to a "business owner" who KNOWS IT ALL! That's hardly the case Joe...most people aren't know it all's. You can challenge my business acumen until the cows come home, but my experience far exceeds that of a "football":xf.rolleyes:

    There isn't much I can't do if I put my mind to it, and your negative can't do attitude only encourages me more. Are you going to Vegas Joe? It's my can do attitude that will be on display:xf.wink:
     
  16. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    Except actually make domain sales...

    All your posts head the same direction, it doesn't mater how they start. They always end up with how great you are and know better than everyone else; people who actually have success in this field.

    It is impossible to have a productive discussion.

    Brad
     
  17. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    As a business owner yourself, would you have bought more paper from the paper salesman if he tried to give you financial tips? Would you have paid extra for your phone service if the technician also provided you with marketing advice? Domain buyers don't want business plans. They have the plan. They just want domains.

    You're confusing the KISS principal with a negative attitude. I'm not saying you can't sell domain names. All I'm saying is to stop over-complicating the process.

    Buy good names

    Find the right buyers

    Sell the names

    That's it. If you have the right names, and find the right buyers, you don't need the extra gimmicks. The buyers will want the names without the sales pitch.
     
  18. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    No Vegas for me, unfortunately. I'd love to go to the conference one year, but I'd like to make a few more sales first. ;)
     
  19. xynames

    xynames XYNames.com PRO VIP

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    For some domains it might not be a bad idea to decorate your landing page for it with some ideas for its use. You know, saying ____.com is the perfect name for any _____ , _____ or _____ business. But you gotta be careful to be broad minded with your pitch because otherwise your promotions might backfire and actually dissuade a buyer.

    For EXample if you go all out and claim that a certain domain is the perfect name for an ice cream business and the potential buyer was thinking of using the name for a hedge fund, your promotion might give him great pause. “Hmm, so ICE CREAM is what comes to mind when you think of this domain? Maybe it’s not such a good name for a serious finance venture.”

    By the same token even a one page business plan implies a focus on a specific direction - a specific use - for the domain. It goes even beyond saying that this domain is great for the ice cream business it gets into an analysis of exactly why it’s good for that and how best to put that ice cream business into action.

    In short, I’d be against any marketing or promotion for a content-less domain that ends up hemming it in towards any single direction or focus. In the end the name stands on its own.
     
  20. ThatNameGuy

    ThatNameGuy Restricted (33% DM) Gold Account

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    What do you know xynames..i agree with you, and as a business guy I've always agreed with the KISS principal. At the same time I also know there's ALWAYS a better way. For instance, i'm sure you're aware that 90% of all domains already registered aren't in use by anyone:xf.wink: Thus Verisign was right when they accused you and me of being "hoarders/scalpers". I didn't take offense to Verisigns analysis, but rather I've reached out to them to learn more about what makes this industry so much different than other industries?

    I mentioned in this thread that I'd met with a very successful local realtor who just so happens to own a couple hundred domains. We spoke about how AI is playing a bigger and bigger roll in the real estate industry which led us to talk about how AI might improve domain sales. Common sense and real intelligence tells me there is something amiss in the domain industry, and I intend to exploit it all the way to the bank:xf.smile:
     
  21. Proxy Diaz

    Proxy Diaz Established Member

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    I love what you said! I was recently thinking the same thing. Ignore the negative criticism...
     

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