Advice for first-time buyer (End-user)

[noobbuyer]

hello all,

I realize this forum caters to the domainer crowd, however I'm hoping you can offer some advice for a first time buyer on any solutions for my current situation. I am an end-user, meaning I plan to develop the site.

- Domain I want was registered and parked.
- Registrant had whois guard in place, so I emailed them inquiring if the domain was available for sale. I provided no info in my email to them.
- Received no response, however after checking a week later, I see the domain is listed on Sedo.
- The seller is a highly active seller on Sedo out of HK.
- Made a Sedo account so I could send them a bid. However, Sedo would not accept my bid because the seller has listed a reserve price in the mid 4 digits.

- I'm a solo developer / first time web site builder, so my resources are limited.
- My max budget is realistically in the high 3 figures, not mid 4.
- The domain is good but not great. It's a mash up that has no natural use case. It works well for my plans, but there's no indication it should be in high demand because my business area is not particularly active. I'm probably the only buyer north of $100.
- Someone attempted to develop it before and failed. (Expired TMs)
- The domain registration expires next year.
- To clarify: the domain has no natural traffic, the only value is from what I would like to build there.

Given the above, any advice on how I can get through to the seller? Any ideas for the little guy when the name of this game seems to be lock up property and hope a deep-pocketed whale stumbles by?

 

[urlurl]

pay the price or move onto another name

 

[FPForum]

If your price is way different from his (he's asking $4000 and you're offering $400) then you guys probably don't need to talk as you're way off in price. If the name is really that bad he will eventually get tired of paying renewal fees on it and might just let it drop. At the same time, if he's a big seller on Sedo then he could have a large portfolio and might not want to waste time on 3 figure sales.

 

[myleene]

I've never done it myself, so others might have better feedback on this.

Sedo offers brokerage services for buyers. If you really want this domain name and it seems to be locked at Sedo I think it could be your best option. It's unsure if you'll be accepted though.

See this: https://sedo.com/brokerage/acquisition.php

 

[forge]

urlurl has it right. You will never get the name at the price you want. Following the letters HK, that's pretty much guaranteed.

Don't know about Sedo brokerage, but you could try GoDaddy Domain Buy Service. You'd only risk $69 or something like that.

 

[alien51]

Since you said obtaining the domain is not fatal to your business, then just let him know your email address where you can be contacted, and let him know the price you are willing to pay. Then move on with your life.

If he attempts to contact you after a very long period of time, that means he has shifted to desperation mode and now wants to salvage the deal. In such case, tell him you have moved on with your life but you're still willing to buy the domain from him. But offer to buy it at a lower price than your previous offer. Tell him you have used your money during that waiting period, but you may want to pay him with whatever money you have left to put away his misery of getting rid of the domain beyond reg fee.

 

[equity78]

Don't fall into that psychological trap of "I am the only user for this domain" Its a big world more than likely you are not, and like you mentioned someone previously tried. So that already makes 3 people on the planet having or had an interest in the domain.

More than likely he set the reserve for offers at four figures because he does not want low balls, he did what a lot of people who despise $60 should do, save time and set the min for an offer so its worth the time of negotiating.

Take someone like Michael Berkens publisher of thedomains.com, he owns 75,000 domains and he never entertains anything below $2,500 no matter what the perceived quality.

So you either sit and think this domain will demonstrably help my project and raise the money, or you go for an alternative domain.

There are always alternatives.

 

[MadAboutDomains]

Don't fall into that psychological trap of "I am the only user for this domain" Its a big world more than likely you are not, and like you mentioned someone previously tried. So that already makes 3 people on the planet having or had an interest in the domain.

Never a truer sentence. :bingo:

The saving grace is that there is probably another domain out there that would fit your project.

I don't know which domain extension you're aiming for, but my most successful website is on the .NET extension - so it's not all about the extension.

Sure, you want what you perceive to be the most fitting domain for your project. A couple of G's isn't a lot to pay for a domain, especially if you intend to make it a big project. If you're not able to pay for the domain at the price they want to sell it for then you're best off leaving it alone cause you'll only end up in a fight that you can't win.

Isn't it funny how we become emotionally attached to things that we never even had .

 

[Kate]

I don't think retaining the services of a broker is worth it. Sedo brokerage service requires that the starting bid be $500 at least and you must be prepared to leave room for negotiation.

It's very possible that you are the only end user for that domain. Many domainers are waiting for a loaded end user that will never come. The truth is, the vast majority of registered domains have no buyers at all and will not sell.

In practice, the lifespan of a domain is quite short. Many are abandoned after a few years.
I have recovered plenty of domains just by waiting a few years. That's it, being patient.

My advice is to make your best offer, take it or leave it. If the owner won't budge find another domain, and keep an eye on the coveted domain. It's not lost forever.
Or come back when your business venture is thriving and you can afford to pay the asking price

 

[alien51]

I don't think retaining the services of a broker is worth it. Sedo brokerage service requires that the starting bid be $500 at least and you must be prepared to leave room for negotiation.

A cheapo, and a broker, do not normally go together harmoniously. They cannot even occupy the same room together.

It's very possible that you are the only end user for that domain. Many domainers are waiting for a loaded end user that will never come. The truth is, the vast majority of registered domains have no buyers at all and will not sell.

Harsh facts of domaining life.

In practice, the lifespan of a domain is quite short. Many are abandoned after a few years.
I have recovered plenty of domains just by waiting a few years.

I even bought a domain for reg fee that has 5 drops on its whois record. I inspected its Wayback rap sheet and saw a rich history of "For Sale" landing pages stretching for almost 10 years with different owners. I have now developed that domain into a high-traffic e-commerce site as an end-user.

Sometimes it's difficult to snatch the domain that "appears brandable", because many domainers are attempting to backorder it so it never drops. But normally, domainers will start avoiding picking up dropped domains that have too many drops in its whois record. That's when you come in, if you are an end-user.

Or come back when your business venture is thriving and you can afford to pay the asking price

..... Or you can come back later as a young college chick living off your mommy's allowance. Just be smooth with your script. There's a thread here at Namepros somewhere which teaches how to pull it off and get a killer bargain.

 

[Cyphix]

Whilst in your opinion the domain may not be worth what he is asking, I think you're going to have to bite the bullet and raise your budget on the name if you want it that bad; if not, then you will probably have to look for an alternative name.

I don't know the name so I can't say if what he is asking is fair, but if it's THE name and you really mjust have it, sometimes you have to pay more than you would like to.

 

[noobbuyer]

Thanks for the input guys. I think I'll go back to the drawing board to brainstorm some other naming options. If I can't think of anything else maybe I'll come back to it.

 

[SearchEngineZ]

Go with a different TLD, same name.

Country code (even .us if that is where you are)
.net if it is an internet service, or even if it just sounds like a good fit

Or perhaps putting "the" in front of it?

 

[noobbuyer]

Here's another idea/question. Do you think if I offered a lease-to-buy deal they might bite? eg. I'll pay you $xxx in year 1, option to pay $x,xxx in year 2, option to buy outright for $xx,xxx in year 3.

That would be a great option for me while preserving their potential to get a large pay day - but is it too much hassle for the seller? I've determined it's a large domain portfolio.

 

[urlurl]

I would, especially if you are going to give me xx,xxx in year 3 - if you have that kind of money why not just buy it.

 

[noobbuyer]

Well I don't have that kind of money now. But if I'm still running this business 3 years in, that amount should be no problem.

 

[Cyphix]

Well I don't have that kind of money now. But if I'm still running this business 3 years in, that amount should be no problem.

Well you better be damn sure you will have that amount in year 3, otherwise you will be agreeing to a very large amount which you will be contractually required to pay.

However doing it this way will likely require you to engage a lawyer which is more $$$ to get a solid contract drawn up.......