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Domain Selling Psychology - An inside look!

Located in FAQ, Rules, and Help Guides started by Eric Lyon, Jan 10, 2013.

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  1. (Please note that the below is merely my personal opinions based on my involvement in the sales industry. Everyone's experience is a little different and results may vary. Please conduct your own research and testing to find what works best for you.)

    When selling domains, whether it be to resellers or to end users we have to keep in mind that there are deeper psychological forces at work involving the neuro network of the human brain. While these same psychological attributes can be applied to just about any sales related atmosphere, today we are going to talk about the application of them in the domain industry.

    The more we can understand the psychological buying triggers of human beings, the better equipped we are to increase our conversion rates.

    So, Lets get started......

    A.) Buyers emotional trigger: Buyers commonly decide based on feelings, needs, or emotions, and not always through a logical thought process. To persuade a purchase you should first ask yourself what will get the potential buyer emotional about the domain. (Emotional triggers = Impulse buying)

    B.) Researched Facts after emotional intrigue: Once you get an emotional response it's common for buyers to second guess them self if the deal isn't closed immediately (early buyers remorse). When this happens, even though the buyer is overwhelmed with emotions to buy still, they may start to research a little to find at least a shred of evidence to support a buying decision. To help curb this 2nd guessing and research, be sure to provide some researched facts up front during your presentation of the domain so that it helps maintain the buyers motivation to invest.

    C.) A Buyers Ego: It's habit for business minded buyers and investors to harbor some form of self righteous ego. So it's very important that when you ask a buyer to close a deal and make that domain purchase that you also answer the most important ego questions that pop in their head (E.G. "What's in it for me?" or "How can I justify my personal worth buying this domain?").

    D.) Buyers like value: Remember, true value can't be summarized by a number / price. True domain value is instantly calculated by a buyer (end users) based on what they are used to paying for things, how bad the buyer wants it, and how the buyer feels about your overall presentation compared to other presentations they see every day. The more value you can emulate through your presentation to drown out the price tag (making it irrelevant), the better amount you'll be able to get for your domain when closing the deal.

    E.) Buyers visual stimulation: The human brains neuro network is not by any means similar to a computer. Neuroscience has proven that the brains primary function is to deal with interactive social events. Just like back in high school, you need to make sure you use visual stimulants and references to walk buyers through the value process just like the old math questions that used apples, trains, and animals to make math equations easier to deal with. You want the buyer to understand the value even if they aren't a mathematician by drawing that mental picture for them in the presentation process.

    F.) Self defensive buyers: Buyers have a natural and instant line of defense when they feel they are being sold or pressured into something. Like when we go into an appliance store and a salesman immediately approaches us asking if they can help. Our first instinct is to put that wall up and reply with "Just Looking". Be sure not to come off to desperate and that your presentation shows a clear need for the domain. The more comfortable the buyer is, the more apt they are to buy from you.

    G.) Buyers truly love to buy: It's said a lot that people fear being sold. Well, that's partly true when it comes to being cheated or tricked, however on the other end the spectrum buyers genuinely love to discover new and innovative things. With this in mind, lose the "Selling" mentality and adopt a "Helping" mentality. Treat people fairly and show a genuine effort to actually be helping them rather than trying to sell them something. It makes a big difference.

    H.) Suspicious buyers: With all the scams that have happened over the years online people have become naturally skeptical of just about everything. Buyers want to avoid risks more than ever before. Since you aren't a mind reader and unable to know who's paranoid and who isn't, it’s best to assume everyone is and back up all your claims with evidence (E.G. screenshots of analytical data, links to previous verified sales similar to your domain, etc.).

    I.) People always need something: Whether it be Love, Wealth, Glory, Comfort, or Safety, people are always looking for something. Like everyone else in the world, buyers tend to always be unsatisfied with something and looking for a better solution. So be sure your sales presentation addresses some of the most common needs and provides a definitive solution to their problem.

    J.) Convenience buying: If a buyer found an almost exact domain to yours locally or at an already trusted location, that's more than likely where they will buy the domain they feel fits their needs. It's important to make a potential buyer feel like you are the one offering that exclusive convenience to them. If a buyer feels like they are getting an exclusive deal they can't find locally or at a closer location, they are more than likely to stop looking and just do business with you.

    K.) Buyers 5 senses: That's right, it's no big secret that buyers in today's world like to see, touch, smell, hear, taste. Many buyers avoid buying online because of those 5 senses and it creates an instant obstacle for sellers like yourself. Think about when you go to a store to shop for things yourself. What do you look for? How do you decide which model is the right one for you? Are there certain features that make it better? etc... Now think of ways to provide some interaction or at least visual aid into your presentation so online buyers are less likely to back out due to the 5 senses and feel somehow psychologically stimulated in those areas.

    L.) Buyers are followers: Many buyers are really just imitating what they saw someone else do. We are always looking upon others for guidance, especially in areas we aren't certain of. As we both know, many buyers are truly uncertain of the domain industry and how it works. A buyer tends to ask them self "What do others do in this situation?" or "How do others feel about this domain?" and then they act accordingly. This is why having good feedback from previous buyers (e.g. itrader, testimonials, reputation score, reviews, etc.) is essential in many cases to help close your deal. It provides that second opinion instantly making a buyer feel a little bit more secure in their decision.

    Eric Lyon
     
    Last edited: Jan 10, 2013
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Coral Cove

    Coral Cove Know your brand like the back of your hand. PRO

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    Excellent post! Thank you!
     
  3. Coral Cove

    Coral Cove Know your brand like the back of your hand. PRO

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    It would be awesome if you gave us a couple of example emails. Like one for a response to someone offering a very low price for a domain and how to properly counteroffer.
     
  4. sonu

    sonu Established Member

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    This is a good article. Thanks for writing.
     
  5. Akhil K Aniyan

    Akhil K Aniyan Established Member

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    Outstanding article. Really very helpful.
     
  6. Mobiller

    Mobiller Established Member

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    Thank you for this Fantastic Post and it is perfect for any sale, online or off line, digital or brick & mortar sale. Thanks
     
  7. FPForum

    FPForum Top Member VIP ★★★★★★★★★★

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    Great post Eric! Valuable information here and definitely something every domainer should read before starting to sell.
     
  8. tom8

    tom8 Account Closed

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  9. NameBot

    NameBot namebot.com

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    Great inputs. Very informative and relevant. Thank you Eric!
     
  10. jideofor

    jideofor Top Member VIP ★★★★★★★★★★

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    Thanks Eric for taking your time out to write this. It means a lot. I bet I will have to read this everyday until it really sink in.

    I would need your professional advice as I have 3 pending sales...

    Buyer 1: This dude contacted me via whois and inquired if I would be willing to sell cos he feels it would make a great brand--it's a coined word actually.

    My Reply: I told him that though I had wanted to use the domain name for business(which is true) but I would sell if his offer is very good. Then asked him how much he would pay to own the domain.

    No news as it's now 1 week 1day.

    Buyer 2: I emailed and he asked me how much.

    My reply was that I would take x,xxx lower than 4k actually. No news yet.

    Buyer 3: I emailed him for 2 domains and he asked how much to which I gave a price for each domain name almost around same price I gave buyer 2 above.

    My question is why haven't they replied? Was the price not what they want? If yes, why didn't they state what they would pay if they could ask How much in order to start a negotiation? Or they just aren't interested?

    All these happened within a week plus.

    I would expect at least one of them to result in a sale...

    Kindly share your experience.

    Thanks.
     
  11. Without knowing all the research of who the targeted buyers were, what the domains where, what the asking prices were, and all other small details that may have been left out there's really no way for me to tell you a definitive answer as to why they never responded. It could be a number of things. Price was to high, domain wasn't targeted enough to their business, domain was to long, your sales pitch was to strong and you scared them off, your sales pitch was to weak and they didn't feel any urgency, they didn't really have the money they said they had, they didn't trust your email (the way it was worded, the address itself, or typos), etc., etc.,

    I don't really give any personal appraisals or coaching. My days stay pretty hectic with multi-tasking and doesn't leave much free time. I do wish you the best in your situation though and I'm sure that a skilled domainer with more time on there hands would be more than happy to assist you further. ;)
     
  12. jideofor

    jideofor Top Member VIP ★★★★★★★★★★

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    Lol thanks Eric. I really don't know what goes on from the other end.
     
    Last edited: May 24, 2014
  13. bashishtha

    bashishtha Established Member

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    Lovely post and very very inspirational for me... Thanks again Eric... :)
     
  14. Domainstore

    Domainstore Top Member VIP ★★★★★★★★★★

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    Very intersting article indeed : thanks also to eric from me ! :wave:
     
  15. Templr

    Templr Top Member VIP

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    "...based on what they are used to paying for things" This is a true psychology. Great post.
     
  16. Kuffy

    Kuffy Name Stag VIP

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    I'm coming to the conclusion that I sell my names too cheaply, especially through Sedo. My last sale was as the result of an approach by a domain agent, and the transaction was finalised via Escrow. The buyer paid all the fees. I suspect I sold that name too cheaply as well, although I got 10 times the initial offer price.

    At the moment I'm thinking that it's better to ask for higher prices, and use 3rd parties to secure the transfer. This will probably lose me some sales, but as I think that .com prices will increase over the next few years, I'm not too bothered if it takes a while to sell a name.
     
  17. rhakim

    rhakim Established Member

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  18. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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    "Buyers 5 senses: That's right, it's no big secret that buyers in today's world like to see, touch, smell, hear, taste. Many buyers avoid buying online because of those 5 senses and it creates an instant obstacle for sellers like yourself"

    Might explain why I been seeing a lot of domains for sale with logos included!

    Well written article
     
  19. deebong

    deebong Galoxy.com VIP ★★★★★★★★★★

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    Wonderful post Eric! Thank you so much!
     
  20. BrandKart

    BrandKart Pick the right name with us ! VIP

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    most buyers say i will buy it but never reply back, how do we emotionally trigger them to buy, how would you reply a buyer who says i will buy it ?
     
  21. That's a great question. Everyone uses a slightly different technique, however, I've found that if you research the potential buyer prior to approaching them and make a connection on similar interests, it helps set the foundation for an easier negotiation and establishes a common bond that may translate to artificial trust. Trust is the key factor in a negotiation. If they don't trust you or fully comprehend the benefits of the domain, there's a 95% chance they won't reply again.

    That's just my opinion, though.
     
  22. Lox

    Lox ----- Gold Account VIP

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    This is called "Love" or "Cover" letter.
     
  23. BrandKart

    BrandKart Pick the right name with us ! VIP

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    Do you think asking them more questions initially like "do you have an GoDaddy account ? ""Can we use escrow?" would build that connection and keep the communication going then straight away sending him a invoice or asking him can we send the invoice.
     
  24. No! A connection of trust can not be established through a call-to-action. A call-to-action is used after trust is established. To establish trust first you must research the potential buyer; business model, target audience, their hobbies, favorite sports/teams, favorite food, etc. There are many other ways to connect with a buyer's commonalities, however, that should at least give you an idea of where to start.

    I hope that helps,
     

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