Epik

End user waiting to decide on purchase

Labeled as advice in General Domain Discussion started by Crypto King, Jan 10, 2019.

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  1. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    Hey Everybody!

    I have recently received some interest from a potential end user in a premium domain name that I own. The end user looks to be a small-medium sized business and after very limited outbound marketing (have had no time do any and not sure how to, but will learn soon) they asked me for a price.

    Their opening offer was pitiful at a low XXXX and I sent an emailing explaining that this was far too low and that domains of this calibre regularly sell for 6 figures and provided some details on recent sales as well as how the domain will help their company.

    I received no reply and followed up again to see if they wanted to make an offer but they again gave a low ball offer.

    The third time, I simply said that the absolute lowest we are prepared to take is $XX,XXX (very high 5 figures). The CEO is now saying that he wants to think about it and also asked me how transfer of ownership of the domain name would work. This sounds like he is becoming more interested at this price point.

    My response was that there are 2 options, one would be for him to create an account at where the domain is registered currently and that I can simply push the domain into his account and he will have full ownership of the domain. The second option would be for me to generate an AUTH code and he can initiate a transfer at Godaddy (where is currently domain is) using this code and the domain will be transferred into his Godaddy account. I provided a bit more of a detailed explanation around the both.

    I then mentioned we should use Escrow.com to facilitate the process of payment and domain transfer to protect both buyer and seller and explained that I only get paid once he gets the domain so it is safer for both parties.

    Now my questions are:

    1) Did I do anything wrong with the above - I have to admit I am an amateur but I do know the domain is very valuable and I didn't get it cheap to start with. However, this would see a nice profit if sold at this price.

    2) How long should I give him to think before I contact him again and what should I say? He sent his last email on Monday (7th Jan). I don't want to be too pushy but also I don't want to leave it too long that he loses interest.

    3) If he comes back with an inadequate offer, shall I either:
    a) stay firm with the price
    b) lower the price (will this make him think he can keep pushing lower?)

    thanks!
     
    Last edited: Jan 10, 2019
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  2. Riz M.

    Riz M. EmpireNames.com Gold Account

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    I would not follow buyer back... if you know your name is premium then firm at your price and start new outbounding ... i know the name you are referring and trust me if i owned that name i would never sell under 6 figs... this name have great potential you just need good holding on the name no matter how many years... just wait for right buyer... and if any buyer is interested let them think and you just continue doing marketing further as soon you will be doing more marketing trust me... one of them will come and will take the name... in domaing just do shoutout and move forward and set lander to uni as they chase customer for you professionally please be strong in domaining ...and let offers comes in and relax...
     
  3. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    Thanks Riz, I like your strong attitude and I do agree that the domain is something special. I will take your advice onboard :)
     
    Last edited: Jan 10, 2019
  4. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    @Crypto King - what you are doing is great, ask questions and always keep an open mind.

    Engage the client if you don't hear from him, the last thing you want to do is let too much time go buy and have the deal grow cold. You sell more domains with open dialogue than you do with silence. Basically all sales work like this and once you establish a rapport with the end client negotiations become easier.

    It's not always about price, one can stand firm and still engage the client and that is my advice.
    Engage, and don't lose the sale with a prolonged silence. I know this goes against some peoples advice but I believe there are always other options out there and if the client gets defensive you can lose the sale. The easiest way to make a client defensive is if they believe you are ignoring them.

    Good luck (y)
     
  5. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    Thanks Maple! I'm thinking of contacting him back but staying firm on the price as I don't want to drop any lower and seems others also value the domain highly. How long do you think I should wait before contacting him and what should I say?
     
  6. BaileyUK

    BaileyUK Established Member

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    That's two nice posts above. We are clearly dealing with a high value domain with a buyer that is not overly familiar with the domain market. I agree if you've got more supporting data/info on the value of your domain - keep the buyer informed of any aspects that they might not be familiar with.

    That's a nice comprehensive sales list at Domain Journal this week (covers three weeks) Why not just suggest the potential buyer has a look at 'What is' a very relevant, up-to-date, market analysis. Keep the buyer in his comfort zone in regards to your professionalism
     
    Last edited: Jan 10, 2019
  7. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    Very good idea! DNJournal has some amazing sales and guess what, DXL.com sold just yesterday for over 1.15 Million Dollars!
     
  8. BaileyUK

    BaileyUK Established Member

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    Indeed, probably good timing. When you quote data from a specific period, It can look as if your being selective. Data that is in effect not even 24 hours old is as relevant as you can get.

    I would use some choice simple words to introduce your potential buyer to the 'Credibility' etc of DNJournal, seeing it's unlikely that they are familiar with the weekly reports.

    And again your just keeping the buyer updated on aspect of the market that he's probably not familiar with
     
  9. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    Personally I never wait longer than 3 days because there is a fine line between pestering and informing a client. I am currently dealing with afternic on a bigger purchase and they have assigned a pretty knowledgeable broker to me. I see he is also waiting about 3 days between contact. Just long enough to let me think but not long enough for me to think I am not being engaged.
     
  10. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    out-spamming, won't get you the amount you want for it

    if you think it's worth 6 figs, then anybody you spam, will assumed you are desperate to sell
    therefore, they will always try to get lowest price

    only when you respond to unsolicited inquiries, will you have the leverage to maximize profit potential.

    also, constantly contacting this perspective, will give them increased power over negotiation.

    at some point, you have to have the patience and confidence, that the name is worth it and that there are others who could utilize the domain.

    if it's a one fit name for limited users, then you're pretty much at their mercy.

    imo...
     
  11. wizard

    wizard Established Member

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    Just ignore him until they pay the price and move on no point talking about it if serious they will come back if not then no sale...
     
  12. xynames

    xynames XYNames.com PRO VIP

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    If buyer really wants it he will come back to you. For example on a domain of mine I received a low offer I countered at 21x higher than the low offer.

    Weeks later I got an email saying that they’d offered a certain amount (which was just about 9% below my counter) and would I accept it.

    I answered honestly that I had somehow missed their email, accepted the offer, we went into escrow with buyer paying all fees and escrow closed just fine.

    Point being that if a buyer wants a domain he will chase you to close the deal. I should have responded to that email but whether it ended up in my spam or I missed it in my inbox or maybe buyer forgot to click Send I didn’t see it.


    *Over all I’ve been a little more giving with my acceptances lately. If the offer is within about 10% of my full asking price I don’t counter I just accept it. Or if their second offer after my counter is within 20% of my asking price I sometimes lately go for that too. No hard and fast formula just saying that lately I don’t push for every penny of my asking price.
     
  13. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    I contacted him again (has been 3 days - @MapleDots ) and mentioned that we are receiving increased interest (which is true) and have raised the price of the domain to new inquiries as sales are very strong at the moment for domains of this nature (quoted the $1.15M sale of DXL.com and provided the link of to DNJournal relevant sales, mentioned it is a reputable sales tracking site etc - @BaileyUK) and also mentioned that I would still consider selling to him for the quoted price if he wants to move forward (pretty much making clear this is the price for him but for new inquiries it is higher so I would not decrease @Riz M. )

    He responded after 5 mins and thanked me for the update and said he wants to think about it. I think now I will also take onboard @xynames and @biggie and @wizard advice and stop contacting him for a week or so and wait so he can think and respond back if interested)

    I think I took on-board everybody's advice :)
     
    Last edited: Jan 10, 2019
  14. dande

    dande Established Member

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    Anyone advising you to keep contacting this buyer isn't advising you well. The more you contact them, the less interested they'll get, and the less value your domain would have in their eyes.

    If your domain is worth the value as the previous posters has confirmed, then hold and wait. Never mind the perceived ignorant questioning from the CEO, buyers sometimes feign ignorance just to get a good deal.

    DO NOT CHEAPEN YOUR DOMAIN BY CONTINUALLY PESTERING THIS BUYER
     
  15. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    Informing the client as to what is happening with the domain is not a bad thing. The OP is in a unique situation if he has several inquiries on the same domain. Usually that is not the case and staying in contact for a week or so after an inquiry has been a great sales strategy for me.

    Now I don't have multiple clients after one domain but again if you inform the client of that before you end contact then that could also create as sense of urgency. This way if he does not react then the op is well within his rights to say, "You waited too long, I have other inquiries so I cannot guarantee the quoted price at this time".

    The op is very fortunate to have a domain this much in demand, other domains take more work to sell and just sitting and waiting is not always the best option. I find that I have a higher sales ratio by actively engaging the client in a pleasant manner.
     
  16. Asfas1000

    Asfas1000 Active Member VIP

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    How is that spamming ? OP is offering a LLL.com for sale, it's the perfect domain for the buyer.
     
  17. xynames

    xynames XYNames.com PRO VIP

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    This was what the OP said

    <<I have recently received some interest from a potential end user in a premium domain name that I own.>>

    a means one.

    Are we reading from the same thread? What did I miss?

    He did mention in passing that “seems others also value the domain highly” but that’s not referring to specific offers is it?

    My advice was based on a single inquirer. But - If, as you imply, people are falling over their feet to send him offers, that would be even more reason to not pester the potential buyer, no?
     
    Last edited: Jan 10, 2019
  18. Crypto King

    Crypto King RFQ.com . UY.net . Peculium.com VIP

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    I do have other interested parties and inquiries do come in but this is the most active lead. I think it is good to contact the buyer again as Maple suggested, but now I have provided him with enough information he should have everything he needs to make his decision and I will take on the advice of not pestering the buyer. Sounds like there is a fine balance.


    Appreciate all of the input!
     
  19. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    He did mention further down that new inquiries would be quoted a higher price. I mistook that to mean he had other inquiries as well. My bad....
     
  20. dande

    dande Established Member

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    OP Clearly said he has got more than one inquiries for the domain. You also mentioned the domain is a 3 letter jewel. So, we are commenting base on these facts. Contacting this buyer every 3 days is not a good sales strategy.
     
  21. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    doesn't matter, whether it's perfect or not.

    unsolicited email, is still considered spam.

    still, there is a question for @Crypto King

    how long have you owned this domain in question?
    because from your comments, i gather you don't have much experience with negotiating.


    imo...
     
    Last edited: Jan 10, 2019
  22. Asfas1000

    Asfas1000 Active Member VIP

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    So if someone emails you an offer to buy your domain, it is spam, because it is unsolicited.
     
  23. wwwweb

    wwwweb Top Member VIP

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    When brokers, or sellers keep hitting me back, I know one thing, desperation.

    If you say what you are selling is as valuable as you say, you need not hail on me with emails asking me if I have an offer, or have made up my mind.

    At this point they know where to find you, and you really can't add more to their bottomline with more emails, and contact, after a while they will start to double guess why they actually want it.

    A 5 figure offer for a medium sized business is not chicken scratch, these people do not know the in's, and out's of each letter, or specific domains as you would on a daily basis. That could be a considerable one time marketing cost from some random guy emailing them that could create some skepticism.

    I would back off, as they know where to find you if they want it.
     
  24. eurorealtor

    eurorealtor okre.com VIP

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    Agree, especially with LLL .com. With outbound you are loosing the power of leverage.
     
  25. wwwweb

    wwwweb Top Member VIP

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    Pretty much, there are laws in North America that outline how these emails need to be sent.

    CANSPAM ACT
     

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