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How do you respond to the "How much" question?

Labeled as discuss in Domain Buying and Selling Discussion started by thevictor, Sep 25, 2019.

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  1. thevictor

    thevictor Established Member

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    I know there are several threads on here around outbound marketing, but I haven't seen anything specific around different strategies on responding to the "how much" question.

    Below is what I have read regarding this from some NP memebers:
    • Respond with a really high figure and work your way down from there.
    • Ask for offers in x figures
    • Respond with a realistic number you are willing to accept and include several reasons as to how you came to that number.
    • Don't respond with a number and instead ask to discuss over the phone.

    This about sums up almost everything I have read from the different threads. I am curious to hear from other members as to how they respond to the "how much" question? What has worked and what hasn't?
     
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  2. MrAcidic

    MrAcidic Account Auto-Closed Gold Account

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    Ask for more than you would accept to leave room for negotiation.

    Acceptable price would depend on quality of the name, if you really need the money and if you think there are other potential buyers out there..
     
  3. hawkeye

    hawkeye Top Member PRO VIP ★★★★★★★★★★

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    If you, or anyone, are going to do outbound sale prospecting, you should have a ballpark expectation of what you think the domain is worth and what your expectations would be for it. So if you are presented with the proverbial 'How Much' question, you can reply accordingly such as - low/high $xxxx; offers above $____; or even better - an actual price! Having to 'wonder' what to reply with for a price, or to ask them to 'reply with your best offer' shows you are just spamming people hoping someone will reply and offer something 'you' are/would-be happy with.
     
  4. Lord Antares

    Lord Antares Top Member VIP

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    Yeah, I agree that if you're the one cold contacting someone, the onus is on you to present the price. I'd say a realistic price, but more than you'd accept to leave room for negotiation, as someone said.

    If you're pitching handregs or closeouts, I'd recommend $xxx most of the time. In fact, some ''outbound professionals'' recommend doing only that. If you've got something more premium and are contacting a business with some capital, then of course you're going to ask for more.
     
  5. thevictor

    thevictor Established Member

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    I agree. Responding with "reply with your best offer" is vague and may give the potential buyer the idea that you are going to play games and may not be worth their time to engage.

    So do you think that keeping it simple is the best option? Just a simple $ figure without any range?
     
  6. Lord Antares

    Lord Antares Top Member VIP

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    To be fair, I've never really understood the range thing with end users. If you tell them ''offer me somewhere between 1k and 3k'', they are going to offer 1k, no? When you say that, you've already given away your floor price, or so it seems.

    I'd definitely go with a clear price (that's higher than you're willing to accept). If they negotiate, then great, they're very interested. If they don't reply, you can follow up with ''there's room for negotiation. What is your offer?'' etc.
     
  7. thevictor

    thevictor Established Member

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    I am more curious as to the wording in the response:

    - End user - how much?
    - Seller - $X

    or

    - End user - how much?
    - Seller - Based on recent sales and other similar domain names currently listed, we estimate the value of this domain name to be $X.

    Is it better to include explanation on how you came up with the figure or do you get into details further in the negotiation process?
     
  8. Lord Antares

    Lord Antares Top Member VIP

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    I can't answer that question directly, however, I've seen someone suggest the following:

    When outbounding your domain, include a link to your DAN.com (or Godaddy or whatever you like) BIN page, so that the end user sees something tangible on a trusted website. They will feel like their money is safe + it will eliminate the need for conversation if they don't want it. Most people probably know that spam oftentimes equals scam, and they feel like they shouldn't even engage with the cold emails but when they see a listing on a reputable site, they might think otherwise.

    The person who gave this advice said it improved his conversions. I cannot personally verify this but it makes sense and it might be worth a shot.
     
  9. thevictor

    thevictor Established Member

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    That does make sense. I usually just include the domain name link and track whether they clicked on it or not. In some cases, they do and in others, they don't but reply to the email anyway. But my question is regarding the steps after they respond to the message/ email. More superficially, the wording/ context and length of the response to the "how much" question.

    Based on the responses thus far, it sounds like it is better to be direct and simple with the response without any additional explanation. Am I understanding correctly?
     
  10. MrAcidic

    MrAcidic Account Auto-Closed Gold Account

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  11. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    OK this is a personal preference but in my shopping life i hate when people make me jump through hoops to get an exact price for something. No games, tell me what it costs.

    So my preference is to state a figure, not a range, that you would readily accept. Now many will come back with a lower price, so agree with view above to leave a little bit of room if that happens.

    Bob

    PS disclosure I am probably among worst negotiator among NamePros one million members, so don't weigh my opinion too much. I have negotiated back and forth through DAN on some sales, but I am pretty soft in negotiations.
     
  12. Lord Antares

    Lord Antares Top Member VIP

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    The idea with DAN.com is to eliminate the wording altogether and let them buy directly (and you need to set a realistic BIN price for that). That's what the person giving advice said. He would just get an email that someone bought his domain without ever saying a word.

    But I can't answer your specific question precisely, I don't know. You'd need someone who experimented with a bunch of different methods and compared them. One would need a lot of experience and experimenting for that.
     
  13. Avtar629

    Avtar629 MarketDN.com Gold Account VIP

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  14. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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  15. thevictor

    thevictor Established Member

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    The specific example in the podcast is a bit or a lot different than selling domains. He is talking about wedding photography which technically is a service and pricing can vary based on the level of that service. In those cases, yes, providing a range based on the level of service, makes sense. However, it does not really apply to selling a domain name; unless you are also selling a development service along with the domain name.

    He does make one good point though. There is a difference between a price and value. A price by itself does not show value; just a number, and everyone can perceive it differently so I agree with including value with and to justify the price.
     
  16. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    For how long do you want to own the domain?
    it's $200 USD for the first year
     
  17. thevictor

    thevictor Established Member

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    Have you or do you know anyone who has tried that approach? Has it worked?
     
  18. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    I just learned it yesterday
    but for sure I will apply
     
  19. thevictor

    thevictor Established Member

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    If you don't mind and remember to, please keep us updated on this thread. I would be curious to know how it works out.

    Can we break it down a bit? For example:

    You reached out to a potential end user and they respond and ask: How much?
    You say: How long are you planning on owning the domain? We can sell it to you for $200 for the first year?

    To me, this sounds like a leasing play. So instead of asking to buy for 1 lump sum, you are asking for a payment plan from the start. Am I understanding it correctly?
     
  20. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    thats the plan


    the second thing I learn from this guy
    is to give alternatives

    so for a low ball offer on
    diamonds.com

    I would handreg a domain
    4diamonds.com

    and offer them this domain
    instead of diamonds.com
    and stick with my price for diamonds.com

    just learned this week
    tried it
    no response

    lets see
     
    Last edited: Sep 25, 2019
  21. thevictor

    thevictor Established Member

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    The alternative close is a good idea for the low balls for sure. I wouldn't do this too actively though. It may end up costing more money in the long run and being stuck with a bunch of no-good handregs.

    Thanks for sharing your thoughts @frank-germany
     
    Last edited: Sep 26, 2019
  22. Abdullah Abdullah

    Abdullah Abdullah Top Member Epik.com Staff VIP

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    Send them your desired price that has 30% room for discount.That is the best way to deal with such situation.
     
  23. thevictor

    thevictor Established Member

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    Seems to be the consensus. Now, do you think aside from including the price, there also should be an explanation of the price to add value? Do you or have you done outbound marketing? What has worked for you?
     
  24. Sheogorath

    Sheogorath Top Member VIP

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    Well, you can simply not respond until they send an offer.
    This can make them believe you think they are not serious so they must submit an offer.
    This is not very kind, but it is just business after all :)

    Also, you can try asking them to submit their best offer.
    If the offer is too low, you can counter it with a mega offer so they could understand they submitted a low ball offer.
    For example, a buyer offered me $2K for a 5 figures domain name, so I countered with $100K so they will understand they are far from the desired price.
    I also added a note that I expect to receive at least 5 figures(at least $xx,xxx) offer.
    I didn't sell the domain because it was way too much for them.
    It happened at Sedo.

    So it really depends on what are your expectations of the domain and how eager are you to sell the domain.
     
    Last edited: Sep 26, 2019
  25. thevictor

    thevictor Established Member

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    So you think it is best not to give a specific number and respond with "submit you best offer" and once they do, reply with a "mega" counter offer? IMO this may be a huge gamble and in may scare away a potential buyer. At the end of the day, they weren't the one to inquire first.
     

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