advice How much you will ask for LLLL.com Selling to End User.

[jamaltq]

Hello guys.
I have LLLL.com refer to a big International Company.
They contacted me regarding purchasing my domain.
What is the best price to ask for it.
They are waiting for my respond.
Kindly advice.

 

[Domainzy]

You obviously did take offence, so I apologize for that.
Once again though, All of those things are completely irrelevant for an end-user sale like this one....Point 2) and point 4) have slight relevance.

Not sure how much experience you have selling to end-users.

To each their own.


But for other people reading this thread: If @jamaltq already knew "how much the buyer was willing to pay" and "how much it was worth to them" then he probably wouldn't have started this thread.

Since the company is an exact match for you domain, they have limited options. If they already have the .org or .net then they might not be willing to pay as much to get the .com.

@SirDrago is right, if you don't know your price, you look amateur. Would you buy a house or make an offer if the owner didn't price it first? Once you state your listing price, they will(should) ask why the price is $XX,XXX. What would your response be if your only question to yourself was "what are they willing to pay?" ... you answer...."Just because"..... Thats not how you close deals!

Your response to the buyers question of why how much could be:

Because similar properties(domains) in the area(.com) sold for $XX,XXX. Here is a list recent of public sales that are very similar to this domain:

List sales with similar CVCC.com patterns.
List sales with the first two letters
List sales with the last two letters


If you own the .net .org you can 'throw them in' to help close the deal. If the .net .org is already in use you can educate them on how some of their traffic will be lost to the .com.

As far as price goes, Its impossible to give an better 'range' without knowing the exact domain name. But I would recommend pricing the unknown CVCC.com for minimum of $25k-$30k shoot for more but don't settle for less.

Best of luck with the sale!

 

[SirDrago]

@Domainzy
Nailed it.

 

[jamaltq]

.net is an engineering company.Not related to them.
.org is just a domain name, No website.

 

[jamaltq]

The Market Capital of the Company is $900 million.

 

[techname]

Perhaps you should consider a broker, it would be worth the commission if they could get you a good price. They would also be able to add a level of professionalism to the process, which might appeal to the officers of the company, no offence intended.

 

[Mahogany]

The Market Capital of the Company is $900 million.

Congrats on your $xxx,xxx sale.... Definitely consider a broker now that you know they are a big player and have a serious budget.

 

[DomainVP]

No, this would suggest that you are unfamiliar with its value and/or uncomfortable dealing with businesses.

I can see where many people could see this, however, if a company makes you an offer that is significantly higher than the 'out of pocket' expenses that you incurred to register/maintain ownership of the domain - this can aide you just in case a UDRP is filed.

If you reply with a six-figure amount with little justification, it can be used against you.

Sure you can talk about acronyms, registration dates, them contacting you, and probably a few other defenses.

However, when you are talking about big money, it's smart to make sure you protect yourself in every way.

End users are getting savvy. I've received offers that were calculated correctly within a dollar what the renewal for domains registered for 'x' years would be, and have seen language reflecting people with UDRP knowledge.

Yes, I would ask six figures... but not until they make an offer significantly higher than the 'out of pocket' expenses that you incurred to register/maintain ownership of the domain.

Keep it light, and be clear; ask for a proposal, and promise them a dialogue where you will give them prompt consideration and a timely response.

 

[nvdomains]

I could give an appraisal, but have a few questions first:

1. Letter Pattern?: CVCV VCVC CCCC
2. A)Matching Acronym/Abbreviation for their company? B) If no, they buying as a Brandable then?
3. How many premium letters? (quad, triple, double)
4. Do they/you own the .net, .org, etc?

Congrats on the quality inbound!

Man! what are you suggesting?

Companies are not speculators. They are end users. They know what they are doing. They should already have some budget in the mind.

 

[SirDrago]

@DomainVP
I agree 100% that these companies are extremely savvy and frugal and won't hesitate to threaten you with legal action at a drop of a dime when it's in their best interest.
With that being said @Domainzy layed out a perfect professional response to a inquiry. Show in detail why you are asking that amount with verified facts of previous sale data.
Some suggest using a broker...
Please understand that tho this is a option the fact remains that 25 to 33% of the end sale price just went POOF!
Dealing with a company like this personally will absolutely take you out of your comfort zone but keep in mind that the EXTRA 20-30 grand in your pocket buys you some relief at the end.
UDRP...
This has been mentioned over and over and the truth is that I could have them spend over $25k before even seeing me in court.

 

[gilescoley]

Everything you stated is obvious(no offense)...and to determine "how valuable the domain is to them" and "how much they are willing to pay" There is data using history of sales, statistics, and facts which can help @jamaltq close the deal for a higher price.

sales history, stats, letter combo etc doesnt matter here, they have indicated they want the name

What matters and what determines how much you ask for is the following, all these factors come into it

What is ths company worth in total?
Annual turnover?
Who emailed you asking for the domain? (CEO, Business Devolopment, Legal Counsel etc)
What other names do they own? (if they own a lot, they probably have an idea about domain prices)
What name are they currently using? (it is .COM, CCTLD or a lesser extension?)

Personally, I would ask them to make an offer!

 

[jamaltq]

They offered me today $100.
I replied that the domain worth at least 5 figures.

 

[gotasale]

They offered me today $100.
I replied that the domain worth at least 5 figures.

you should not reply to these kind of offers...
but do not be sad they are not serious buyers anyway

and one last advice, never stop dreaming

 

[techname]

They offered me today $100.
I replied that the domain worth at least 5 figures.

These kinds of offers are discouraging, but you shouldn't lose hope.
I think in the last edition of the Domain Sherpas reviews, they talked about how low-ball offers from end users can eventually be turned around into very lucrative transactions. Good luck!
http://www.domainsherpa.com/review-20160125/ (hopefully this is the one)

 

[winst]

Not every company is willing to pay top dollars for domain names. But at the same time, many domain name negotions started around $100. I had one started around $200 and ended up 5 figures.

If you think the buyer is serious, explain in detail why the name is worth 5 figures.

 

[jamaltq]

Not every company is willing to pay top dollars for domain names. But at the same time, many domain name negotions started around $100. I had one started around $200 and ended up 5 figures.

If you think the buyer is serious, explain in detail why the name is worth 5 figures.

I don't know how much serious they are, but what I know is that my domain is exact match their company name.

 

[NAMEFISH]

hey man you are a rich guy now just be realistic and just wait

 

[SlimPickins]

Keep the faith Jamaltq.....

I hope it turns into a great sale, despite this deflating $100 initial offer although they have deep pockets and clear benefit that the exact match domain would/could be for their biz. But unfortunately just because a person/org/biz COULD afford to pay top dollar doesn't mean they ever would.

Somewhat similar story, which showed me in pretty bittersweet terms how unbelievably frugal BIG biz can be, I had an interested party go through 2 different registrar brokers AND an internet law attorney to contact me regarding a 4-letter .com that I truly was NOT interested in selling. Had private whois deliberately to avoid being contacted about the domain because it was and is a domain for a really important project of mine that was still in offline development. In the span of 2 weeks they went through these 3 channels (and yes the email from the attorney that was clearly an expert in domain law, trademarks etc had me a bit shaken) but my reply to their offer, which NEVER changed from $1000, was "appreciate the interest, but the domain is not for sale". I didn't find out who the interested party was until a month later when I noticed a trademark had been filed for the exact term of my 4-letter .com by this same lawyer. The interested party was a multi-million dollar publicly traded company that had also been on a recent diversifying and buying spree of online business etc. They spent more money sending inquiring about the domain anonymously through 2 brokers and the time for their lawyer to write up an email than they were even willing to offer for the domain itself. They never raised their offer, never even asked "how much do you want/think it is worth". After my reply to the lawyer it was the last I ever heard. So it was bittersweet like I said because I genuinely did NOT want to sell the domain and abandon my project, had a very clear plan and even an LLC formed for it..... BUT if there ever was a likelihood of selling this domain for BIG money, ie receiving an offer that would have been foolish not to accept, that "should" have been it. Is not the exact same scenario since my domain was NOT an exact match for their business name, but was obviously an exact match for something they had brewing as an offshoot.

That yours apparently is an EXACT match for their business name, I guess I am left wondering:

1) what have they been using so far as their primary domain?
2) how long have YOU had the domain (and, if not very long, was it developed and "unavailable" before)?
3) If you had done your research and reached out to THEM, what asking price would you have quoted and been happy with if they had accepted?
4) How many if any other strong possibilities for enduser buyers have you found out there? If there are a few, and you don't mind the commission, you could also look at starting a "direct auction" at SEDO (or platform of your choice that lets you set a reserve) and setup an auction with your reserve price, contact all possible buyers, send them the link and let them know that you have decided to let the name go on auction. Depending on what your reserve is you might sell it... but, if reserve is too high, and/or there is limited bidding and doesn't come close to your dream reserve, you might lose some negotiating room and wind up only being able to sell to them directly for around whatever the final offer was. Just idears.

Good luck!

 

[Mahogany]

Keep the faith Jamaltq.....

Mind sharing what your reply to them was?

 

[Domainzy]

sales history, stats, letter combo etc doesnt matter here, they have indicated they want the name

What matters and what determines how much you ask for is the following, all these factors come into it

What is ths company worth in total?
Annual turnover?
Who emailed you asking for the domain? (CEO, Business Devolopment, Legal Counsel etc)
What other names do they own? (if they own a lot, they probably have an idea about domain prices)
What name are they currently using? (it is .COM, CCTLD or a lesser extension?)

Personally, I would ask them to make an offer!

I would do exactly the opposite of this post! Especially asking them to make an offer...

What do you tell the buyer when the buyer ask why this domain is priced $XX,XXX?
A) Your company is worth ___ in total.... so I'm asking_____.
B) Your Annual turnover is____ .....so Im asking_____.
C) Your CEO emailed me...so Im asking_____.
D) You also own the other domain names___&___&___...So I'm asking___.
E) Your using the domain____....so Im asking___.

Pricing your domain property only on how deep their pockets are?.... FAIL

or....OR... you could be professional:

This domain is only priced at $___. Because .....
A) Similar properties(4L domains) have sold in the area(.com) for $__.
B) Not just 1 or 2 sales but hundreds of similar sales, here is the list...
C) Bonus features: Oceanfront(CVCV), lakefront(VCVC) Pondfront(random letters)
D) Property has __ amount of acres. We could possible include some extra acres(.net .org)
E) Property is next to a busy road, and gets ___ amount of traffic.
F) We have another interested party, they offered $____.

To each their own, however I prefer to be professional and ready to quickly respond with stats & facts. Knowing how much their company is worth, their annual turnover, etc are only stats ABOUT THEM. You need to have your stats ready ABOUT YOUR DOMAIN property. If you go into the negotiations only knowing how deep their pockets are, your gonna look unprofessional when they ask about, stats, facts,etc.

Once again.... yes these 'stats and features' DO MATTER! You shouldn't try to sell your apartment at beachfront prices just because the buyer has deep pockets......

 

[Nsmith91]

@UWON,
Congrats on getting unsolicited interest from an end-user! It's what we all dream of! Although the initial offer is a bit disappointing, it can only go up from there! Good luck!

Also some very insightful responses on how the negotiating process should be handled. I'll definitely keep some of it in mind with my next sale!

 

[SlimPickins]

on top of what Domainzy said, I would definitely avoid focusing on how the domain is perfect for "THEM" and how they obviously COULD pay it based on who they are/what they are worth because that makes it look like you are only pricing the domain BECAUSE it is them, but would probably/perhaps not ask the same price if just anyone inquired about it.... and maybe highlights how the domain fits THEM so well, but is unlikely to be a match/hot asset for anyone else soon.

Basing your asking price on comparable sales, or simply stating that is your asking price and what it would take to persuade you to abandon future development plans etc and sell now, regardless of who the buyer is, is better than saying I know you can afford a lot so I am going to ask for a lot. Of course, those factors are important for YOU to evaluate and take into consideration behind the scenes and to formulate your asking price, but letting them catch whiff that your price IS based on knowing who they are and what they could afford may very well backfire.

 

[techname]

I would do exactly the opposite of this post! Especially asking them to make an offer...

Some good points and don't forget to mention that dudu.com sold for a mill!
http://techcrunch.com/2012/01/05/and-the-first-1-million-domain-name-sale-of-2012-is-dudu-com/

 

[techname]

Looks like I messed that up, this part shouldn't have been in the quotes:

Some good points and don't forget to mention that dudu.com sold for a mill!
http://techcrunch.com/2012/01/05/and-the-first-1-million-domain-name-sale-of-2012-is-dudu-com/

 

[jamaltq]

Many thanks guys for all posts and advice.
They are just contacted me now again, they offered $1000.

 

[SlimPickins]

".... so you're sayin' there's a CHANCE!?"

good luck with negotiations, look forward to the updates and hopefully sale!