Need Advice from some Pros ASAP

[staringatascreen]

So I'm pretty new to this whole game. A long time ago I secured a gtld domain and only after did I realize that the .com was already registered by a decently successful company. Me: Keyword.gtld Them: Keywordgtld.com I posted a while ago about this but most people gave me inconclusive advice as to what to do. So I held onto it.

I parked it and decided today to email the company. I told them that I had around 500 visitors to my domain name in the past several months and that they were probably looking for the company's site. This is a half truth at best since no metrics actually exist to explain why they came to my domain.

Anyway, the company wrote back to me and said while they weren't willing to rebrand at this time, they were interested "what kind of fee" would be required to transfer the domain to them. Is this a setup for a sales pitch? If so, how should I price this domain?

A PM will include more specifics. But I'm trying to ascertain how to move forward as I'd like to make sure the company gets an email by the end of the day.

 

[deez007]

I think the best way you can close the deal is to do some calculations.

Like, what niche is the company in? Are they selling a product or service, are their customers generally once of customers or long term customers?

These questions may seem totally unrelated to how to price ur domain but let me explain the logic so that it makes more sense.

Let say for example the business is a real estate company. When they sell a house they get around 5-7% commission (sometimes more) lets assume just for illustrative purposes that the average house selling price is $100 000 ... so if they get 5% of that it's $5000. Now, you domain currently gets 500 visitors. It's a Gtld so chances are the visitors are looking for that particular service/company in that specific area. So chances are the traffic is good quality. Lets work on a tiny conversion rate of 1% ... 1% of 500 = 5 ...so let say they get 5 new potential clients/hot leads from ur domain alone per month. out of this 5 they close 1 sale. Thats $5000 per month that they would be making. In this particular case, I would price the domain at around $25 000 ...

Obviously you would need use the rough formula above to your own scenario but also take into consideration previous domain sales history in the same niche

 

[tvanrijt]

Great advice from @deez007 , however I would like to look at it from another point of view.

You say you are fairly new. I am fairly new as well. I don't want to invest too much before I get returns, so for me, seed money is very valuable. With that being said, at this point I would take a sale of $ 1000,- now over a sale of $ 10.000,- in like 8 months. Of course, the returns are higher by waiting, but $ 1000,- seed money could also lead to $ 10.000,- if spent wisely. Furthermore, a sale in the beginning stages of domaining REALLY boosts morale, I experienced it myself.

So with that being said, and with their comment "they weren't willing to rebrand at this time" (loosely translated: we won't spend a lot on this) in mind, I would say: use the calculations above, but be more cautious. If you for instance say:

"let's assume only 20% of the visitors is actually looking for your services", it will get you to a $ 5.000,- asking price. If the domain is a startup, I also sometimes leave an opening for a counter offer.

For me, I prefer quick sales and more sales over waiting for the higher price. I guess the question here is what you would prefer. If you would like the sale to happen and are willing to compromise on price to actually make it happen, make sure you don't scare him away.

Hope this helps. Please note that I am inexperienced as well. I have made some sales, but mostly low $ xxx to mid $ xxx, as I just choose more sales in this price range to keep getting seed money and slowly grow. Less risky, but also less rewarding.

 

[Asfas1000]

In reality, does the domain have any traffic ?

 

[staringatascreen]

Thanks for the advice!

I'm really trying to not scare this person away as it really isn't that strong a domain to begin with.

The total traffic comes from my parking report, but really what do those numbers mean? Probably not much...

I'd still love some further input! The company is rather large and successful. I'm just unsure of how attuned their bs meter is...

 

[staringatascreen]

How would any of you go about closing it? I would rathet price low. A sale now is more important. But could I price high and leave the door open for negotiations?

Or should I say I have had x offers of x money and you need to beat this offer?

 

[Jurgen Wolf]

Generic term?
Or their brand is trademarked?

 

[Jurgen Wolf]

I had around 500 visitors to my domain name in the past several months

This is just another domainers and some unfiltered bots...

 

[staringatascreen]

Yeah, I know. The visitor thing was kind of a stretch.
It's not a trademark issue.

 

[Jurgen Wolf]

If no TM-issue - then from $2,500...
Defensive purchases (or for redirect) are usually low $x,xxx and no more than $5K... in 95% of cases.

 

[staringatascreen]

If no TM-issue - then from $2,500...
Defensive purchases (or for redirect) are usually low $x,xxx and no more than $5K... in 95% of cases.

So would it be safer to go lower, or quote at that price and then leave the door open for negotiations? Or just flat out demand a price of 2k?

 

[Jurgen Wolf]

Answer that you are considering $x,xxx offers only.
And that's all.

 

[staringatascreen]

Answer that you are considering $x,xxx offers only.
And that's all.

Oooh.. niice touch.

The only problem I fear is that with a price so high they'll do a little investigating and realize that the domain may not actually be that worthwhile to their venture. Is this a legit fear? Or should i exude a little bit of over confidence and take the risk?

 

[Jurgen Wolf]

$x,xxx-range for offers from serious buyers is not high, it is common.
So I don't understand your fears...

 

[staringatascreen]

Lol. My fear is that I'm new and I don't have a lot of experience.

I appreciate the advice, but I also appreciate empathy

I will try out this method and see if it gets me anywhere.

 

[staringatascreen]

OK. Pressed the send button with a hesitant finger. Now I guess it's the waiting game....

 

[Jurgen Wolf]

Even if no sale and if your keyword is good - don't worry about this company...
Another buyers will find you...

 

[staringatascreen]

OMG OMG Oh my god.

Ok so they wrote back.

He was a little miffed that I said x,xxx as he put it "That's anywhere from 1,000 to 9,999."

He also said if it's in the lower range, 1-2, then it would be "worth discussing."

OK, that's seriously cray cray for me. I am thinking of saying something to the effect of "Sorry, I meant to put LOW x,xxx. The highest offer I've received so far is 1,259 (or something equally untrue)."

He also made it a point to mention that it's by no means a critical buy for them.

OK guys, please help me close this. Total newb here treading in dark waters...

 

[staringatascreen]

Even if no sale and if your keyword is good - don't worry about this company...
Another buyers will find you...

Honestly, it's not that good...

 

[DomainVP]

With your skill level and approach, take it and run.

This will obviously be a big win for you, so let them know you will work with them and meet them at a price point of $2500.

Good luck.

 

[biggie]

just give them a price.

quit playing around and "act" like you've done this before.

Good Luck

imo...

 

[Jurgen Wolf]

When ready - you may use the following escrow services:
Epik (FREE for their domains and 1.5% for others)
Sedo (3% or min. $60 - if ordered separately and the domain is NOT listed on their marketplace)

 

[Jelani Abdus-Salaam]

Fake it till you make it. He doesnt know that you are new, so you gotta act like youve done hundreds of these sales even if its your first one. Be patient and seal the deal

 

[Chris Hydrick]

Fake it till you make it. He doesnt know that you are new, so you gotta act like youve done hundreds of these sales even if its your first one. Be patient and seal the deal

The Donald J. Trump approach... Everybody's talking about this domain. Everybody wants it. You have the option to buy this domain before anyone else. The question is, How bad do you want it? Because as long as everybody wants this domain, I'm in no hurry to sell it. I have lots of people I can sell this domain to, and you know that.

Since he's obviously made it, does the media ever ask him, who's everybody? Sure, anyone can name drop a few people, but in reality, sectioning people from another is a shady yet common and effective practice in both business and politics. :D

It's the confidence in believing in your sales ability / value of domain to understand your endusers. Use supply and demand economics. Gather all data. Be proud of your purchases, and confident in your sales. These two go hand in hand, because if you're not truly proud of your domain purchase, you may find it difficult selling your domain if your endusers don't come to you and/or aren't easily identified.

 

[staringatascreen]

OK, I gave him and asking price of 2.5

Let's see where this goes....