NameSilo

No sales since July, is there a whining fairy to reach out to

Labeled as discuss in Domain Selling and Domain Sales started by Mark4domain, Oct 15, 2019.

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  1. Sinh

    Sinh Top Member VIP

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    Me too, I don't have many sales like last year. Acquire high quality names and keep patient, that is a key to success in this industry.
     
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  2. namemarket

    namemarket Top Member VIP ★★★★★★★★★★

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    Yes, it is real slow. IMO, from 0.75% to 1.5% will sell in a year at end user-pricing level.

    So if you have 500 domains expect to sell approx' 5 (n) a year but even less :xf.frown: if Google stops publishing the extensions in search as they are said to be planning to do soon.
     
    Last edited: Oct 18, 2019
  3. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    @Rob Monster

    looks like I'm not the only one interested in that topic
    and your personal strategic recommendation

    >>>
    ....how you handle the risk of
    losing the customer after a short leasing period

    and how you sell the customer the idea of buying a domain name for $100K USD
    when he can lease it for $75 USD for a lifetime


    a $1000 USD / month on a $175 K USD domain makes much more sense
    then a $75 USD / month on a $100 K USD domain

    <<<
     
  4. Recons.Com

    Recons.Com Top Member VIP

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    You have to take what Rob writes about such strategies with a grain of salt.

    He is interested in people setting low lease figures even when they set ridiculously high sell. That way someone might get hooked while Epik will get commission and the name is guaranteed to stay there.
     
  5. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    The leases are typically capped at 10 years.

    So, after 10 years, the lessee would have to exercise the option or negotiate a new deal. By that time, they likely have SEO, email addresses, marketing collateral, etc.

    Usually long before that they figure out if their idea is working and will exercise the option of negotiate a buyout on some terms.

    This is not theory.
     
  6. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    somehow I knew it was a sales pitch...
     
  7. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    you did not answer the part of quitting early

    most likely their business will fail
    as they are not willing to surrender money to the project
    so they are most likely hobbyists
    most likely failing

    so you are left with a few hundred bugs
    on a $100K domain
    that you can't sell in the meantime
    and have some kind of bad history by now


    do I miss something
    is that strategy better than that?

    enlighten us, please
     
  8. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    Leasing and financing is so ridiculously obvious. Not everyone can afford a $100K domain, but tons of people can afford to make payments. This also allows them to use the best possible domain for their project without starving the rest of the business of startup cash. You can choose to use this tool or not, but it is absolutely effective and is precisely why we price most domains as Make Offer so that discussion can take place versus warding off people with sticker shock.
     
  9. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    If the buyer does not make payments, the domain returns to inventory. The domain in the meantime has additional organic traffic. Of course if you have a premium name you may have to be vigilant to who gets to use the domain, but I am talking about 2 word .COM domains that routinely get leased and financed when the person buying cannot afford the BIN price. The downside risk of a default is modest, and in the meantime, the domain cashflowed more than enough to cover the renewal fee.

    Most marketplaces have a weak implementation of the lease/finance solution because they are not actually a registrar. In the case of Epik, the domain is delivered instantly and the enforcement and re-billing is automated while the lessee can manage the domain on their own directly from their Epik control panel 24/7. That is a superior implementation of the leasing/financing idea, plain and simple.
     
  10. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    yeah agreed.
    that sounds like a good idea.
    I love it actually.

    But I was not able to successfully implement it
    ( yes I didn't try epik on that )

    as the prospect wants to own the domain
    and buy it cheaply

    they do not want to spend money on a domain and build it up
    that they don't own

    and as they have no money
    they will fail most likely

    they are not really committed
    that's why they will return the domain

    how do you handle these issues?

    do you have a minimum length of leasing period?
    do you collect upfront fees?

    do you have a penalty fee?

    don't get me wrong
    I'm interested to develop a WORKING lease concept


    or are you just trying to covert domainers into epik customers
    with unmatured ideas that sound like a great plan?
     
    Last edited: Oct 18, 2019
  11. Mister Funsky

    Mister Funsky Top Member VIP

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    I had a name leased thru Epik at one time...the person eventually let it go but it was awesome to get that income...$75 a month helped keep that name (and others) regged. Great option for a buyer that has short term plans or limited funds.
     
  12. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    Exactly. There is essentially no downside. Just incremental cashflow and additional traffic.

    Sometimes your lessee comes back later when they get more funding.

    The essential point is this:

    1. Make offer pricing lets you make sure you have priced for what the value is to the BUYER. The same name in the hands of two different operators can vary massively. For one guy it is a hobby project. For another guy it is a private equity backed enterprise with great ambitions.

    2. If the buyer does not want to buy the domain, they still have the option of being in a conversation. However, instead of "how much can you afford", the conversation is about "a lease or finance" option where they have full use of the domain while they make their purchases.

    As more and more wealth consolidates into fewer hands, the mid-market is being collapsed. That is precisely why I prefer the "barbell" strategy of selling domains for high amounts that make business sense for the buyer, but still having the flexibility to enable a boot-strapper when they come along.
     
  13. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    as long as you are only talking about theoretical benefits
    that is not a strategy but a sales pitch for epik
     
  14. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    Frank - you are becoming a broken record on this one. I can pretty much guarantee you that Epik does more domain leases than anyone. If you choose to be stuck in 1995, be my guest, but try not to drag others down with you.
     
  15. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    I have done domain leases more than 10 years ago
    some were profitable
    some were devastating

    that why I just don't believe in every nice idea
    unless its an exact plan
    what happens if ...
    how can we sell it
    how can we make it profitable
    how can we convince a buyer
    how can we make him stay in the lease

    just lease for a month and be happy afterward
    is good for a $400 usd domain

    but as I understand you are talking about an unmodified strategy
    on a $100 k USD domain
     
    Last edited: Oct 18, 2019
  16. namemarket

    namemarket Top Member VIP ★★★★★★★★★★

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    It seems far-fetched to me anyone would be willing to tie-up a 100k name and unable to sell to anyone else for 10 years or longer for only $75 monthly income.

    And if you offer to do that on other names how can you sell any for their value, i.e. if you extrapolate that $75 to 100k ratio to say a 10k name it means your payments are $7.50-month :xf.smile: I am sure no one would want to pay 10k up-front vs $7.50 a month :xf.wink:
     
    Last edited: Oct 18, 2019
  17. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO Gold Account VIP

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    You are missing the point.

    The initial tactic is to focus on the outright sale.

    The followup tactic is to offer to finance, e.g. over 1-3 years.

    The last option is to offer a lease, with or without a purchase option.

    All 3 are good options, depending on the buyer's circumstance. You are thinking too narrowly because you are comparing Epik landers to Sedo, or Afternic or other closed marketplaces.

    With Epik, we give you the full contact details of the prospect. It is possible to have a consultative sale with the prospect. If you don't want to do that, then an Epik staffer can do it.

    And ICYMI, I do close many deals for clients and am happy to provide that service. We continue to optimize and automate many of those workflows so it scales nicely.
     
  18. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    you are just pitching and not giving answers

    I'm not comparing with sedo / dan / whatever

    but to my own landing pages
    where I have all the details and payment options
     
  19. Recons.Com

    Recons.Com Top Member VIP

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    Some domain investing tips are not fit for all. Some, like Mann (don't know your portfolio size or quality) can afford to allocate portion of their portfolio to ridiculously priced segment. He has data to back it up, he has regular cash flow from normally priced ones (he has even $xxx names) to deal with the drastically reduced sell through rates. For others, pricing names at $100K might mean no sale for long time.

    At $100K for brandable, your sell through might go from 1% to 0.02%. If you have 10000 names like this, 1-2 sales might give you similar outcome, but if you have 1000 names, it might mean you have to wait 10 years for one sale and few $75/month leases won't cover your renewals.

    I checked, for example, the name smart/back/com, GD values it at $2700. I have much higher valued names (given that I ignore GD bad valuations or where it undervalues 4L.coms etc.) priced at low $xxxxx and have sold only 4 in the past 2 years in that price range.
     
  20. Recons.Com

    Recons.Com Top Member VIP

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    For absolute majority of companies $xxx,xxx for domain is out of question. Even multi-million startups are taught in incubators that domain is not that important in the beginning, so they will settle for a crappy alternative. And that is for a real prem domain. If it is just a good word+word or word+suffix brandable, they will have thousands of as good or nearly as good alternatives at low xxxx.

    And then, factor in that only 1 in 10 startups make it, then you realize that your chance of getting from 75$/mo to 100K windfall is 1 in 10 or even 1 in 20, as they might either rebrand or negotiate much lower price.

    If @Rob Monster really wants to be helpful here, he'd provide some stats from either his own portfolio or overall Epik's about how the price increase of 50 times affects the sell through rate and what % of names get leased and what is the average length of the lease.

    Instead, unfortunately, he chooses to share success stories only which has zero usefulness for analytics, at best, and can be misleading, at worst.
     
  21. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    I wish I could articulate myself as well as you do!
     
  22. lock

    lock PremiumNameDomain.com VIP

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    I am feeling it slow which is unusual as my domains suit everyone I just got rid of all my BIN pricing for make offer spent a week changing everything but going to have to be patient with the low ballers and spam.
     
    Last edited: Oct 19, 2019
  23. Don Gondon

    Don Gondon Established Member

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    I don't get that criticism. There is an extra option almost nowhere else provides. If it does not suit your sales approach, you don't have to use it. To me it sounds like a great increase of possibilities both for sellers and buyers. In fact, there are some domains out there (listed at marketplaces with BINs, no contacts available) I would gladly buy myself using the lease option. Maybe they move to Epik and I get the chance.
     
  24. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    as far as I understand nobody critics the leasing option

    the critique is this:

    creating hope by hyping
    neither tested nor proven fragments of a
    therefore misleading sales strategy

    for the sole purpose
    of making domainers
    switch over to epik
     
  25. Don Gondon

    Don Gondon Established Member

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    Lease in general is very well-proven and may be extremely beneficial for the wide range of businesses which know how to use it. Domain name is just another type of asset where all of the leasing advantages can be applied.
     

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