Proving your credibility to End Users

[-Adam-]

Yesterday I contacted an owner of a .net to which I owned the counterpart .com of. I closed the sale in 3 days it was nothing fancy or big at all but I used my eBay account and feedback to verify who I was and that I was a legit seller. Since this was not an end user nor was he a domainer just someone who happened to be interested in the name I felt this was OK.

However I have been contacting more end users lately and was wondering if using my eBay account to verify who I am may be a bad idea? I have a 100% score but I do sell names on eBay as well from time to time when I get the urge. What I am wondering is what do all of you guys/gals do when an end user says I'll pay you but prove to me your legit first?

Thanks, Adam.

 

[-REECE-]

I don't see anything wrong with doing that if it works for you.

I had an enduser a few months ago kind of like you described -- "I'll pay you but prove to me your legit first" and I've had a few others like that in the past.

What I've found works well with endusers who are individuals rather than companies (although it really can apply to any enduser) is to try and make the person feel as comfortable as possible. Picking up the telephone and letting them know that you're a real person, letting them know that you're here for them and willing to answer any questions or address any concerns they may have, offering to proceed through Escrow.com and educate them both on how Escrow.com works and how Escrow.com will make sure both parties have a safe and successful transaction, etc.

 

[-Adam-]

Thanks Reece, I have looked into escrow but really never used the service before. I understand how it works and could see that setting a buyers mind at ease. I talk to strangers all day long in need of assistance but have never actually made a phone call or released my phone number to a potential customer. I may have to reconsider trying that and see if it helps out all.

 

[DavidH]

I simply ask them to check the whois of the name themselves and there they will note that the email I am using matches the email address of record.

If there is still any problem I will probably ring them to have a chat.

Most of the end users I sell to have established businesses and websites but they have no idea who I am and so they are sometimes wary about sending money.

Because I am usually selling at low-mid $$$ I normally push the name first and then ask them to pay. That way they have more confidence in me and it often impresses them enough to come back for more names in their particular niche.

 

[DotWeekly]

DNOA.org membership helps. < appears to not be working?
Use Sedo.com's 3% Escrow Service or Afternic or just regular Sedo to close the transaction.

 

[Spade]

Have you considered forming a Corporation? I do use my LLC with most of my contacts. This should make customers feel safe and it is usually inexpensive to setup. Mine was about $150.

 

[-Adam-]

Spade, I have considered that option. I am still getting familiar with Florida laws but a friend of mine said it is usually not to expensive to set up and would be a good alternative. I have also looked at filing a DBA as well for this state which I know they run $50.00.

 

[Spade]

Spade, I have considered that option. I am still getting familiar with Florida laws but a friend of mine said it is usually not to expensive to set up and would be a good alternative. I have also looked at filing a DBA as well for this state which I know they run $50.00.

Honestly - well worth the investment. Then you just call up the IRS and get an EIN. Then setup a business account at a bank - and your up and running and very much credible.

One issue though. If you decide to file for an LLC (or something like it). Dont call a Lawyer. In most states its only a matter of filling out 2-3 pages of forms. Call up your local Business Bureau and they can guide you through it. I found when I called companies and lawyers who specialize in filing corporate documents - they started at $600 and went up to $3,000.

 

[-Adam-]

Oh yea I know lawyers will over charge for that. I use to have a S-Corp in Ohio so I imagine it can't be to much different here. If it becomes to boggy I'll just ask my co worker who specializes in getting start up business off the ground. With an EIN though don't you still have to file quarterly even if there are no earnings?

 

[enlytend]

With an EIN though don't you still have to file quarterly even if there are no earnings?

No. The only thing you'd be filing quarterly would be estimated tax payments so you don't end up owning so much that you get a penalty - if there are no earnings there's nothing to "estimate". (Speaking as someone with an LLC - may be other rules for corporations).

 

[-Adam-]

Thanks enlytend, good to know.

 

[Jessica_ph]

It helps if you are a member of reputable forums like Namepros, Digitalpoint or DNF where they can verify you through your posts and/or reputation - granted you are a "good" and longstanding member in that community with positive contributions.

 

[-Adam-]

Jessica, I have considered that however I really like to leave out that kind of information as if they are computer savvy they may look up my username and see the domain name I am trying to sell to them or they just bought from me was flipped for a bigger profit than the $5 I picked it up for as an example. Granted I don't buy a whole lot of names here but I would rather not have that end up happening. Basically leaving out any possible sources of sales and prices between me and another user.

 

[Jessica_ph]

I see. You do have a point there.

I second Reece's advice. Be a real person, human being, when you talk to the buyer. Basically we deal with faceless people on the internet, but there's this "nth" sense we have that lets us gauge the person's demeanor or character just by the way he or she talks/communicates. So make a good first impression and sustain it.