advice Selling strategy

[zac3366]

We were recently contacted by someone from Ename ("The #1 domain name marketplace in China"), asking for a client if we would like to sell a domain. At first the client's budget was $5,000. Now, after a few days and with no hard negotiations, their budget has gone up to $30,000. Me and my partners feel this domain name could be worth a lot more for the right buyer. We don't know who the buyer is, but one of the largest online companies in China has a brand/product that matches the .com domain name.

We think this might a real opportunity for us that we would like to explore. We don't have much experience when it comes to selling domains. The question is, what to we do next?

1. Ask who the buyer is to be able to negotiate better?
2. Set a high fixed price and see what they say?
3. Start an auction and contact the companies we think might be interested in the domain name?
4. Hire someone professional to negotiate the sale for us?
5. Something else?

Any advice is welcome

 

[biggie]

The question is, what to we do next?

Hi

why not just ask for amount you want, to replace the domain from your portfolio?

imo....

 

[FolioTeam]

Set a price that you are happy with and that is within the range of what similar names have sold for. I've never understood people who price their domains based on who is buying.

 

[likemike]

It depends what your end goal is and how much you need the money. If you are independently wealthy so be it. You can hold that name for as long as you like. But if you are being offered something reasonable I'd work out a sale. Domaining is often referred to as a 1 percent business, meaning that professional domainers sell one percent of there inventory a year if they are doing well.

 

[likemike]

You risk losing the buyer all together if you pull the old online auction routine. However you decide to go good luck with things!

 

[topdom]

I was offered 5K , and then 40K+, by different people (and with time gap about 1-2 years, hold time over a decade), I accepted the second one.
My top sale happened this way. It was almost clear I wouldn't get a much higher price.
Every situation is different. There may be TM issues. I had a cctld I kept for more than a decade which I sold for 10K although it could get 1M (logically), but 10k sale was painful enough and I let it go. I'm paranoid about agents, but endusers don't deal with sellers directly, strangely. Can buyers prefer to pay more sometimes, because the person who handles the sale would get more money out of it, I think this is not impossible either. Can their lawyers offer 100 or UDRP, although their company would be willing to 100K: very possible. Sometimes, wording/mood of the response makes big difference, I suspect. You may need to stay cool, although you may feel warm.

 

[AEProgram]

If you don't have experience with Chinese buyers hire an expert that does. In almost all cases people mess these sales up. There is a 95% possibility you already lost the sale by waiting.

Time is critical right now. Chinese buyers have incredible power to walk away and never think about a product again if they feel things are not going smooth. I hope you can still save the sale by stopping all games and responding with a clear buy it now price that has a deadline. Deadlines in Chinese culture is not a pressure technique, it is respected.

 

[lovely4ever]

Aren't there approximately 1500 extensions in the TLDs? Just wondering about the other 1490+ options.....

i believe he locked the most popular 11 extensions . the rest of extensions all not common to be used for big reputable companies .
and since he locked them since 12 years , i am sure the .xyz is not with swetha

.

 

[zac3366]

Your first question was who is the potential buyer. That's a great question, and sadly one that tends to remain hidden when an intermediary is involved. You could always ask, but don't be surprised if the answer is that they can't disclose that.

It depends what your end goal is and how much you need the money. If you are independently wealthy so be it. You can hold that name for as long as you like. But if you are being offered something reasonable I'd work out a sale. Domaining is often referred to as a 1 percent business, meaning that professional domainers sell one percent of there inventory a year if they are doing well.

Thanks for your response!

I'm not independently wealthy But I don't want to sell it for what they are currently offering. And like I said, I see a great potential here to make a really good profit that would make a significant difference to me and my business. I am not a professional domainer, I just happen to own a few domains for projects I am working on or once planned to work on

 

[zac3366]

No need to ask who the buyer is.

Set your price. If it's worth it to them, they'll bite. If it isn't, they'll walk. Are you okay with walking away from a 30k offer after a 12year hold?

Yes.

 

[frank-germany]

1. Ask who the buyer is to be able to negotiate better?
2. 

they won't tell you anyway

1. Hire someone professional to negotiate the sale for us?

why? you can do it yourself



look they want the name.
that's cool

now you need a price
one you decide

tell them and stick with it.

that's all.

 

[UncleBrand]

Did they seem to be straightforward up front about the top price offered, or were you able to get much higher prices with further negotiation?

i was always able to increase from the initial offer
but each domain is a different case, some domains were a dying trend, so i was happy with low 4 figures

my experience is to always negotiate with Chinese and middle east buyers, because they could disappear if you accept their initial offer

 

[karmaco]

No way to know without knowing the name. With other extensions in your possession I would ask for what I really want. Next they will be hitting you up for an alt extension

 

[biggie]

I guess, if you want to maximize the profit it depends on how much the domain is worth för the buyer.

Hi

if, you let buyer decide it's worth, do you think you will get the maximum profit?

imo...

 

[gilescoley]

I would be sceptical if the offer goes from $5k to $30k without any negotiations. Sounds like a fake offer to me. I hope it isn't for your sake.

Good luck, hope it works out

 

[UncleBrand]

ename brokers are reliable,
i had good experience with them with the names i sold there
i remember being nervous in the first deal closed at ename,
but everything worked just fine in a few days i received the cash

 

[frank-germany]

Would it be considered unprofessional to start an online auction where I invite the current buyer and others that I think might be interested? And would it be fruitful?

highly recommend not to auction
as you have only 1 buyer for now

 

[zac3366]

they won't tell you anyway

1. Hire someone professional to negotiate the sale for us?

why? you can do it yourself



look they want the name.
that's cool

now you need a price
one you decide

tell them and stick with it.

that's all.

You make it sound so easy Thanks for your input!

 

[UncleBrand]

Ok, did you pay a fee to ename or did the buyer do that?

the full agreed amount was deposited into my ename account,
withdraw fees depend on the method you choose(paypal/bank), make sure to choose the cheapest option for you
the fees depend on the country you reside

 

[lovely4ever]

Is the domain .com or not ?

Is the domain is one keyword ?

Is the domain meaningless brandable or contain dictionary keywords ?

Is the domain valuable for Chinese people only or can be for any population ?

is the domain taken in any other extensions or
not ? If yes , taken in how many extension ?

Is it pronounceable domain or not ?

How many characters the domain ?

how many millions are the exact match results when you search it in google ?

What’s the age of this domain ?

Since how long you owned this domain and since then have you got offers from others ?

Based on what you And your partners feel this domain name could be worth a lot more for the right buyer ?


.

 

[zac3366]

Thanks,

I guess, if you want to maximize the profit it depends on how much the domain is worth för the buyer. icloud.com is worth much more to Apple than to most/all other companies.

 

[zac3366]

Thanks for your response.

It’s a six letter .com domain, made of two three letter English dictionary keywords. Very pronouncable. I own the same name with twelve other domain extensions, among them .net, .org and .us.

I bought the domain 12 years ago and have been approched to sell it like once a year since then, but I haven’t gotten any substancial offers until now.

 

[LoveCatchyDomains]

Your first question was who is the potential buyer. That's a great question, and sadly one that tends to remain hidden when an intermediary is involved. You could always ask, but don't be surprised if the answer is that they can't disclose that.

 

[lovely4ever]

Thanks for your response.

It’s a six letter .com domain, made of two three letter English dictionary keywords. Very pronouncable. I own the same name with twelve other domain extensions, among them .net, .org and .us.

I bought the domain 12 years ago and have been approched to sell it like once a year since then, but I haven’t gotten any substancial offers until now.

if you own the other 11 extensions , that means you locked this domain very well ! you are in strong position since you kept no other chance for them ( buyers ) to find alternative !
you can raise the price to 50k by offering them the ( .net .org .us ) all added as a full package . with the ( .com )


.

 

[zac3366]

Have you researched any potential Chinese trademark issues?

Another point to consider is whether culturally there is a different way to deal with negotiations with a company in China? A domain broker, with experience with this type of sale, may be helpful.

I have not done much research. What are you thinking of, more specifically?

Good point regarding culture. The domain broker that represents the client seems very "international" and informal in the communication we've had so far, but that could be an important point. Especially if it comes to talking directly to the buyer.