Telepathy...really?

[Keith]

I'm sorry but not a chance I'll ever pay $19 in order to negotiate on a domain. This is a clear money grab. You get bombarded with emails? Set up an automated system to field offers and go from there. This is the kind of shit that gives the domain industry a black eye!

 

[wwwweb]

Many times I get uneducated owners of similar domains, just asking a price, so they can get an idea of what to price their domain at. I simply do not have the time to waste with all these questions. Just not enough hours in the day.

I have blocks up on some of my domains in regards to minimum pricing, and as others will attest you will simply get a response like this in the price field 2222222222222222, then you have to manually review it, then close it out. Unless they whip out their credit card, and are held accountable for that bid, it will not stop.

This takes time, time is money, some people have a lot of time on their hands to waste.

 

[Domainace]

$19 isn't going to change most lives. Anyone can pay the fee and waste time negotiating just as easy as if there wasn't a fee.

But you didn't. And, like you, most people will not pay that fee unless they really want that name (in other words, they are end users). If you desperately need a name for your company and are willing to go 6 figures or more, $19 is completely inconsequential. And nobody is going tell their boss/investors that they are going with secondbestdomain.com because they object to paying $19 in principle.

Equally, I can't see anyone saying "I'll never buy another million dollar domain from them again because they ripped me off with that $19 fee." To many people, we are all squatters anyway. In this case, telepathy.com is telling a buyer right at the start "you have to play by our rules." That's an immense psychological advantage to start a negotiation that way. Might be worth risking the sacrifice of a possible serious buyer for that advantage.

 

[Keith]

But you didn't. And, like you, most people will not pay that fee unless they really want that name (in other words, they are end users). If you desperately need a name for your company and are willing to go 6 figures or more, $19 is completely inconsequential. And nobody is going tell their boss/investors that they are going with secondbestdomain.com because they object to paying $19 in principle.

Equally, I can't see anyone saying "I'll never buy another million dollar domain from them again because they ripped me off with that $19 fee." To many people, we are all squatters anyway. In this case, telepathy.com is telling a buyer right at the start "you have to play by our rules." That's an immense psychological advantage to start a negotiation that way. Might be worth risking the sacrifice of a possible serious buyer for that advantage.

The assumption is that a big budget will somehow close the deal with these guys. That's not the case. So now you've paid $19 which again, isn't life changing, and you might not get a domain either. You get nothing, they get something. Now multiply that nickel and diming by all the unsuccessful negotiations where $19 was paid.

 

[3sixty]

This is a service fee. It serves two purposes, to weed out time wasters and to cover operating costs (renewals, etc).

I have experienced it in other industries such as Real Estate. 90% of the time it will serve its purpose, of course there will be 10% who will object to this practice and Telepathy may lose a sale. But this is the percentages you play at in business and I am sure they have the experience to weigh up both sides.

For example I once did inquire into a house rental and the agency asked for a 3 figure service fee just to show me. I asked that if I took the house they would refund this fee and they said no. It didn't fit my values having owned an agency before so I promptly left and found a place myself after direct. But then again I am one of the 10% and they did not need my business.

Just food for thought, it does not have a clear right or wrong in my opinion.

 

[offersity]

But you didn't. And, like you, most people will not pay that fee unless they really want that name (in other words, they are end users). If you desperately need a name for your company and are willing to go 6 figures or more, $19 is completely inconsequential. And nobody is going tell their boss/investors that they are going with secondbestdomain.com because they object to paying $19 in principle.

Equally, I can't see anyone saying "I'll never buy another million dollar domain from them again because they ripped me off with that $19 fee." To many people, we are all squatters anyway. In this case, telepathy.com is telling a buyer right at the start "you have to play by our rules." That's an immense psychological advantage to start a negotiation that way. Might be worth risking the sacrifice of a possible serious buyer for that advantage.

exactly... it is very simple really, if $19 bothers you, you definitely don't want the name that bad.

Principles don't always have to win... it's how life is...

 

[Keith]

exactly... it is very simple really, if $19 bothers you, you definitely don't want the name that bad.

Principles don't always have to win... it's how life is...

So you're ok with Ford charging you $19 to walk on the lot and look at sticker prices? How about Walmart charging you to walk in the store? I mean after all, if you don't pay the ask, you must not have a real interest in their inventory

 

[Ms Domainer]

BJ's, Sam's Club, and Costco charge a yearly membership fee.

 

[wwwweb]

So you're ok with Ford charging you $19 to walk on the lot and look at sticker prices? How about Walmart charging you to walk in the store? I mean after all, if you don't pay the ask, you must not have a real interest in their inventory

You are talking about one of a kind assets, not mass produced.

 

[Keith]

BJ's, Sam's Club, and Costco charge a yearly membership fee.

You're paying for the right to purchase goods in bulk which is well known. Just like you pay for a membership at the gym knowing full well you get something for your money. Not the case with telepathy. Their approach would be equivalent to Costco charging you $19 to tell you that the yearly membership is $59...

 

[Keith]

You are talking about one of a kind assets, not mass produced.

Most families need 1 car, maybe 2. Most businesses need 1 great domain, maybe 2. Quantities aren't the issue. It's the process to make a potential purchase which is the issue.

 

[wwwweb]

Most families need 1 car, maybe 2. Most businesses need 1 great domain, maybe 2. Quantities aren't the issue. It's the process to make a potential purchase which is the issue.

No one domain is the same, whereas cars, and other consumer goods can be duplicated and manufactured to quantity, and specs to the infinite degree.

If you need abc.com, and these guys own it, only one way to get it. Pay the $19.

 

[Keith]

If you need abc.com, and these guys owns it, only one way to get it. Pay the $19.

$19 doesn't mean you get the desired domain. It simply gets you into a negotiation. Regardless of the outcome they made money from you. That's the problem I have.

 

[bmugford]

I don't blame Telepathy. With an incredible portfolio it is a good way to weed out the time wasters and lowballers.

I receive lots of low quality inquiries myself. There is not enough time in the day to educate every potential buyer. It is easier just to ignore the lowest quality inquiries in my view and focus your efforts on the ones more likely to pan out. This is exactly what they are doing. If you are not willing to pay $19 to open negotiations, you are probably not a serious buyer.

GoDaddy offers essentially the same thing with GoDaddy Buy Service -
https://www.godaddy.com/domains/domain-broker.aspx

GoDaddy charges $49.99, as well as a 20% buyer's premium if the sale completes.

Network Solutions also offers a similar service called Certified Offer - http://www.networksolutions.com/domain-name-registration/certified-offer.jsp

They charge $39 per offer (under $25K) / $69 (over $25K) as well as a 5% buyer's premium.

DomainAgents.com also is another service that does this.

I have received multiple offers via all these services, so people are willing to pay it.
Overall the % that pans out via these services is so much higher than contacts via other methods.

Brad

 

[Vinod R]

Many people and companies know what they want and how they do it, some challenge the way we normally perceive things are. The point here is they are taking the 19$ without an actual result that needs to justify the payment made. They own the asset and they have the right to decide how they want to sell. They say that to you upfront they need 19$ its not that they don't tell you and charge your card, you have to decide if you should pay or not- there comes your power to pay or not. If you cannot justify that you choose not to pay.

A company have rules they follow it if the customer likes it or not, they have their own metrics which justify their actions and profitability. Doing something which others don't do does not make them bad. Its just a business model they adopted and following.

 

[cillx]

just in case i have T E L I P A T H I . C O M and you don't need to pay anything to know it's price! :D

 

[LucidDomains]

A customer walks into the Ford showroom and the agent shows them the cars.

Customer: where the ultra premium cars e.g. the ones that are above $500K.

Agent: we have those too but in a different building, viewing are by appointment only and there is a fee of $19.

Customer: $19? Are you kidding me? I'm not paying $19 to view your $500,000 cars.

Agent: we get 1000s of people per months asking to see the cars, 99% of those people never actually want to buy the car. Also there is an upkeep for the agent, and cleaning for the car.

Customer has two choices:

Customer: I am very interested and more than happy to pay $19, thank you for your time and best regards to the cleaners.

OR

Customer: I'm not paying $19 to see the $500,000 car. Goodbye.


Which option do you choose?

 

[TheFifty9Sound]

Anyone who is familiar with the Pareto 80 / 20 principle will know that this $19 thing makes perfect sense.

 

[deez007]

Absolute Insanity... $19 ... they can suck on my big left toe, I will let them do that for $5. If they want the big RIGHT toe then thats $20.

@TheFifty9Sound - Yep I know the 80/20 principle all too well BUT applying it in this context is down right greedy and unjustifiable.

 

[LucidDomains]

Absolute Insanity... $19 ... they can suck on my big left toe, I will let them do that for $5. If they want the big RIGHT toe then thats $20.

@TheFifty9Sound - Yep I know the 80/20 principle all too well BUT applying it in this context is down right greedy and unjustifiable.

"Greedy and unjustifiable", I bet most end users think that about what we do in general.

Do you sell your domains for reg. fee? No, You try and get the most money you can. That's how this business works.

 

[LucidDomains]

Anyway quite an interesting debate, I guess there are two camps. No opinion is considered wrong. It's up to you how you view it.

 

[deez007]

"Greedy and unjustifiable", I bet most end users think that about what we do in general.

Do you sell your domains for reg. fee? No, You try and get the most money you can. That's how this business works.

No mate that is not how business works.

If we had to put things in perspective: Then what you are saying is that when you walk into a restaurant. When you request the menu before you even eat they should charge you $5 just to look at the menu. - That's getting the most money you can from the customers... do you think that would work in a real life situation?.... Not a chance...

 

[LucidDomains]

No mate that is not how business works.

If we had to put things in perspective: Then what you are saying is that when you walk into a restaurant. When you request the menu before you even eat they should charge you $5 just to look at the menu. - That's getting the most money you can from the customers... do you think that would work in a real life situation?.... Not a chance...

A customer walks into the Ford showroom and the agent shows them the cars.

Customer: where the ultra premium cars e.g. the ones that are above $500K.

Agent: we have those too but in a different building, viewing are by appointment only and there is a fee of $19.

Customer: $19? Are you kidding me? I'm not paying $19 to view your $500,000 cars.

Agent: we get 1000s of people per months asking to see the cars, 99% of those people never actually want to buy the car. Also there is an upkeep for the agent, and cleaning for the car.

Customer has two choices:

Customer: I am very interested and more than happy to pay $19, thank you for your time and best regards to the cleaners.

OR

Customer: I'm not paying $19 to see the $500,000 car. Goodbye.


Which option do you choose?

Some of you guys are comparing domains like sdfsj23423.com to domains like sdd.com. Not all domains are created equal.

 

[Kingslayer]

A customer walks into the Ford showroom and the agent shows them the cars.

Customer: where the ultra premium cars e.g. the ones that are above $500K.

Agent: we have those too but in a different building, viewing are by appointment only and there is a fee of $19.

Customer: $19? Are you kidding me? I'm not paying $19 to view your $500,000 cars.

Agent: we get 1000s of people per months asking to see the cars, 99% of those people never actually want to buy the car. Also there is an upkeep for the agent, and cleaning for the car.

Customer has two choices:

Customer: I am very interested and more than happy to pay $19, thank you for your time and best regards to the cleaners.

OR

Customer: I'm not paying $19 to see the $500,000 car. Goodbye.


Which option do you choose?

I would say goodbye and move onto another company, it’s not so much $19 is a lot of money, it’s just the principle of it and that is them making more $ at the end of the day, if it wasn’t then why can’t a multi-million company find another ways to weed out time wasters if it bothers them that much?

Domaining is not the only industry where people get lowball offers and time wasters, yet charging people to ‘look’ or ‘enquire’ this is not a common theme, why? Because it’s controversial.

I wasn’t aware of Telepathy until this thread, but looking more into them, I’m sure their whole operation isn’t just run by 1 person, so we aren’t talking as if just 1 person is searching and replying to e-mails every day, isn’t this one of the reasons why companies have other members of staff on the payroll?

But yeah as you said, it is an interesting debate of 2 camps, i can see their pov, but i think they are going the wrong way about it.

 

[deez007]

You make an interesting point indeed. I do get what you are saying...

However, in a real world situation. An established brand like lets say Porsche, have their showrooms open to everyone. So even if you ride into their car park on a bicycle they will let you into the showroom to view the cars. If however you wanted a test drive then off course you will need to be pre-qualified to make sure you can actually afford to buy the car. Why would they let anyone into the showroom in the first place? Well, because they understand the kid riding into the car park today with a bicycle could be a multi millionaire in a few years time.

Consider the possibility that what if that simple act of letting this kid into the showroom to see the cars changed the course of his life BY giving him a taste of his "dream car" and this ended up giving him the motivation to do something spectacular with his life and he ends up being highly successful. What if the visit to the showroom was what set off the chain of events that ended up with him being a success. I;m not saying this is how things work for sure, but all I am saying is consider the possibility.

 

[LucidDomains]

No mate that is not how business works.

If we had to put things in perspective: Then what you are saying is that when you walk into a restaurant. When you request the menu before you even eat they should charge you $5 just to look at the menu. - That's getting the most money you can from the customers... do you think that would work in a real life situation?.... Not a chance...

If you want a reserve a table at a fancy restaurant. You call up and they it's $19 charge to reserve the table. Do you pay the $19 and take your partner to the fancy restaurant that they always wanted to go to or do you say no way and take them to MacDonald's instead?

The choice is yours.