They'll Pay Thousands On Advertising, But Nothing For A Domain?!

[poker_bears]

I don't get it. I have a very nice brandable name. It's pronounceable, someone's last name, an actual generic product name, worth some decent $$$$.

So the CEO of a mid sized company calls me and tries to strongarm me into giving it to him for nothing. I politely explain to him why it's worth much much more and that I actually have development plans for it(I do). The guy all but tells me to f-off and that I'm lucky he offered $100.

So this same fool then contacts me through Sedo a couple days later pretending to be someone different. I again politely explain to him why his $100 offer is a bit low (I paid high $$$ for it) and extend to him what I think is a fair offer for both of us (I really need a new laptop otherwise I wouldn't have considered selling). He lowers his bid and tells me that I'm basically a thief. I cancel negotiations.

WTF is wrong with people! So they'll pay thousands of dollars for a radio or tv spot that lasts seconds without a 2nd thought, but nothing for a domain name that will REPRESENT their business and last forever!?

I don't think the general public has any idea of the true value of domains.

You guys that do this for a living... I honestly don't know how you deal with all the stupid out there.

 

[bmugford]

Just ignore it and move on. People like that are not worth wasting your time on.

Brad

 

[l-l-l.com]

Exactly not worth wasting your time in this..

There are always people who would need everything at a bargain

 

[snoop]

I don't get it. I have a very nice brandable name. It's pronounceable, someone's last name, an actual generic product name, worth some decent $$$$.

so,

-You paid hundreds.
-He thinks it is worth $100.
-You think it is worth thousands.

Somehow I think the truth is somewhere in the middle, ie hundreds. But you can't expect someone outside of this industry to necessarily know an accurate value.

WTF is wrong with people! So they'll pay thousands of dollars for a radio or tv spot that lasts seconds without a 2nd thought, but nothing for a domain name that will REPRESENT their business and last forever!?

A radio or tv spot likely means definite customers. a domain is probably one of many choices for them, an empty vessel (unless it has traffic).

I don't think the general public has any idea of the true value of domains.

You guys that do this for a living... I honestly don't know how you deal with all the stupid out there.

Of course not, domainers have a hard enough time valuing things themselves. See point one above. These people probably aren't stupid they just aren't involved in this industry, you can't blame the customer for not buying. The options are either try to convince them it is worth more or wait for someone else.

 

[Alex P]

I don't get it. I have a very nice brandable name. It's pronounceable, someone's last name, an actual generic product name, worth some decent $$$$.

So the CEO of a mid sized company calls me and tries to strongarm me into giving it to him for nothing. I politely explain to him why it's worth much much more and that I actually have development plans for it(I do). The guy all but tells me to f-off and that I'm lucky he offered $100.

So this same fool then contacts me through Sedo a couple days later pretending to be someone different. I again politely explain to him why his $100 offer is a bit low (I paid high $$$ for it) and extend to him what I think is a fair offer for both of us (I really need a new laptop otherwise I wouldn't have considered selling). He lowers his bid and tells me that I'm basically a thief. I cancel negotiations.

WTF is wrong with people! So they'll pay thousands of dollars for a radio or tv spot that lasts seconds without a 2nd thought, but nothing for a domain name that will REPRESENT their business and last forever!?

I don't think the general public has any idea of the true value of domains.

You guys that do this for a living... I honestly don't know how you deal with all the stupid out there.

People just don't understand especially since when they think they can get any domain they want for $10 at somewhere like godaddy and then get confused at why your selling it for much more. Just lack of understanding, like I don't understand why footballers get paid millions

 

[SiberForum]

If I pay attention to such kind letters I would not have any time for my work.

 

[Spade]

Some people have a sense of entitlement. They have an idea with this great name they just thought of. They then realize someone else has the domain and its for sale. They ask how much or give an offer they think is reasonable. It never occurs to them that someone else may want the domain name for another website. They are upset and feel like someone is extorting them, never really bothering to use logic instead of emotions.

You gotta just let these people walk away, sometimes, when they are settled down, they come back to the table for real and present a reasonable offer.

 

[Alex P]

Some people have a sense of entitlement. They have an idea with this great name they just thought of. They then realize someone else has the domain and its for sale. They ask how much or give an offer they think is reasonable. It never occurs to them that someone else may want the domain name for another website. They are upset and feel like someone is extorting them, never really bothering to use logic instead of emotions.

You gotta just let these people walk away, sometimes, when they are settled down, they come back to the table for real and present a reasonable offer.

Nice way to think of it :]

 

[mwzd]

A radio or tv spot likely means definite customers.

Common misconception, one perpetuated by traditional media outlets.

a domain is probably one of many choices for them, an empty vessel (unless it has traffic).

Dollar for dollar a good domain is usually a better marketing expense than most marketing initiatives.

Most 'traditional' marketing executives either don't know that or don't want to know it.

The options are either try to convince them it is worth more or wait for someone else.

I don't really have time for evangelism, either you get it, or you don't.

If we agree on a price, you have a deal.

If I have to 'convince' you, it's not worth my time.

 

[mhdoc]

Common misconception, one perpetuated by traditional media outlets.

Dollar for dollar a good domain is usually a better marketing expense than most marketing initiatives.

Most 'traditional' marketing executives either don't know that or don't want to know it.

Very true. I do a website for a very successful Realtor in a very small town. Her daughter (who is much more open about things) said recently that "Mom spends twice as much on newspaper ads that brought in NO customers, as she does on the website, which we know brought in several."

Made me think I should raise my rates

 

[larryharlow]

One day they will realize buying a good domain name is better than most traditional marketing strategies.

But still, TV is better

 

[Sparhawke]

Common misconception, one perpetuated by traditional media outlets.


Dollar for dollar a good domain is usually a better marketing expense than most marketing initiatives.

Most 'traditional' marketing executives either don't know that or don't want to know it.


I don't really have time for evangelism, either you get it, or you don't.

If we agree on a price, you have a deal.

If I have to 'convince' you, it's not worth my time.

I agree with this completely.

Someone in the business of widgets should be able to recognise the strength of a commercial domain that tells everyone it is all about yellow widgets without me having to sit down and explain step by step their business.

They either get it, or they don't and there are plenty of other people who will buy the domain so I don't have to start wasting my time.

I want to be in business with people who at least have an idea what 1000+ people looking for their services would be worth, not someone who expects me to hand over MY property because they are having a hissy fit.

 

[hambling]

I agree with this completely.

Someone in the business of widgets should be able to recognise the strength of a commercial domain that tells everyone it is all about yellow widgets without me having to sit down and explain step by step their business.

They either get it, or they don't and there are plenty of other people who will buy the domain so I don't have to start wasting my time.

I want to be in business with people who at least have an idea what 1000+ people looking for their services would be worth, not someone who expects me to hand over MY property because they are having a hissy fit.

But remember, MOST END USERS are NOT in the business of domains. A little educational instruction is needed in ANY type of sales. Just like the newspaper ad sales rep has to educate a potential customer about why that 1/2 page ad costs $4,000, I think we owe it to potential end user customers to explain why MegaWidgets.com is worth our asking price. They are experts in Widgets not domain names.

Now dealing with other domainers, I agree, it is a negotiate and we come to a deal or part company.

 

[SlimPickins]

i am not an expert, and certainly do not do this for a living (yet), but in my opinion it comes down to whether they NEED the domain, as in it defines their product/service perfectly (obviously without being a TM issue), gives them a significant marketing advantage over competitors using the exact same term and/or is a domain that they fully hope to/intend to rebrand around (or at least make into THE company website)..... or they just WANT the domain to protect/improve their traffic through URL redirects to their current site.

2 of my modest but best sales to date were actually to endusers that didn't "need" or move their website to the purchased domain but just used as redirects (at least so far). Had I insisted on a higher price they would of most certainly walked since they, as I saw later, did not "need" it after all.... but, despite being satisfied with the sale price, I was nonetheless a bit disappointed that it wasn't a case of haggling with someone that paid an agreeable price for a domain that they turned around and happily put to an even better use.

Your situation may be quite different, but for me at least it comes down to accepting that although I can be aware of, and market based upon, the "want" (or or perhaps "benefit of use" is more accurate) factor for multiple possible/eventual buyers, and can set my price expectations accordingly, only the interested buyer that contacts me (or replies to my solicitation) can determine the price they are willing to pay based on their "need" factor for the domain...... [/ramble]

 

[DU]

WTF is wrong with people! So they'll pay thousands of dollars for a radio or tv spot that lasts seconds without a 2nd thought, but nothing for a domain name that will REPRESENT their business and last forever!?

As far as he's concerned you are a cyber squatter sitting on something that he thinks he owns. He called you a thief.

But who's complaining more? Him for the fact that you won't sell it less or you because he won't spend what you think it's worth? If you really have plans to develop just go develop.

People complain about the cost of major surgery at $$$$$$ but won't spend 30 minutes a day exercising.

 

[bmugford]

But remember, MOST END USERS are NOT in the business of domains. A little educational instruction is needed in ANY type of sales. Just like the newspaper ad sales rep has to educate a potential customer about why that 1/2 page ad costs $4,000, I think we owe it to potential end user customers to explain why MegaWidgets.com is worth our asking price. They are experts in Widgets not domain names.

Now dealing with other domainers, I agree, it is a negotiate and we come to a deal or part company.

When someone calls you a thief, squatter, con artist, etc. there is not really anywhere to go from there other than to ignore them.

Brad

 

[Sparhawke]

But remember, MOST END USERS are NOT in the business of domains. A little educational instruction is needed in ANY type of sales. Just like the newspaper ad sales rep has to educate a potential customer about why that 1/2 page ad costs $4,000, I think we owe it to potential end user customers to explain why MegaWidgets.com is worth our asking price. They are experts in Widgets not domain names.

Now dealing with other domainers, I agree, it is a negotiate and we come to a deal or part company.

This may be true, but Brad took the words right out of my mouth.

He has been called a thief which makes education a complete waste of time.

When I go to a company I naturally state that 1000 or so people are looking for this service and they are looking for someone to supply...I also state the benefits of having this domain...

Once they start calling someone a leech they have shown their hand...

Surely anyone in the world can understand the benefits of having *FREE 1000 people/leads per month to show their product to regardless of what medium it comes to?

*Once they have paid the domain fee and covered it

 

[hambling]

I agree when they get to the point of name calling (Thief, Sqatter, etc) it's time to cut the line and move on.

My post was more in responce to Sarhawke's statement that "They either get it, or they don't" I just think it is good business to educate those who don't "Get It". If they don't want to be educated that is another story. I mean, you can't learn 'em nothin if they don't want to be teached.

 

[DubDubDubDot]

Very true. I do a website for a very successful Realtor in a very small town. Her daughter (who is much more open about things) said recently that "Mom spends twice as much on newspaper ads that brought in NO customers, as she does on the website, which we know brought in several."

Put a stop to the newspaper ads and watch what happens. It won't be pretty.

There is no doubt what you could call a billboard effect here. The yard signs and newspaper ads are not soliciting an immediate response; rather at another time people who have become familiar with her name are looking her up online when they need her.

Her choice of a domain probably hasn't led to a single new client.

 

[snoop]

Common misconception, one perpetuated by traditional media outlets.

Actual advertising means ears and eyeballs. That is different to buying just a domain (unless it had traffic). Buying advertising on tv or radio is comparable to buying advertising online.

Dollar for dollar a good domain is usually a better marketing expense than most marketing initiatives.

What do you mean by a good domain and what do you base your opinion on other than the fact that you like the rest of us have a vested interest in spreading this concept?