Approaching high-profile domain owners?

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I am taking DnP's advice full-time. And will start approaching the owners of all desirable domains.

I was just wondering what are your experiences, if any?
How much do you under-price your offer?

I was thinking of offering 1/10th of my appraisel.
For instance, in my mind "banners.com" is worth $20,000
Therefore, I would send an offer of $2,000

Any advice/suggestions?

 

personally I wouldn't underprice too much, as you may not hear back from them at all!

 

Maybe just ask if they would be interested in selling initially.

The follow up with an email asking for their price range if they say they are.

 

[DnPowerful]

$1000 speaks of both respect and understanding of the domain market.

I never offer less, unless the name is in the 'b' category.

$1k will inevitably bounce back the 'thank you for your interest, but no thanks' and the dialogue starts.

$500 on the other hand, mostly gets ignored.

You have to get past the palace gates, and respect along with an offering of your cred gets you much further than conniving. Most good domain owners have been bombarded, and are wary of bs-pushers. Previous buys/sales help immeasurably.

This sounds contradictory, but quickly squash any of the sellers who waste your time with "I'm not interested in selling." My experience is: EVERYBODY's looking to sell, it's just a matter of price.

 

[DnPowerful]

Always reply! Unless your name is an OBVIOUS target for WIPO (I'm talking generics here, not squatting).

Your note should just be: "Thank you for your offer. However, we are not interested in selling." People think that not replying means you will yield a higher price.

NOT SO!!!

If you don't reply, I think:

1. You're not interested in selling, which is always a lie, because if I gave you your fantasy number, you'd be selling, right.

2. You don't understand how the game really works and not what they teach you in domain selling 101...therefore, I will offer you LESS and just wait. If I want the name badly, I'm calling you on the phone anyway.

I have found, as a general rule, that adult sellers are usually a lethal combination of arrogance and unsophisticated, especially the better the name. Granted, they're bombarded with offers, but even later on in the process, they've decided that simply owning a good adult name means you as a buyer should be on your knees. Generics owners are much easier to deal with, generally.

People completely underestimate the importance of timely replies and professionalism. Don't want to sound like a sycophant, but safesys of this very forum was the model of professionalism on a recent sale. Initially turned me down, simply saying I was offering too little; then weeks later pointed me to an auction. All the way through he was very obliging...

The simple rule for me is: If you don't oblige me, you make less money off me in the long run, because you're a jerk. Relationship selling is the best way to make money. Not the only way, but the best way.

 

[mole]

Great post Very insightful and sensible.

 

[AMERICAR]

I liked DNPs new avatar the best.

 

Let seller makes the first move. If seller does not make a move, buyer does not need to make further move.

Regards,
Goh
I no nuffin.

 

[AMERICAR]

Goh is still a newbie .. only 392 to go .. ha

 

[mole]

Americar, don't tell me you want to compete with him to see who reaches 400 points :laugh:

 

From my experience, I think that the old haggling game works fine with middle range domains ($2k - $5k). Name your price at the max and prepare to hear back at half as much. Then raise it by half of the difference and so forth. You will close a deal rather quickly. I can't claim huge numbers myself - only 4 domains that sold in that range above - but the buyers were both corporate and individuals.

 

[David G]

Quote DNPowerful "Your note should just be: "Thank you for your offer. However, we are not interested in selling....."

Perhaps I am missing something as I don't understand why you would say that. Why in the world would that type of reply work if you are saying you have no interest in selling?

It's almost impossible to get a response even if there is an indication a sale is possible so I can't imagine any replies coming back after telling them you don't want to sell.