I just read a great post at dotweekly.com about feeling like an “end user” when buying a domain name.
I was typing out a comment and it accidentally turned into a book, so I figured I’d post my “reply” here:
(I wonder if longwindedcommenter.com is registered)
I’m actually going through that End User love and feeling right now as well.
Although I sell some domain names, I also like to develop them. Seeing things from an end user perspective can be very enlightening (and sometimes frustrating :)
For example, as a domainer, with a “good” domain listed on Sedo, I hate it when I receive lowball offers. My usually reply is an offer that adds a few zeros to their first offer. Although I shouldn’t, I think I sometimes feel insulted by the low offers, as if the person is trying to get something for nothing. But when I think about it, who doesn’t want the lowest price on the domain name they want to buy.
Yesterday, as I was domain Christmas shopping for myself, I saw a good domain on Sedo that sort of fit my criteria for a site I wanted to develop. This domain probably would sell at a decent “wholesale” price if it was listed on a domainer forum like NamePros or DNForum, but I think because I was bidding through Sedo, the domain owner may have been worried that I might be some big fish corporation trying to throw a lowball offer, so they did what would I have done, and added like 3 zeros to my offer (which made me promptly end the negotiations :) Thinking about it from their side, what seller doesn’t want to get the most for what their trying to sell.
Sometimes, I think not knowing anything about the buyer like in a Sedo setting can really hinder negotiations. Sellers may feel that if the bid is coming through Sedo, they may have found that “dream” end user with big pockets instead of dealing with a real person with realistic budget and plans for the domain.
At the same time, knowing too much about the buyer can also lead to unrealistic expectations of domain value. Most domainers will do all types of Sherlock Holmes worthy research when they receive an unsolicited email inquiry about one of their domain names. If they find that the buyer is really a rep from MegaCorp Inc, listed on the Fortunate 500 list, this can artificially inflate the sellers value of the domain name. This overvaluation based on the buyer can cost domainers $1000’s of dollars. If they are thinking “miiiiillions” and the buyer is thinking a strong 5 figures, domainers could pass up a realistic offer from one of the best buyers they could ask for. Just because the company makes billions, doesn’t mean they will spend millions on your domain name. Some will, most won’t.
For me, as a domainer that leans slightly towards the end user side because I like to develop websites, that’s one reason why I love the domainer forums. You can find some nice hidden gems. When a domainer only sees type in earnings, extension strength, or resell value, a developer can see long term potential earnings value. I don’t know if that would make me “domainer curious” or “end user curious”?
As a domainer, how do you swing? What have you learned from putting on the “other side’s” shoes?