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?
Comments
It really helped me to read this, and I appreciate it immensely. Only days ago, I completed development of what I’m certain is a phenominal domain (StarMechanics.com and the singular StarMechanic.com). An extremely common phrase in the auto repair world. When I went to list it for $10K with a known domain e-newsletter, and paid the listing fee, the gentleman refused to list it. Saying, The domain has no metrics and that I would not get anywhere near the asking price. I was shocked! And I told him I was. This is a premium domain name, beautiful website, world-class logo, and a nationwide franchise branding opportunity no-brainer. And he told me that domainers won’t see something this obvious. Now from my perspective, $10K would really be a severely cheap price. And I picture seeing it become an instant success and kicking myself for selling a turnkey multi-million dollar brand for pennies. But then I thought, The economy is bad right now, so I’ll let it go for $10K.
But now I see from your post that when approaching domains, a dual mindset (domainer and end user) is needed, or you/we can miss extremely valuable properties because of tunnel vision.
Domainers are some of the sharpest people in business. We cannot sift for gold coins, and throw away the platinum ones we find because we’re only looking for gold. Kindest regarsd to all and Happy Holidays.
Damon
Hey Damon, thanks for sharing your example! Sometimes I’ve also found that you have to *prove* a great opportunity is really a great opportunity by developing a name yourself and *making it* worth something. Happy Holidays to you too!
Great post. By definition domainers see value and opportunity where others were slow too so it’s close to impossible not to feel a bit insulted by low-ball offers.
As long as your response (because you should always respond) isn’t tainted by your offense (don’t come off like a d!ck) I think it’s fine and healthy.
In the end I’d rather receive a low offer than no offer at all. At least it lets you know there is an strong interest in your domain if not a financially viable one(yet).
Good point, Jeremy. Great quote as well “In the end, I’d rather receive a low offer than no offer at all”. So true!
Yes, LongWindedCommenter.com is registered and for sale! Make offer. Use of Paypal or Escrow.com required.
Wow Ken, that’s pretty bold to register a domain name I mentioned as a funny aside in my post and try to sell it to me. I’m hoping that your offer was a joke that was just missing the smileys (even though you actually did register the domain today :) As a domainer myself, if I had any type of interest in the name, don’t you think I would have registered it myself before posting :)
Hope it works out for you somehow though. Who knows, it may actually be a hot name to someone in the future.
Damon,
The problem with your statement…
“This is a premium domain name, beautiful website, world-class logo, and a nationwide franchise branding opportunity no-brainer.”
…is that you are trying to get someone to pay for the FUTURE value that THEY would get if they put the hard work into creating a national franchise! As Richard Parker says in How To Buy A Business,
“Sellers and intermediaries will almost always paint a glorious picture of how you’re going to make tons of money, with all of the wonderful things you can do with the business in the future. While that sounds great, you cannot pay the former Seller for the upside you generate as a result of YOUR hard work.”
As for your domain, I think it is quite good as a “brandable” type of domain but I have to say that your logo is not really “world-class” at all.
Good luck with the sale though.
Domaineering is the web-based marketing business of acquiring and monetizing Internet domain names for their use specifically as an advertising medium rather than primarily speculating on domains as intellectual property investments for resale as in domaining where generating advertising revenue is considered more of a bonus while awaiting a sale. In essence, the domain names function as virtual Internet billboards with generic domain names being highly valued for their revenue generating potential derived from attracting Internet traffic hits. Revenue is earned as potential customers view pay per click ( PPC ) ads or the Internet traffic attracted may be redirected to another website. Hence, the domain name itself is the revenue generating asset conveying information beyond just functioning as a typical web address. As the value here is intrinsically in the domain name and not in a website’s products or services, these domains are “parked” and not intended to be developed into conventional websites. As with traditional advertising, domaineering is part art and part science. Often to be the most effective as an advertising tool, the domain names and their corresponding landing pages must be engineered or optimized to produce maximum revenue which may require considerable skill and keen knowledge of search engine optimization ( SEO ) practices, marketing psychology and an understanding of the target market audience. Domaineering generally utilizes a firm offering domain parking services to provide the sponsored “feed” of a word or phrase searched for thus creating a mini-directory populated largely by advertisers paying to promote their products and services under a relevant generic keyword domain. Occasionally content is added to develop a functional mini-website. Domaineers and some of those who advertise online using keywords believe domaineering provides a useful, legal and legitimate Internet marketing service while opponents of domaineering decry the practice as increasing the ubiquitous commercialization of the world wide web. Domaineering aka “domain advertising” is practiced by both large organizations which may have registered hundreds or even thousands of domains to individual entrepreneurial minded domaineers who may only own one or a few. The earliest known verifiable identification and defining of domaineering as a distinct Internet advertising practice is attributed to Canadian Professor William Lorenz.