Optimizing Value Of An End User Domain Name Purchase

When selling a domain name to an end user you need to approach the valuation much differently than when selling at wholesale prices between domain investors. Our domain properties are key real estate properties and need to be treated as such when working with a possible end user.

As domain investors we tend to have domains that span many industries and as such do not necessarily think about the true value our names may have to the business acquiring our domain. When the real estate industry is in good shape commercial real estate agents can look at getting the top price for their property, we are no different with our "domain" property.

Earlier this week I had a contact from an end user looking to acquire one of my domains, it was a geo targeted .NET name in a hot tourist area in a very strong niche. So from the beginning I knew that there was solid value in the domain, but now it was time to evaluate what the true value was to the buyer.

First step was I noticed they indicated they wanted to buy my "website", this is something I have been noticing from buyers that have came from my minisites, they want to buy my website, not my domain name. This is key, they are viewing it as more than just a name, this adds value.

The other thing I noticed is that they person had their logo, title, etc in their email signature. This validated them as a company and what was really nice is I am familiar with their location and their business from visits to the area they are in. This also allows me to focus on speaking the value to their business since I know they are a real business and not just someone looking to buy a name on the cheap.

Before sending though I did some quick searches to determine if they were buying Google Adwords ads or if they were showing up in search results for the name they were looking to purchase. They were not...

After all of this I was able to set a price, although we all like to make the other side make the first move in many cases I find it more productive to set a price and negotiate from there. That is what I did in this case. The person is now taking the offer to the owners of the business (which is a nationwide firm).

Now, to make sure you get the most value it is time to start a bidding process, I went to Google once again to determine the Google Adwords customers targeting the related terms. I was able to determine the top companies that would be interested based on that. I was lucky enough to know the area and business they are in so that helped me focus on on several that I know are considered top players in their field. I then either sent emails or made phone calls to these businesses (asking for the Director of Marketing in most cases) to inform them that offers have been made for my "website" and I wanted to allow them the chance to bid on this property as well.

At this point negotiations are ongoing, but based on all of the above, and selling like a website instead of domain I have been able to increase the value and number of betters which increases the chance of success. Hope one of these tips helps you in some way.

UPDATE: Teendomainer also wrote a great post that you should read concerning selling to end users who have contacted you.