The value of a domain is related to the PURPOSE of that domain. Purposes are specific. The key to value is the SPECIFIC PURPOSE!
Purpose comes with a value. So when I interview a prospect, it's about purpose. If their purpose is to make no money, my purpose is to run! If their purpose is to make $1000/month, my purpose is not to engage. That's why it is ALL about the conversation and not the price. Price is a LOSER!!!!
They have a purpose, I have a purpose. Mine is extracting maximum value and my value is directly related to their purpose. If I have a square block in Manhattan, I can sell it to a guy that wants to put a house there with a large garden. I could sell it to a guy that wants to open up a parking lot, but that said, I am waiting and looking for a guy that has the purpose of building a skyscraper. The land did not change, the only thing that changed was the purpose. The purpose is how you get to value. I am looking for folks with BIG and PROFITABLE purposes. Others, NEED NOT APPLY!! I am NOT compelled to answer or negotiate with anyone other than the PURPOSE I am looking for. I DON'T SELL!!
I don't sell domains!!!! I INTERVIEW potential suitors to see if their PURPOSE has high financial merit. PERIOD!! I don't sell. I have to be sold! That's a HUGE difference in mental approach. It's why I get the prices I do. I look at it and see it much differently than shadow and shiny object chasers.
Buy crap, get crap! Chasing purpose where there is none is a recipe to go BROKE!!
Stop selling domains and look for partners with purpose! Need, Want, Desire, Value, PURPOSE!
Have a GREAT Day!
I have a detailed contact form on my website which specifically asks for end user information. When I get a “Hey is the domain for sale” email I simply respond with a link to my contact form.
I mentioned this a couple of times on forum sites and was roasted for mentioning it.
So funny thing is I got a 1k offer on a domain. I stated I do not do business without the form filled out.
Understanding who I was dealing with made me decide what to ask for the domain and in this case it ended up being an LLC company with a substantial budget.
Great article Rick and great point @MapleDots
We recently updated or contact form to include a message field.
Buyer message content could be just the info needed to start the purpose conversation.
A Well thought out and articulated post.
Rick, this is a timely and genius approach.
Perfect use for your JointVentures.com
and our JVdeals.
“If you’ve got the Plan…We’ve got the Brand”
This post is bristling with (Grounded Creative SIZZLE). Rick Schwartz you are a Master Experiential Teacher. We expect this will move the needle or drive the Markets upwards. JAS
Gratefully, Jeff Schneider (CONTACT GROUP)
This is one of the most insightful, valuable information on how to properly sell a domain name, trading or flipping domains for cash is one thing, finding the best prospect to build profitable businesses around domains is key.
Thanks for sharing your thoughts and mindset Rick!
When I’m buying, the LAST thing on earth I ever want to do as an end user buyer is tell the seller or his/her broker my “trade secrets” about what I plan to do with it, want to do with it, and how one could use it well in ways they might and probably don’t even know a thing about. That’s like showing your cards in poker or worse. So while you’ve been fortunate enough to do what you’ve done with the kind of domains that you’ve had, others should still consider the idea of just “selling” based on a truly well informed perspective about highest and best use and real potential end user value (not based on “domainer think,” which frequently undervalues domains rather grossly), unless they want to spend their lives possibly never selling at all. I dealt with that very insistent request as a “suitor” shortly before the end of the year, and it was a deal breaker for me. So while that approach certainly and obviously works well some of the time, if people do it all of the time, even for truly great domains, they may wind up dying long before any value is realized from their holdings. I’ll also bet that while such deals may and I don’t doubt do result in higher realized value some of the time, just negotiating a price may really result in higher value after all than some carefully crafted, complex and super-well-informed-about-the-buyer deal too.
Then you will never have a life-chainging sale. You will be relegated to sell all your domains and walk away with a TINY fraction of the value. Then what?
It’s the difference between just being a lifetime schlepper and having life-changing results. In your hands my domains would sell for a penny on the dollar. NO THANKS!!
Selling volume on unique assets is foolish imho. But it stems from not understanding and realizing value.
Most domainers collect domains that they have to drop. That means they are worth less than $8. That’s why it’s a waste to deal with low value and sub-mediore domains. There is little opportunity there. Liabilities, not assets.
None of what I say applies to Pigeon Shit domains. If they can’t build THEIR DREAM on YOUR DOMAIN, none of this counts. When you focus on real quality, you won’t negotiate with low-ball offers.
When you hunt for whales, it’s just a different game. It’s not Fly Fishing.
Have fun staying poor John!
I agree. There is a bit of exaggeration from the side of some domainers. They want to get the max for their domains in exchange for a future promise !! A future revenue that may and may not happen and they have no hand in creating it !!
This is a recipe that will break the neck of any start-up in the first year. On another hand, big companies are so sophisticated that they can easily develop the next best alternative for way less cost ..!!
What can be created with a single word domain, can be easily done with two-word or brandable domains … ex. FACEBOOK !!
Excellent posts, learn the fine details of buying, selling, sales and negotiations .
The fine arts of Domain Industry.
Why waste time on those nameCON conferences, SOS–same old Sheet and same ideas and BS speakers and wannabaes.
Nice post! Purpose is very important for everyone.
No one articulates the art, science and strategy of selling high value domain names as well as Rick does.
Worth a post, the ridiculousness price paid for Arizona.com (350,000 USD)
The price of a two bedroom residential property.
DomainKing’s 2-Minute Guide to Domain Name Valuations!! | The Rick Schwartz Domain Name and Traffic Blog: RicksBlog.com - Home of The Domain King®
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