Best Way To Sell A Domain For A High Price?

20 replies
I've heard of end sales and selling domains to businesses. Many out there say this is the best way to get the large sales. This is due to the fact they have a budget and have a profitable business that could benefit from the domain. I was wondering though.
Is this the best way to make good money off a domain, and if so how should I go about it?
#domain #high #price #sell #sell domains high
  • Profile picture of the author robestrong
    The first and most important thing you need to do is switch the sense of urgency. In other words a lot of times domain vendors are in a bad spot because they don't want to lose potential customers, but at the same time they want to get ripped off or worse middle-manned. This puts them in a weak bargaining place, especially as domains have no fixed value.

    To switch this you need to create a sense of urgency for the customer. One way to do this is by saying something like:

    "Hi [Customer Name],

    Thanks for your interest. The price of [domain.com] is $X. I have two other interested parties as well. So if you want to buy it, get it while it's at this price; I'm planning on putting it on auction this weekend starting at $X+100, so if you want to bid for it that option will also be open starting this weekend.

    Best Regards,

    [Your Name]"

    That's how I'd do it. This way you get them to buy it as soon as possible if they are planning to buy it at all, without forcing them so much you scare them away.
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    • Profile picture of the author tedwood
      Originally Posted by robestrong View Post

      The first and most important thing you need to do is switch the sense of urgency. In other words a lot of times domain vendors are in a bad spot because they don't want to lose potential customers, but at the same time they want to get ripped off or worse middle-manned. This puts them in a weak bargaining place, especially as domains have no fixed value.

      To switch this you need to create a sense of urgency for the customer. One way to do this is by saying something like:

      "Hi [Customer Name],

      Thanks for your interest. The price of [domain.com] is . I have two other interested parties as well. So if you want to buy it, get it while it's at this price; I'm planning on putting it on auction this weekend starting at +100, so if you want to bid for it that option will also be open starting this weekend.

      Best Regards,

      [Your Name]"

      That's how I'd do it. This way you get them to buy it as soon as possible if they are planning to buy it at all, without forcing them so much you scare them away.
      Sounds feasible. Would you recommend I try and get my domains valued before asking for any money?

      I have a vague idea of their worth but some vary greatly.
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    • Profile picture of the author Janice Sperry
      Originally Posted by robestrong View Post


      To switch this you need to create a sense of urgency for the customer. One way to do this is by saying something like:

      "Hi [Customer Name],

      Thanks for your interest. The price of [domain.com] is . I have two other interested parties as well. So if you want to buy it, get it while it's at this price; I'm planning on putting it on auction this weekend starting at +100, so if you want to bid for it that option will also be open starting this weekend.

      Best Regards,

      [Your Name]"
      Except if that is not true you are being dishonest. Not a great way to run a business.
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      • Profile picture of the author Gene Pimentel
        Originally Posted by Janice Sperry View Post

        Except if that is not true you are being dishonest. Not a great way to run a business.
        Not only is it dishonest, but business people are not idiots. You will lose most of your potential prospects immediately by trying to use this tactic.

        If it IS true, you'd better provide supporting evidence of this up front (link to an action site, where there are bids, for example).
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    • Profile picture of the author Jon Patrick
      Originally Posted by robestrong View Post

      The first and most important thing you need to do is switch the sense of urgency. In other words a lot of times domain vendors are in a bad spot because they don't want to lose potential customers, but at the same time they want to get ripped off or worse middle-manned. This puts them in a weak bargaining place, especially as domains have no fixed value.

      To switch this you need to create a sense of urgency for the customer. One way to do this is by saying something like:

      "Hi [Customer Name],

      Thanks for your interest. The price of [domain.com] is . I have two other interested parties as well. So if you want to buy it, get it while it's at this price; I'm planning on putting it on auction this weekend starting at +100, so if you want to bid for it that option will also be open starting this weekend.

      Best Regards,

      [Your Name]"

      That's how I'd do it. This way you get them to buy it as soon as possible if they are planning to buy it at all, without forcing them so much you scare them away.
      While I get what you're doing here, this would basically be fraud. I don't suggest taking this approach.
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  • Profile picture of the author Gene Pimentel
    The best way to sell a domain for a high price is to begin with a domain that has high perceived value. Anybody can register mediocre domains all day long. Your domain has to have an obvious appeal, and stand out from the crowd. It also has to have a clear benefit to the buyer. You've got to do the legwork and research to find an appropriate buyer, then show them the benefits of owning your domain name.
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    • Profile picture of the author MoneyMonster
      Originally Posted by Gene Pimentel View Post

      The best way to sell a domain for a high price is to begin with a domain that has high perceived value. Anybody can register mediocre domains all day long. Your domain has to have an obvious appeal, and stand out from the crowd. It also has to have a clear benefit to the buyer. You've got to do the legwork and research to find an appropriate buyer, then show them the benefits of owning your domain name.
      Sir you have my greatest Respect Gene ... you truely are an inspiration and you are not just too honest and straight to the point..Its been awful long since i had eureka moment, and after reading some of your stuff i found yesterday i had a COLOSSAL EUREKA ...now i cant sleep cos my mind cannot just phantom to amount of cash i am going to start raking in all thanks to you ..I have signedup for all your programs i will always be ready to participate in whatever u've got to offer..U'll be hearing from me soon...Thanks Once Again..$$$
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  • Profile picture of the author FreshPLR
    I have to agree with Janice on this one. The ethical way forward is to offer a good product and not make untrue claims or promise too much which you will then not be able to deliver.
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  • Profile picture of the author Yulia from DNP
    Well, i think i will agree with Gene Pimentel here.
    If you are just looking for a way to make money of regular domains, then you will have to put some effort into this. Like reserach for comapnies or upcoming buisnese with a domain name in their company name or something like that. Probably, they already purchased a good domain for themselves so you will have to offer something original here.
    I think you have two options here.
    1. try to find GOOD and short domains.
    2. you can find small local business and purchase domains with the name of the business and offer them to buy the domain and maybe build a site to expend their business. But im not sure that's such a great idea cause you really should offer seo promotion and build a site , this way you will get good money .But just to sell the domain to a company that doesn't has a site.. well. You think about it yourself, i just shared my thoughts here : )
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  • Profile picture of the author neopolus
    Ted,

    I would recommend, even before you try to sell the domain, to have it valuated before you make a letter even offering it - usually, the companies or people that buy domains, they know the domain game inside an out, they make a living out of it, and they will smell a bluff a mile away, - the best process ( I think) is have it appraised, I know of a very good and accurate tool to do so, go to valuate.com add the domain and have an idea of value , then set your expectations and go from there - REMEMBER domains is a very volatile market, what is hot now, it may not be so hot today - it is an industry where charlatans and speculators will have a field day with you if you let them.

    On the other hand, I can tell you that companies that have a very similar domain to what you may have to offer, in a very little number they may buy it from you, or in the worst case scenario - if you offer it and that specific term or word is trademarked - they most likely take the domain away from you.

    Hope this may help you in taking the best route for your sale, and I hope is very successful !

    Neo -
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  • Profile picture of the author tedwood
    Okay. I've just come back to this thread as I've been quite busy. There are three major steps that I've noted for selling a domain name. My domain name does have appeal and does have a major keyword in it.

    The three steps I'm going to take are:
    1) Appraise the domain
    2) Put the domain for sale on Sedo
    3) Contact web masters in the paid and search listings for the keyword

    I've seen a lot of good sales on the Sedo marketplace. Is this from domain owners directing the end users to the listing and getting them to bid or is it just from people in the auctions?

    Also does anyone have a good idea on how to get around the 60 day domain rule where you cannot transfer a domain for 60 days?

    Thanks.
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    • Profile picture of the author Richard Tunnah
      Originally Posted by tedwood View Post

      Okay. I've just come back to this thread as I've been quite busy. There are three major steps that I've noted for selling a domain name. My domain name does have appeal and does have a major keyword in it.

      The three steps I'm going to take are:
      1) Appraise the domain
      2) Put the domain for sale on Sedo
      3) Contact web masters in the paid and search listings for the keyword

      I've seen a lot of good sales on the Sedo marketplace. Is this from domain owners directing the end users to the listing and getting them to bid or is it just from people in the auctions?

      Also does anyone have a good idea on how to get around the 60 day domain rule where you cannot transfer a domain for 60 days?

      Thanks.
      I would go against having it appraised. Why? As a domain as no real value until you have a buyer willing to pay x amount for it. You can research yourself what similar domains sold for by visiting dn-journal.com and sites like sedo.
      As for selling on sedo. This is a great place for selling domains but you'll need to get people to your auction and the buyers on sedo are not end buyers but mainly domaineers looking to turn a profit themselves. So easy to list but maybe no easy to sell and certainly you won't get the best price.
      Getting around the 60 day rule is easy. Get any buyer to register a free account with the same domain registrar as the domain is registered with and then you can just 'push' the domain to their account.

      Rich
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  • Profile picture of the author Studio13
    I've sold about 1/2 dozen websites for over $10,000 — one in particular sold for $96,000.

    And I have a couple of pointers.

    The first tip is the phrase, perceived value.

    A website getting 10,000 unique visitors per month has a high amount of perceived value. It's only surface deep however. Because those 10,000 unique visitors may be arriving at the website to download free games, or some other non-monetized action.

    Second on perceived value are the words you use to describe your website, traffic, profit margins, assets etc. Saying you own the rights to proprietary intellectual property sounds more valuable than unique content. Use a powerful business minded-vocabulary to describe your website.

    Third on perceived value is the audience. I like to sell on websites where the standard price for a site is $1000 - $1,000,0000. In this way, a $25,000 site stands out as reasonable — whereas on flippa it seems extreme and is subject to public criticism and little-minded feedback.

    Fourth on perceived value are symbols. Throw down $200 and get ™ filed. Spent $2,000 and get a patent pending. Things of this nature add extreme amounts of perceived value to your product/service and also give the impression that your business has "legs" and isn't fly-by-night churn-and-burn type of operation.

    Finally, on perceived value — hire a broker from new york or new jersey to help you sell your site. Get him to put energy into your sell. Of course by doing so, he gets a commission, but a broker adds a high amount of perceived value to your site.


    ...If you found this tips valuable, I may go on to add more.
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    • Profile picture of the author SUPER Louie
      Originally Posted by Studio13 View Post

      I've sold about 1/2 dozen websites for over $10,000 -- one in particular sold for $96,000.

      And I have a couple of pointers.

      The first tip is the phrase, perceived value.

      A website getting 10,000 unique visitors per month has a high amount of perceived value. It's only surface deep however. Because those 10,000 unique visitors may be arriving at the website to download free games, or some other non-monetized action.

      Second on perceived value are the words you use to describe your website, traffic, profit margins, assets etc. Saying you own the rights to proprietary intellectual property sounds more valuable than unique content. Use a powerful business minded-vocabulary to describe your website.

      Third on perceived value is the audience. I like to sell on websites where the standard price for a site is $1000 - $1,000,0000. In this way, a $25,000 site stands out as reasonable -- whereas on flippa it seems extreme and is subject to public criticism and little-minded feedback.

      Fourth on perceived value are symbols. Throw down $200 and get ™ filed. Spent $2,000 and get a patent pending. Things of this nature add extreme amounts of perceived value to your product/service and also give the impression that your business has "legs" and isn't fly-by-night churn-and-burn type of operation.

      Finally, on perceived value -- hire a broker from new york or new jersey to help you sell your site. Get him to put energy into your sell. Of course by doing so, he gets a commission, but a broker adds a high amount of perceived value to your site.


      ...If you found this tips valuable, I may go on to add more.
      Very useful information. I have no clue or anything with regards to selling domains.

      Perhaps you can provide more pointers as valuable as this
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    • Profile picture of the author tedwood
      Originally Posted by Studio13 View Post

      I've sold about 1/2 dozen websites for over $10,000 -- one in particular sold for $96,000.

      And I have a couple of pointers.

      The first tip is the phrase, perceived value.

      A website getting 10,000 unique visitors per month has a high amount of perceived value. It's only surface deep however. Because those 10,000 unique visitors may be arriving at the website to download free games, or some other non-monetized action.

      Second on perceived value are the words you use to describe your website, traffic, profit margins, assets etc. Saying you own the rights to proprietary intellectual property sounds more valuable than unique content. Use a powerful business minded-vocabulary to describe your website.

      Third on perceived value is the audience. I like to sell on websites where the standard price for a site is $1000 - $1,000,0000. In this way, a $25,000 site stands out as reasonable -- whereas on flippa it seems extreme and is subject to public criticism and little-minded feedback.

      Fourth on perceived value are symbols. Throw down $200 and get ™ filed. Spent $2,000 and get a patent pending. Things of this nature add extreme amounts of perceived value to your product/service and also give the impression that your business has "legs" and isn't fly-by-night churn-and-burn type of operation.

      Finally, on perceived value -- hire a broker from new york or new jersey to help you sell your site. Get him to put energy into your sell. Of course by doing so, he gets a commission, but a broker adds a high amount of perceived value to your site.


      ...If you found this tips valuable, I may go on to add more.
      Wow some great tips here, made me think a little deeper than the surface. I've never thought of hiring a broker, I'm guessing he would do a better sell than me to the end users. Studio13 If you have any more tips I would be extremely grateful.
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      • Profile picture of the author Studio13
        Awesome — glad you found those tips helpful.

        Here's another one:

        Numbers — big ones are better, and it's all how you say it. We are genetically coded to regard SIZE as something of safety. SIZE also denotes authority and authority is one of those things that add perceived value — which is what this is all about right?

        Few examples you can customize for your auction ad:

        • Ranked in top (3) on the world's #1 search engine (google) for highly competitive keywords. We are positioned at the TOP of 1,156,039 search results, we rank #1 for premium dog food — TOP of 2,333,259 search results, we rank #2 for all natural dog food — etc. Don't do your buyers the favor of telling them all natural dog food only gets 30 searches a month.

        • xyz.com has 428 indexed pages on the search engines and 78% of all website traffic — yes, over 900,000 hits a month — (remember hits aren't unique visitors, just server requests) are 100% expense free — this traffic is all profit.

        And so on. Showing screen shots of what appears to be overwhelming lists (literally running off the screen) of orders, prospect and lead sign ups, etc. Think about the principle in hypnosis where you attempt to make your subject trance-out by overloading his/her senses with information input. That's what your going for — displaying numbers so large they are literally incomprehensible.

        Once they've been overloaded with large numbers, give them an "easy" way out like a call to actions which promises to make everything crystal clear — ie, sign a non-disclosure (puts you in the position of authority) — or call you between a certain timeframe, ie, 9am-1pm PST with inquiries. Set's up the paradigm that your busy, and while you would like to sell this site, your not going to wait on them hand and foot to get it done.

        Finally, when you do get a prospect — determine if they are type A or type B right away.

        If they are type A, and have the entrepreneurial alpha type personality, setup a true or false (doesn't matter) bidding paradign to elicit their competitive nature. Tell your prospect you'd really like to let it go for the asking price, but someone's already made an offer and your holding for a week to ten days to see if a better offer comes along. Here's your opportunity to get top dollar, by waiting for THEM to make a higher offer. Be patient, remember it's a valuable virtue.

        If they are type B, and are just buying a website because they were told investing their money was a good thing to do, or whatever, take the lead and put them through a "interview" process. Ask them questions that "qaulify" or "disqualify" them from buying YOUR website. For example, "Is this your first website? (make them secure or insecure about their experience) Do you know anything about search engine marketing? (pretend you know more) Can you handle a rush of orders should I tell you about my super secret technique that I use only when I need extra money? (get their head spinning around the idea of a cash-overflow). Etc...

        Remember — this is all about getting top dollar for your sale. When your type B person comes along, offer say 30-90 days support after the sale if they're willing to pay a little more. Offer to hold their hand, and maybe do some of the hard stuff for them until they feel secure enough to do it themselves. That's your opportunity to inflate the price somewhat. Make them insecure, (identify the problem) and offer the solution (your help) for a couple extra bucks. I mean, if they are SERIOUS about doing this, they need to do it right — right?

        These things combined should get you enough prospects to engender the opportunity for the closing call.

        The final steps is setting up escrow, or simply bill of sale contract you ask them to sign/scan/fax back to you.

        Just remember, at all times, this is YOUR sale, the buyer is never in control. They abide by your terms — because this is your game — your domain — and if anyone tries to grab control of negotiations and short change you (deflate the perceived value you've worked so hard to build up and maintain) politely tell them they'd be better off pursuing another opportunity and hang up.

        Good luck.
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    • Profile picture of the author MoneyMonster
      Originally Posted by Studio13 View Post

      I've sold about 1/2 dozen websites for over $10,000 -- one in particular sold for $96,000.

      And I have a couple of pointers.

      The first tip is the phrase, perceived value.

      A website getting 10,000 unique visitors per month has a high amount of perceived value. It's only surface deep however. Because those 10,000 unique visitors may be arriving at the website to download free games, or some other non-monetized action.

      Second on perceived value are the words you use to describe your website, traffic, profit margins, assets etc. Saying you own the rights to proprietary intellectual property sounds more valuable than unique content. Use a powerful business minded-vocabulary to describe your website.

      Third on perceived value is the audience. I like to sell on websites where the standard price for a site is $1000 - $1,000,0000. In this way, a $25,000 site stands out as reasonable -- whereas on flippa it seems extreme and is subject to public criticism and little-minded feedback.

      Fourth on perceived value are symbols. Throw down $200 and get ™ filed. Spent $2,000 and get a patent pending. Things of this nature add extreme amounts of perceived value to your product/service and also give the impression that your business has "legs" and isn't fly-by-night churn-and-burn type of operation.

      Finally, on perceived value -- hire a broker from new york or new jersey to help you sell your site. Get him to put energy into your sell. Of course by doing so, he gets a commission, but a broker adds a high amount of perceived value to your site.


      ...If you found this tips valuable, I may go on to add more.
      One word ""YOU ARE SMART""...i know guys like you, you are the type that turns any any idea in to thousands if not millions of dollars if you could, I like people with brains like you on my moneymaking team..

      You are 100% right about PERCEIVED VALUE, it is very possible for you to register a domain tonight and sell it for $5000 to $9000 next week simply because the domain name is so good that merely looking at it already sells itself, before the buyer even looks at how much you are asking for the domain , he would already have started making up some ballpoint figure in his head.
      I know its incredibly hard to freshly register a one word domain now cos you can bet a 98% chance that it's already been taken, but there are some very very very rare and unique two word domain that are still waiting to registered.I am talking about two word domains that are so good that your buy would be ready to pay thousands for it despite the fact that he knows how fresh out of the oven the domain name is. The domain might just be awesomely brandable, contains some highly priced keywords , and offcourse also sits on preferably on a .com TLD . At the end of the day the truth is that a domain value is determined by the Buyer because they are the one buying for a reason and they will use their money to get what they want whatever the cost
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  • Profile picture of the author Domainate
    Gene is right in that it starts with having a domain that can sell for a lot. Not every domain can, and most of the domains people outside the domain business register are not sellable at all.

    The second thing is to understand that if you want to sell the domain for a lot, it probably won't happen tomorrow or next week. Most domain sales to end-users are when end-users themselves look for the domain. You can sometimes get sales by approaching end-users, but it's much more rare of an occurrence.

    The third thing is to actually ask for a high amount. It seems obvious, but sometimes people wonder why they're not making big sales when they are constantly posting the domain for sale for a low amount or whatnot. Once you attach a price on a domain, you're rarely ever going to get more than that. That said, if you ask a million dollars for an unsellable domain, you look like an idiot, so there's a middle ground in there somewhere.

    Ultimately it all starts with having good quality domains to begin with - focus on developing a bigger understanding of domain value before you ever think about trying to sell domains. Those that don't end up essentially throwing their money away.
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    • studio13's talking more about how to sell a site than a domain name. The gulf between the two can be pretty wide, for some of the reasons he enumerates.

      The contact-the potential-webmasters approach didn't work for me when I was trying to sell my domain name. There were 25-30 potential buyers but the problem was none of them realized yet they needed my domain. And until the money people in those organizations were onboard, a sale wasn't in the cards.

      I did end up selling it last year to someone who did a little research and got past the private registration, which was a clue about their motivation. Nice high four-figure sale, eventually. It gave me enough capital to pursue some opportunities that have turned out well.

      fLufF
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