The great domain name investor debate
Should you put a price on your domain name?
Hi, Chris Zuiker with media options. We help companies to and brands to acquire their raw unfiltered version of that brand online, their (.com) domain name for the lowest possible cost today.
And what am I talking about today is should you put a price on your domain name?
Many domain owners do not want to give a price for their domain name.
I see this as I’m reaching out for domain names, both on the acquisition side and on the sales with people coming to us looking to broker their domain name.
What happens in the scenario is that you’re reaching out on a domain name, and you give them a budget with where your client’s at and they come back and say, you know, we are not interested, we don’t want to sell it.
But they do want to sell it.
You can tell that they want to sell it, but your offers may be too low, or maybe they’re expecting an unrealistic amount for their domain name.
But here’s what happens, a lot of times they end up missing the sale and then loose more sales because they don’t give a target for that company to come back with.
I’ve had instances where we have started off at $100,000 and gone up to like $600,000 for an acquisition.
I’ve seen it where we start off $100,000 and can go to $150,000
There’s different scenarios, but you don’t know if a company is going to achieve the level that you want to them unless you put a price out there.
This is a very normal circumstance.
Most companies need to get approvals before they can go up in price.
If you don’t give them a price most startups will just give up.
In most companies, major purchases have to be approved thru the senior leadership or board of directors.
No management wants to keep going back and asking for approval
How can they keep asking for more money when nobody knows what it will take.
This can be a very embarrassing conversation.
So, most managers will just give up and continue building their brand on the domain name they have.
Pricing your domain name gives them something to consider.
This gives them a target and possibly helps them to find their ceiling.
What happens is that they might have been able to achieve that.
I don’t know.
I mean, every circumstance is different.
Every domain name is different, but you’ll never know if they could go higher because you didn’t put a price to your domain name.
One of the benefits that Media Options brings to the market is that we set market and realistic prices for the domain names that we broker.
We have a very robust valuation process that we go through for each domain name. We have about 30 different levers we use to price each domain name.
So, should you put a price on your domain name?
In an overwhelming number of cases, you should put a price on your domain name.
If you are getting serious offers for your domain name putting your price allows the company a target to achieve.
Companies will give up and move on if they believe the domain name is not attainable or the price is too unrealistic.
One little tip you can do is put a time frame on the price. This allows for the target but also communicates you can change the price.