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Approaching End Users for your domains – Basic Mistakes You Don’t Want to be Making!

Monday, December 1, 2008
By admin

 

Closing an end user sale is the only way to make serious money in this business. Yes it’s lovely when they approach you and make a fabulous offer, but this is rarely the case. So instead of waiting around for what is probably never going to happen, a small amount of domainers take the initiative and contact the end users themselves.

And it’s here that the fun begins. Now as far as I’m aware there is no right way to contact a potential buyer of your name. Yes there are certain things you can do to smooth the way, a polite e-mail, a professional sales call, etc…

But there are some things you definitely shouldn’t be doing and that’s what I’m going to focus on today:

 

1)      Don’t send your offer from a free e-mail address. Not only is it very unprofessional it also lacks credibility, trust and has a reek of spam to it.

 

2)      Do not send a one size fits all e-mail. You must tailor each mail to each company/individual you plan to sell the name to.

 

3)      Always send the mail to a specific person. Do not address it Dear Sir/Madam or just plain old Hi. (If you have to call to get the correct persons details then do so.)

 

4)      At the bottom of your mail you must have your telephone number, and preferably a website you have (this just helps to add a bit of credibility.)

 

5)      Do not have a spammy title to your e-mail. Make it professional and intriguing so it doesn’t end up in the trash or spam folder.

 

6)      If you are calling, make sure your sales pitch is perfect. Have all the reasons listed as to why this name is such a great fit for their company and what the domain can do for them.

 

7)      It’s a good idea to put an actual price in the email. Just having, make me an offer is unlikely to get you very far. I actually tried the same letter with make offer and a price and only got one reply on the make offer mail and four on the mails where I had a price listed.

 

8)       Be realistic with your price. You may think it’s a $100,000 name, but why would a company pay that for it. How many offers in that region have you received over the last year?

 

9)      Take time crafting your letter. It is your one chance to make an impression so don’t send out an unprofessional pitch. Obviously you won’t have it perfect first time round but hone it after each response you get. (The perfect letter is a moving goalpost and you will need to constantly revise yours.)

 

10)   If possible try to follow up with a phone call.

 

11)  Don’t give up too soon. It’s basically a numbers game. You could send out 100 mails and get nothing (although this is unlikely – you will at least have some response) and then the next 10 you send could yield the buyer.

 

Take a look at the below thread on Namepros as it has some excellent tips on crafting a letter to send out to end users.

 

http://www.namepros.com/domain-name-discussion/68798-how-to-find-potential-end-users.html

 

Next week I will be showing you a couple of letters I have sent out in the past, one successful and one not.

 

I’ll be interested to hear and see any comments from readers as to other mistakes that they have made or seen others make.

 

James



12 Comments »

  1. by Ricky |  December 1, 2008, 2:27 pm  

    Great advice. The thread on Namepros is very good and I have posted on it as well. I had small success and then it started to drop. Looking though to try a few new things in the new coming year.

    One thing however is like you mentioned. If the name was worth $100,000 or so Im a firm believer they would have already contacted you by now. Names in the $100-$5,000 range are the ones you should market to end users.

  2. by Leonard Britt |  December 1, 2008, 3:24 pm  

    Approaching end users is work that most domainers never do. But how often does one get a job offer by sitting at home waiting for a phone call. A job search requires an active and targeted effort. Likewise, selling a domain for real money requires a bit more effort. My wife and I are starting the end user method but in our effort she stumbled across a site which downloaded a nasty virus! Neither McAfee nor Adware seem to be able to kill it.

  3. by RegFeeNames.com |  December 1, 2008, 4:56 pm  

    For anyone to sell in the domain business to suceed you either need a great broker or know what to do and I think you have explained that very well!

    Regards,

    Robbie

  4. by Helder |  December 1, 2008, 7:37 pm  

    It’s an excellent post, you’ve pointed very important details for one to have success, i still haven’t sold to the end users i’ve contacted, but i got answers from most of them, so i guess i’m doing things correctly, at least in the way i adress them. I’ll have to improve the way i describe the domains, and the why they should buy it.

  5. by Jamie Parks |  December 1, 2008, 8:33 pm  

    Lot of good points listed here. The end-user game is a delicate one. If properly approached and presented, selling a valuable domain name to the natural end-user/end-company should be a smooth, enjoyable process. End-users buy domains because they fall in love with them. Companies buy domains because they can make money with them. Making love and making money are really the two things that make the world go around. Trouble is, not all domains are lovable or profitable ;)

  6. by JoshuaPz |  December 2, 2008, 12:49 pm  

    I would even go as far to say NEVER to register or purchase a domain unless either of the following are true:

    (a) You have a personal stake in the domain, OR
    (b) You can think of at least four end-users who, if the domain were pitched to properly (using the advice in your blog post), would purchase the domain with 15% probability or higher.

    Scan drop lists. Pick out & catch .com domains that either fall under a familiar niche or have inferior registered versions (.net, hyphenated versions, etc.) with active sites attached. Be conservative in choosing your prospects. Craft an e-mail pitch such as the one I contributed to NP thread you mentioned. Make sure to include the recipient’s name and the business’s niche somewhere in your messages so as to convey “I’ve carefully examined your website and have determined this domain will be a perfect fit for your group based on my observations.” Spray them from a University or work e-mail address Mon-Thu between 8am and 10am EST, which is the send time range that will maximize your chance of receiving a response.

    You are correct that the real money in domaining lies in end-users. I have generated $20K in revenue (on a tight budget) from this practice over the past several months, 90% of it from a combined 70 end-user sales. Only two of those sales clocked in at $1K or higher, and none surpassed $1400. My domain sales average $250 each, but my average ROI across all sales is 20x. Check out my latest post in the “Selling to End Users” NP thread for a general guide on setting asking prices when selling to small groups.

    My one curiosity still is, when calling in, who should I ask to speak with regarding my domain? I typically request the director of sales or business development, but I’d love hear success stories from domainers who have pitched to other business staff.

  7. by bob |  December 2, 2008, 7:36 pm  

    great post. Thanks for the info. My question is where does one get the end-users email address?
    I’m also wonderingif “snail mail” is worth doing.

  8. by admin |  December 2, 2008, 8:41 pm  

    Thanks for the comments guys.
    I’m going to start marketing my names quite heavily after Christmas so will be trying out a few different techniques.

    Ricky - i don’t agree with what you said about the companies contacting you. sure that is how a lot of the domain sales happen, but i know a few domainers (very successful) who go out ther , build the relationshps and achieve incredible sales. The point is you’re going to have to kiss a lot of frogs.

    Leonard - sorry to hear about the virus. I revently had my computer wiped clean and Norton taken off. i now use Avira which in my opinion is much better.

    Joshua - thanks for the post and i’m glad to hear of the success you’ve had. When calling companies i usually speak with marketing and sales and quite often the head of IT (who buy the way are the biggest lowballers on the planet.)

  9. by stephen douglas |  December 3, 2008, 1:47 pm  

    A quick note for end user sellers: COLD CALL AND GET THE MARKETING DIRECTOR OR THE PERSON IN CHARGE OF ONLINE ADVERTISING FIRST.

    Don’t bother writing an email. Get the name and phone number of the person in charge of handling the company’s website.

    Analyze the size of the company, and how much of a budget they may have, and adjust your pricing accordingly. You’d be surprised at how many $500 sales you can make for longtailed domains by just offering them at petty cash prices.

    For Leonard: DUDE!!!! Good god man… you got a virus from visiting a website? Are you still using a PC? I thought all smart domainers and internet users have switched to Macs. This NEVER happens to a Mac. (And you can run PC programs on the new Macs). I don’t want to start a war here, but Mac’s are rarely infected, if ever, and they run PC programs. Spend the extra few hundred bucks and get one.

    I haven’t been hindered by a virus, bug, trojan, or whatever for almost five years, using a Mac. However, when I’m on my PC startup side, I try to be offline. LOL

  10. by stephen douglas |  December 3, 2008, 1:52 pm  

    Oh, and I have no PC’s, but five Macs. All are running continually and online with no problems. I can’t tell you how much time and money (from repair labor) I’ve saved by switching to Mac.

    My wife, who is a teacher dependent on old fashioned PC websites and programs, switched to a MacBook Pro 15 inch. I bought it for her, and she fought hard to avoid using it. Once she got the hang of the incredible Mac OS, she now swears by it. It took about a month for her to convert. The HP laptop she was using before now sits in the closet. Anyone want a nice PC laptop for $100?

  11. by admin |  December 3, 2008, 6:02 pm  

    Stephen - I think i will be investing in a Mac this christmas.
    Most people i know are switching over to them, but i guess i’ve just been stuck in my old PC ways.

  12. by Solid Namer |  December 3, 2008, 6:44 pm  

    I have always included the “make offer” in the emails I have sent to end users, but everytime I get a reply it is always with a “how much do you want for it” answer. I think you might be right about including the price in the first mail would be a good idea. I will try that, next time I promote a domain.

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