It’s Not How You Will Use it But How it Can be Used
I can’t tell you how many times someone has told me that my asking price is too high because of the size of their business or because of their plans for the domain name. It boggles my mind when some people then become rude simply because the price and value of the domain name is beyond their budget.
Although most of these inquiries do not materialize into an acceptable offer and are simply ignored, it may be helpful to explain that the value of a domain name is not how the person inquiring plans to use it, but how the domain name can be optimally used. When I explain this, I sometimes offer the following illustration or something similar:
Let’s say you own a piece of undeveloped property in Manhattan. Just because one person wants to use the land for an urban garden does not mean the property is worth just a little bit of money. There are other entities out there who would love to build a large office building, apartment building, or other revenue generating business on that piece of undeveloped property.
I think the real estate analogy may be a bit tiresome, but I also think people are more familiar with how real estate works than how domain name works. People tend to think only about how they will use a domain name. Instead of looking at the domain name like an undeveloped piece of prime real estate, they look at it in terms of how much the domain name is worth to them.
All of that said, I think domain name owners need to also think about something when discussing pricing. Perhaps this one inquiry is the only inquiry a domain name will ever receive. Instead of imagining how much this domain name may mean to the ideal buyer, perhaps reality needs to set in a bit if that ideal buyer isn’t coming any time soon.
Reach out to Elliot: Twitter | Google + | Facebook | Email