Let Prospects Know About a Price Drop
I was evaluating a domain name today, and I searched my email archive because it seemed familiar. The first email that mentioned it was from the owner who was asking if I’d broker his domain name and he provided his asking price because I was interested in buying it. I directed him to a domain broker since I don’t broker names, and two emails later in my archive (about a year in between emails), I saw the name listed as sold for about a quarter of the asking price. It’s too bad he didn’t tell me about the price drop!
If you are contemplating reducing the price of a domain name, it’s important to reach back to anyone who expressed an interest in the domain name, even if you think it’s a longshot. People’s circumstances change, as does the market, and someone who may not have wanted to make a lowball offer may see your new price and be interested in working out a deal at a later date.
One thing that I really like about Sedo is that they send an email if a person reduces their price on a domain name I had inquired about. The email says, “The owner of [redacted.com] has reduced their sales price considerably, and the domain is now available for purchase on Sedo’s Domain Marketplace for a Buy Now price of X USD.” This is great for a seller because it gives the buyer a chance to re-evaluate at a lower price and it also makes the buyer aware that anyone else can buy it too, so it’s an opportunity that needs to be considered quickly.
It’s great when a domain brokerage or marketplace contacts previously interested parties automatically. Domain investors should also be proactive about this. A simple email stating something like “I have received an offer of $x to sell DomainName, and I am considering a sale at the price. Would you have an interest in beating this offer? I intend to make a decision in the next 24 hours, so be in touch ASAP if you’d like to discuss DomainName.” This simple email may not lead to a higher sales price, but it could result in a bidding war if you have two interested parties, especially if it is a competitive market.
In looking at the domain name I referenced before, I probably would not have bought it at the price at which it sold. However, the owner should have considered reaching out to me before agreeing to sell it, because it was a drastic enough price differential that I may have been interested.
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