Can a good domain name sales technique to small businesses work with a big one?
In August I wrote about a successful end user domain sales strategy I’ve employed. Basically, you look up domains you registered a couple years ago to see if anyone has registered the .net, .org, or other version of the .com domain you registered. Presumably they wanted the .com, but settled for something else because you already owned it. These people are very targeted buyers for your domain name.
They’re usually small business owners who are receptive to your email, but that’s not always the case.
Last week, as I searched through a few more domains to look for registered .nets, I came across an interesting one. It’s interesting because the company that registered the .net and .org isn’t a mom and pop. It’s a big, publicly traded technology company with a market cap of $700 million.
The domain is for a type of software that could be applied to a router or firewall. I registered the .com back in 2005, the company registered .net and .org in September. It has yet to start using either one.
So this presents an interesting situation. Should I contact them right away, offering the domain for sale? Or sit back and wait for their plans to progress and for them to contact me? I’m curious for your thoughts.
Dan says
Have they done anything with the domain? If not and they plan to do something there – stands to reason being a technology company they will contact you. Which I would say is a stronger negotiating position.
jim says
same question when they have the “hypen” domain version
Donny1 says
This is what you do. You create a site that deals with the same type of product that they are dealing with. Make up one it does not have to be real, just as long as it is in the same are, or similar category.
Once established your in the wayback machine. Lawyers will look at this as you know.
At this point if that company creates anything similar to what you have then you let them know.
But don’t give a price or say it is for sale.
Let let them speak first. Let them spend all that money first then attack. They will not want to redo everything on the site and redo the products name. You bought it first make them bast—- pay for it. It’s your idea and forward thinking that you should get paid for.
And don’t park it or have it resolve to a ppc page like most people do. Your dead in the water if you do that. As you know they will use that against you.
Here is your problem the person that bought the .net is not a domainer or does not know the domaining business. Don’t assume they do but I know domainers are a unique group. The person that probably bought the the .net is a vp or ceo that knows jack about domain names…
They think that if they give you 100 bucks its a great deal, because they thought the 8 dollar .net was a good deal. Your not dealing with people that know our business. Protect your name now and attack later:)
Protect yourself now and then attack later on.. Remember they do not care about you. They believe you are stealing their business.
Donny1
Rob Sequin says
I think you will always get more money if they come to you. Then you can play hard to get.
If you do go to them, go to other potential buyers first to gauge interest.
Either way, I would whypark it or devhub it to make it look developed.
Whether you make any rev or get any SE love is a bonus but at least you give the appearance that the domain is developed or at least in preparation for development.
Good luck. Nice situation to be in.
Seb says
Let them come to you Andrew.
Russ says
Wait and see what their plans are for the name. If you get any inquiries for that name in the meantime, don’t let it go on the cheap.
Henry says
Even if they contact you, you still need to be careful. Research and research their motives.
Is it a trademarkable name? Can they claim first use right? The results of these and other questions will guide you hopefully.
Regards,
Henry.
Louise says
Hi, If it’s the company with the initials, GD, I would contact them, formally, in writing.
My take on their philosophy since BTAPPA approval for dot coms and dot nets is this:
Why pay money for the domain, when you can steal it for free?
Assert that you are the owner, and are offering it to them!
Robert Haastrup-Timmi says
It’s very interesting that you post this question Andrew, because I wanted to ask you something similar.
My advise would be do not approach them and let them come to you. The reason being they can tactfully use it against you, as in cybersquating with the intent to sell! Now this we know should not hold, however the outcome is un-predictable. Keep it parked at Devhub, Octane or Whypark, where it looks like a project in development, then you may perhaps strategically offer an open sale!
On another note, this does partly raise another relative question? I did a Valuate.com search on DownloadSoftware.com and the appraisal value came up at $1,560,000. My question is, what would anyone here consider to be a fair value for DownloadSoftware.tel or .mobi or .net? I ask this open question because while we all earnestly agree .Com is king and holds the highest appraisal value, lets get a little pragmatic since we all hold other tld’s.
If you have the tld equivalent of a premium .Com that has over 9 million monthly searches as in this case, what would you honestly consider fair value by comparison from a business perspective?
Bear in mind, if you develop the tld equivalent and its’s SEO’d etc, what percentage of competitive market revenue share would that .tel, .mobi, .net or .co.uk attract irrespective of the .Com?
These are the sophisticated questions we should all be asking ourselves professionally. So Andrew I would kindly ask for your professional feedback particularly on this and others too! Should it be 10%, 30% of .Com value, or whatever…tell me!
Cheers
Robert.
Chris says
Wow, I’m going against the pack. (But then again, I made my $$ in sales so I don’t do things the same way my poorer techie friends do.)
If name is not trademarked, then you should open the dialogue. Plant the seed.
Get a response. You’ll then be able to judge a potential outcome. Otherwise, you’ll be like so many other domainers…whistfully waiting for some Knight in Shining Armour to come to their domain’s rescue.
jp says
Well if you call them you may spark a udrp, but then again that could happen anyway. Just be glad you wrote this post. It will serve as evidence of good intent (I hope)
Louise says
Happy Friday! Let me add – thanx for putting me on to Valuate.com, Andrew!
Did you notice the new feature of Trademark Search? It’s a drop-down menu at the top!
How about searching the dot net, and see if it’s trademarked? That would be scary to find out the term is being trademarked, like preparation to file against you!
Steve M says
Pluses and drawbacks to both approaches; contact them or wait (hope) they contact you.
I’ve got another way to go, one I hadn’t thought of until just now (but plan to use from now on).
First, like others suggested, be sure you have a “real”-type site on it (ideally targeted to the same or at least similar market/s they are).
Then; whether you give them an explanation for why you want them or not; tell them you own the .com…and ask them if they’d be willing to sell you theirs; and if so, how much they want for them.
If they’re at all interested in yours, you’ll soon find out…
…and you will have done so without risking helping their case they might try to make that they’re entitled to your .com.
This is of course not legal advice.
DR.DOMAIN says
Thanx for the tip(s).I’ll be buried in my portfolio tonite if anyone needs to contact me.;-)
Daniel Dryzek says
If I were you, I would wait untill they contact you.
Bob Fontaine says
Good points by all. Another factor to consider is that, depending on the url, there may be variations that the company “settles” for if they feel you are develping your .com and may not be willing to sell. They may actually revert to another url when your’s is indeed available. Might I suggest a hybrid angle to one of the suggestions, contact them and suggest that they have the .net of your .com, and since it does neither of you any good to compete against each other, would they be interested in selling theirs, and if not, would they be interested in acquiring yours? That would allow you to effectively solicit their interest while creating a paper trail of ‘good will’ should they file against you at some point.
Open Domain Market says
UDRP – Don’t scare the domainers with that. This domain in question is registered in 2005. They came-up with the idea after. So, No UDRP case here.
I would wait, Let them launch the marketing. It will give you more leverage
FloName says
Interesting sentiments here. Definitely
don’t worry about UDRP. I like the idea of
planting the seed the creative way, leaving
it open ended to either buy theirs or sell yours.
If you decide to wait until they contact you, keep in mind that it may not be them at all! We’re all domain brokers here on some level, so as Russ said in an earlier post don’t let it go on the cheap. You could be approached by someone posing as a reseller and lowballing you out of thousands!
I would suggest that you decide for yourself what your willing to let it go for stay on course with that number. Especially if they’re that large of a company.
Robert Haastrup-Timmi says
FloName:
“I would suggest that you decide for yourself what your willing to let it go for stay on course with that number. Especially if they’re that large of a company.”
This is precisly why domainers need to be very careful during the course of solicitation. Think about the above statement for a minute, it suggests an attempt to apply extortionate price because the company is a large company …. $700 million dollar company right? Now, if I was a clever lawyer representing my $700 million dollar client, perhaps I could show legal recourse in regard to the domain name for obvious reasons.
My suggestion remains what I aforementioned in my previous post above. Tread carefully!
Bob Fontaine says
I’m not a lawyer but I play one on tv… “extortion” seems a little strong if no other party, big or small, otherwise has a right to a given term.. most of these domain names are simple common words of course. All things being equal, I can see even a small company (seller) having the right to ask and then have the buyer confirm in writing they they are the actual purchaser, the “end user” for that domain name regarding that particular sale. I may be willing to sell (for example only – the domain Texasstore.com) to a local department store for $1,000, but may NOT want to sell it to a Microsoft, if I know they will be competeting with my business, for less than $10,000. The law looks at non-compete agreements as having a value – and that would be the same theory. Put another way, one could say the domain name is for sale for $1,000 subject to a non-compete agreement or $10,000 with no restrictions. There is no law you have to sell at a price certain, or cant change your mind, or even offer it at one price to one entity and another price at another time to another entity. Offer and acceptance doesn’t preclude you from knowing who you are offering it to.
chandan says
contact them and make offer to purchase .net 😉
Dutch Boyd says
They could easily go with another name and brand just assuming that the .com is unavailable. Be the aggressor. What Chris said above is solid :
“Get a response. You’ll then be able to judge a potential outcome. Otherwise, you’ll be like so many other domainers…whistfully waiting for some Knight in Shining Armour to come to their domain’s rescue.”
Bob Fontaine says
Ahhhh, the very nature of “names”.
If they could easily go with another, the name likely isn’t that exceptional to begin with, at least not for them. I think those of us who dabble in names forget that many, many others, even established corporations, dont fully “get it”. If I had a media plan in mind, i’d grab the .com or find another if my first choice wasn’t available, I wouldn’t grab the .net. At minimum, i’d try to acquire .com before registering .net. But I still see expensive signs on trucks or on tv, often without even mentioning a domain name. Some may see the name registered and not realize there’s is a secondary market, as we do. If it is tryly generic and non infringing, I think the move is to place SOME content on it, and then propose the “will you sell me the .net, or if not, are you interested in the .com”.. Since they registered the .net, this will have them believe that you must be having success with the .com, enhancing your bargaining position, at a minimum.