If a random person and Bill Gates go to the supermarket, they will both pay the exact amount of money for let’s say bottled water. In other words, it’s not a “You’re Bill Gates and have a lot of money, so you have to pay more” situation.
Domains are different and I’ll try to explain why.
First and foremost, domains are definitely *not* commodities or anything of that nature.
Each domain is different and it’s not like you can say something along the lines of “Sorry Super Cheap Clothing LLC, SCC.com is not for sale but you can buy UNN.com instead, since it’s also a LLL dot com with two repeating letters”… I’m sure you get the point.
For the company Super Cheap Clothing LLC (random example, no idea whether or not it exists), SCC.com is the only LLL.com they should own and any other three letter domain is of no interest to them.
The list of examples could go on and on but again, I’m sure you get the point.
When it comes to domains, it’s definitely an advantage if you can figure out a thing or two about the end user who is contacting you.
If the end user is a deep pocketed company with a track record of domain acquisitions, trying to obtain more makes sense. On the other hand, if the end user is a smaller company and you quote a price that’s too high, you might very well ruin that potential sale right from the beginning.
Some domainers don’t care about end user research and simply quote whichever price they want to obtain, regardless of who the other party is.
I’m not sure that’s the ideal approach.
Why? Simply because figuring out who the other party is can help you make educated decisions, so why shouldn’t you take advantage of information that’s right in front of you?
Now of course, a lot of times, end users try to acquire domains in stealth mode.
For example, by using a free email address.
Or by hiring a broker.
It’s not always possible to figure out at least some information about that end user but when/if it is, wouldn’t it make sense to take advantage of it?
This works both ways, of course.
Don’t assume that your potential end users will always prove to be deep pocketed companies. A lot of times, the exact opposite is true and you’ll realize that the financial possibilities of a certain end user are nothing worth writing home about.
Yet even in such a situation, having that information puts you in a good position to make educated decisions.
If it’s a domain that’s not extremely important and the likelihood of ever receiving another offer is low, having some information about that end user might help you figure out how to start the negotiation process and calibrate your price expectations.
Quite a few times, domainers quote prices that are too high and by the time they change their mind and would be willing to accept a lower amount, it’s too late because the end user in question moved on. If that domainer would have known that the potential end user is a company with limited liquidity, he might have decided to tone it down a notch as far as the initial asking price is concerned so as not to risk losing the sale.
I’m not saying you should spend your entire day wondering who a certain end user is, I’m simply trying to explain that if the information in question is right in front of you, it might make sense to put it to good use.Advertisement: DomainingServers.com lets you host UNLIMITED domains at $0.98/month and we're putting a LIFETIME money back guarantee on the table (if you're not satisfied, we'll issue a full refund). To place an order, click HERE.