A lot of domain name investors have a difficult time explaining who we are and what we do. To help those in trouble I’ve listed a few questions and how I answer them. Remember, we are a small industry. Because we are so small, you make a big impact on how the world perceives what we do.
First let me give you this example for your arsenal. A domain name is a piece of land. Owning a domain name is no different than someone purchasing a piece of land because they believe they can sell it for more money at a later date.
What do you do?
I am a virtual real estate investor. I buy domain names, then turn around and sell them for a profit.
Speak with confidence! People can pick up right away if you have any negative feelings about what you do. The average person understands real estate more than the internet. Why? Because they either own a home, have a friend/relative that does or have watched one of the dozens of TV shows about real estate.
So you buy people’s domain names and sit on them until they pay you a ridiculous amount of money for them?
No, not at all. I have no interest in purchasing anything that would either be trademarked or confused with one. Trademark laws prevent me from purchasing these types of domain names.
What do you mean by trademark?
Let’s use the company Walmart. They have filed the appropriate paperwork with the government preventing anyone else from using the term or name Walmart in any way. Examples would be Wallmart.com (misspelled), WalmartStores.com or Wal-mart.com. I would never purchase a domain name that can mislead site visitors into thinking I am associated with that company.
How do you go about purchasing these domain names?
There are several avenues to purchase domain names. First would be domain names that are available (hand register) for purchase using a registrar like Name.com. Now, just like property taxes, if someone doesn’t pay their annual renewal fees that domain name is taken away and made available to the public. These are called deleting or drop domain names. I can get a list of names coming available again soon and purchase them when they do. Another way of getting great domain names is helping people in need. When people need money, they come to me and offer to sell their domain names. This is a great win-win situation that allows them to put much needed cash in the bank and I walk away with a domain name usually at a reduced rate because of the quick sale. There are actually more ways to acquire domain names but you get the idea.
How do you sell domain names?
Just like buying, there are several avenues. The simple answer is either someone will contact me with interest in buying, I can list with an auction service like Sedo.com or BuyDomains.com or I can proactively seek out buyers that would benefit from owning my domain name.
What’s the most you have sold a domain name for?
I’ve sold a few hundred domain names ranging from $25-$1500 and honestly can’t remember them all. I do remember selling PrayerForum.com last week for $1200. As an industry though, we’ve sold millions upon millions of dollars in domain names this year. If you are really interested visit DNJournal.com and click the YTD sales chart on the top left. So far this years top sale is Toys.com for $5.1 million!
On a side note, I’ve had a domain sale of mid $x,xxx and low $xx,xxx that I NEVER bring up because of an NDA. If you have an NDA, don’t bring it up. When someone I don’t know says I’ve sold a domain name for $xxx,xxx but can’t discuss it because of an NDA, the first thing that comes to mind is they are lying. The sad reality is that most people believe you are full of shit. This is the #1 reason why the reporter of the New Times called us conniving. Instead of making something up, divert the attention to what we have done as an industry.
Practice these answers. The easier the information comes to you, the more confident you come across.
What do you guys think? Is this similar to how you would explain what you do as a domain investor?
Patrick,
Couldn’t agree with you more. If someone is asking you about the industry, talking about yourself and your own company also isn’t the best thing either for a reporter!
Craig
I try to tell them through a medium everyone understands, Music
I tell em :
Some people call me the cyberspace cowboy yeah
Some call me the gangster of domains
Some people call me a tease
Cause’ I speak of developing my names
People talk about me baby
Say I’m doin’ wrong, doin’ you wrong
But don’t you worry baby don’t worry
Cause’ I’m right here working from home
Cause’ I’m a picker
I’m a winner
I’m a hoarder
And I’m a sinner
pickin’ my domains in the sun
I’m a joker
I’m a smoker
I’m a mid-night domainer
I get my .com’s’ on the run
Ooh, ooh, ooh, ooh
You’re the cutest thing that I ever did see
I really love your keywords
Want to shake your tlds
Lovey dovey, lovey dovey, lovey dovey all the time
Ooh wee baby, I sure show you on google all the time
Interesting, lol.
I’d give some specific sales and how much . Although probably true, saying “I can’t remember them” lends a shadow of doubt too. At least have one in mind. That’ll get them thinking positive and lead the conversation a good direction I’m sure.
I agree, listing off a few sales would be preferred. I’ve updated my post to reflect a recent sale. As always you are full of great information Adam.
Domainerse should try to help the public better understand the industry (as you have here). There are many negative comments on Twitter about “domain squatters” with that term being used to refer to domainers.
I agree 100% Leonard. This article was inspired by just that. I personally talked to Craig from the New Times about his article for our industry and his use of the word conniving. After talking to him, I can understand why he came up with that conclusion. A lot of domain investors just don’t know how to explain what it is they do which makes US ALL look bad.
Hopefully this brief script/guide can help.
I use great restraint myself these days in trying to be as short and simple as possible,..I normally just throw out a couple XX,XXX sales,some details if there is no nda involved,. and give them examples on uses and benefits the buyers can utilize by owning the specific domain. seo, most people are not savvy when it comes to seo, but everyone knows google. And the old common sense factors such as credibility, memorability, pronouncibility, and easy spelling.
from last post song by : Steve Miller Band : The Joker
I really agree with u . Domains sellers and buyers are really running a profitability business.
In my industry it is pretty easy for people understand the domain side of things. They list a plant and I tell them I have that plant name dot com and they all say “Wow” and then I list more that I have. A conversation with any other plant business owner always leads to a “I’d like to come by and talk to you more about this”. Plants and their names run our business so they completely understand the value of the names. What they don’t understand is how you get them and what you do with them.