Everyone loves to hear about people selling a domain name for hundreds of thousands or even millions of dollars. But a sales price of that magnitude is the exception, not the rule.
In 2013, Sedo transacted more than 37,000 domain name sales on their marketplace. The average price was almost $1,900, with a median price of about $600. The fact is, most domain names sell in the range of $100 to $10,000.
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Everyone loves to hear about people selling a domain name for hundreds of thousands or millions of dollars, but the truth is that most domain name sales are in the three and four figures. Today’s show will focus on that sales range and provide real sales strategies and tactics that work. Stay tuned.
Michael Cyger: I have three short sponsor messages before we get into today’s show.
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Michael Cyger: Hey everyone. My name is Michael Cyger, and I’m the Publisher of DomainSherpa.com – the website where you come to learn how to become a successful domain name investor and entrepreneur directly from the experts.
In 2013, Sedo transacted more than 37 thousand domain name sales on their marketplace, and the average price was almost 19 hundred dollars, and the median price was nearly six hundred dollars. The median being, of course, the midpoint of all sales. 50% of all sales being above that number and 50% being below that number. .COM domains accounted for 53% of all the sales and averaged more than 22 hundred dollars per domain with a median price of 650 dollars.
Given this information, I wanted today’s show to focus on the tactics of selling three and four-figure domain names – those in the hundreds of dollars up to ten thousand dollars. Now, on December 12, 2011, Adam Dicker came on Domain Sherpa Show and discussed how to sell a domain name. It quickly became the most popular show on Domain Sherpa and continues to be number one today, both in terms of views of that video and reader comments.
Since that day, Adam has completed countless sales, so who better to come on the show and discuss the strategy and tactics of selling three and four-figure domain names? I would like to welcome back to the show, Adam Dicker, CEO of Domain Consulting Group, DNForum.com, and NicheWebsites.com. He is a frequent contributor to the Domain Sherpa Review and the Domain Sherpa Discussion. Welcome back, Adam.
Adam Dicker: Thank you very much for having me. It is always a pleasure.
Michael: Adam, let’s start at sort of a high level at the beginning of the show and then work our way down to the lower-level tactics later in the show. But before we start, I want to ask you a few questions about where your portfolio is today. When we had you back in 2011, you gave some numbers regarding your portfolio, but I know people always love to hear how portfolios change so we can sort of set the context for today’s discussion.
So, how many domain names do you have in your portfolio today and how are they grouped, by .COM, .CA, or other TLDs, or other groupings that you may use?
Adam: So, back, you said, 2011 is when we did the last one.
Adam: It was a little bit different than it is today. I mean I have been concentrating a lot more on my .CAs as well as just a little bit in the last little while on the new gTLDs, buying some brandables. So, right now I would say it is about 50% .COM and 50% .CAs.
Michael: And how many total domains do you have?
Adam: Right now it is about 30 thousand, because I have been scaling down a little bit and realizing, as I have been giving out advice, it is not so much about quantity as it is about quality. So I have been upgrading a lot of the domains over the years.
Michael: Okay. And you mentioned that you are playing around with some of the new gTLDs. How many new top-level domains have you acquired in the past month or so?
Adam: I am just looking for a list because I had a small list for you. I mean I have acquired quite a few decent ones, but not anywhere near the 30 thousand or 15 thousand .CAs or .COMs. So, I think I picked up, in total, maybe about 30 to 50.
Michael: Okay, 30 to 50. So, it is a very small percentage of your total portfolio size of 30 thousand.
Adam: Yeah, but I mean we have only had a few. I guess we have had twenty come out so far. The ones that I like the best – one of them has come out and the other ones have not. But when I am buying these new gTLDs, I am doing what I always do when I talk on your Sherpa Show; is that I am looking at businesses. I am not looking just to get something cool or something funny, or something I think I can flip. I am looking for something that would be a business or a name that somebody would want. So, do you wan me to go into some examples of them now or not bother?
Michael: Well, let’s hold that because I want to ask you about the gTLDs. What percentage of your portfolio would you say are ultra premium – they are greater than ten thousand dollars – of the 30 thousand domains that you own?
Adam: Well, you would like to think, obviously everyone likes to think, it is much higher than it is. If I had to think realistically, I would say it is close to 30% to 40%, which is quite high. My original thought was 50%, but I do have a lot of four-letter .COMs that would bring it down and some other things, so I would say 30% is pretty safe.
Michael: And you mentioned that in your previous show, back in late 2011, that you do own a large number of four-letter .COMs. I think you said it was about three thousand four-letter .COMs back then.
Adam: I think it was about 3500 back then. I think now I am down to about 2500 or 2600, maybe even as low as 2200. But I have not changed my theory on selling those. I have just found that as far as price goes, but I found some really good tactics to help sell them.
Michael: Okay, I am going to ask you about those. What percentage of your domain name portfolio would you say is between the five hundred and the 25 hundred, three thousand dollar range that Sedo claims is the sweet spot for selling to end users?
Adam: Let’s say 20% or 25%. And I agree the sweet spot, even when we did the video. I have got to admit something here. To prep for this show, I had to watch myself in the last video this morning to see what is similar, what had changed, and it was quite interesting. First of all, I never watched it really before. The clips here and there, but it was interesting to see how much has changed and how much has not changed. So, what was your question again?
Michael: So, I was asking you what percentage of your domain names are in that sweet spot that we are going to be discussing today. Sort of the five-hundred-dollar range to three-thousand-dollar range, and you said it was about 20% to 25% of your entire portfolio. So, about six thousand to seven thousand domain names are probably in that.
Adam: I do not know if I would go as low as five hundred dollars. I would put those – the 25%. I would put them between 25 hundred and eight thousand. So, two to eight thousand. I do not really bother selling the domain for five hundred bucks.
Michael: Right. Okay.
Adam: Although, if you get it for ten bucks and sell it for five hundred, it is still a good deal.
Michael: That is true. Now, Rick Schwartz always loves to say that that domain is pigeon shit or do not buy pigeon shit domains. And when he is saying pigeon shit, he means that it is not worth registering or the domain name will likely be dropped within the next year or two. Do you consider any of your portfolio to be “pigeon shit” by that definition?
Adam: Well, not so much by that definition, but by the definition that maybe I thought they were a good idea at the time. They have not generated any revenue or very little revenue. There are very few offers on them. I have had them a while and they are just not making money. I do not have any development plans for them. Basically, nobody has come, calling. They are not making any money. So, by that category, what I may have thought was good years ago may now be considered pigeon shit because it is just not valuable and there is no resell potential.
Michael: Right. And what percentage of your portfolio would you just ballpark, spitball estimate, is those?
Adam: I mean I would say everybody has some of those. I mean if you do not, you are not taking any chances. So, I would say five percent maybe. Let’s say five to ten, being generous.
Michael: Okay. So, of your 30 thousand domains, you have got about 30% to 40% of them that are ultra premium. They are ten thousand dollars up to six or seven figures. So, roughly about 12 thousand, 13 to 14 thousand domain names. You have got about 20% to 25% of them that you feel are in the 25-hundred-dollar range to eight-thousand-dollar range. And then the rest are scattered around, pigeon shit, prospecting of the new TLDs, waiting to see if some various industry trends are going to increase and if that might have value later on, but that is basically how your portfolio shakes out.
Adam: Yeah, I mean that is definitely true. I mean when 3D printing came out, I bought a bunch of 4D and 5D printing domain names. And I thought I would have to wait forever for those and at the time those were pigeon shit. And even today, if you look them up, they are not going to have much value, but I am getting offers now on the 4D printing domains. So, I mean one of the things I tell people is you have to have patience in this industry, and some of the best domains that I have sold or people have sold – I mean I had a deal yesterday. I was having coffee with somebody and he sold a domain name for over 1.25 million dollars, but he has had to sit on it for a while.
And it was about not that he was not trying to sell it. It is just that he had not found the right potential buyer. Once he found the right potential buyer, it closed in a week, but he was waiting three years. So, sometimes you have to wait or you have to find the right buyers. We are going to go into later, and I will just remind you about Download.net because that is one of those cases.
Michael: Okay, great, let me make a note of Download.net. Now, I have a feeling that Download.net was not in the five-hundred to under ten-thousand-dollar range, but we will talk about that anyways.
Adam: Thank God it was not.
Michael: Now that we have a good idea of how many domain names you have in your portfolio and how they are segmented by TLD and value, and of course you are located in Canada. That is your primary country of residence, which is why you have such a large Canadian top-level domain portfolio. Let’s discuss the activity on your portfolio. I think a lot of people think: “Well, if I just buy these domain names, they are suddenly going to sell,” but really, when you breakdown your domain names, you have active inquiries, you have passive inquiries, and then they all lead to sort of them all coming together and turning into sales. How many domain names, on average, would you estimate that you sell per month of your 30 thousand domain names?
Adam: I would say I sell, let’s say, about twenty to thirty or twenty to forty. In that area.
Michael: Okay, so pretty much in line with what you said a couple of years ago on the show.
Adam: Yeah, it has picked up a little bit since then, but it is probably pretty close. Just because some of the techniques I have picked up are a little better and it is not so much of a sit and wait attitude anymore.
Michael: All right. So, if you are selling twenty to thirty domain names per month, on average – some months may be more, some months may be less -, you must behaving many more dialogues with potential buyers that convert into those sales. And when I say dialogue, I am referring to an ongoing conversation, not a count of the individual back and forth. So, if I email you that I want to buy. You have got a fantastic SEO. I think SEOForum.com or SEOForums.com. If I email you and say, “Hey Adam, are you interested in selling this,” and you respond back and you say, “Yes.” And then I email you again and say, “Would you consider 20 thousand dollars?” That is not three dialogues. That is just you and me going back and forth, so let’s call that a dialogue. How many dialogues do you think that you have per month to sell twenty to thirty domain names?
Adam: Thinking about, I would probably say about forty to fifty.
Michael: Really, forty to fifty?
Adam: But that is actual dialogues. That is just not people sending me stupid offers.
Michael: Oh, okay, so that does not include the lowball offer through Buy Domains or Domain Name Sales for fifty bucks on a domain name that you think is worth six figures.
Adam: No. I do not consider that a real communication. And I do not want to get too much into some of the platforms, but I think they need to limit. When you set a minimum amount of five hundred dollars or one thousand dollars, do not give me offers for fifty bucks of one hundred bucks, please.
Adam: It just fills up my bin, my mailbox, and it is hard to filter through. But no, I do not include those because I do not consider those serious offers. Now, that is not to say you cannot convert some of them to serious offers, but the opening bid on a domain name always tells me something about the buyer, and it is very important to remember that.
Michael: Yeah, I am going to write that down and come back to that. The opening bid always tells you something. Now, of those serious dialogues that you have, those forty to fifty dialogues, what percentage of them are passive inbound leads? In other words, people looked up your WhoIS contact information for the domain or they contacted you, found your domain name listed on Sedo or GoDaddy Marketplace or Afternic – one of those marketplaces, and what percentage of them are active outbound sales that you initiated?
Adam: I would say it is about 90% active outbound and 10% of the inquires that come in are actually somewhat serious enough for a dialogue. And maybe even that is too high – ten percent.
Michael: So, 90% are active. So, if I just understand this correctly.
Michael: 90% are active outbound offers to sell the domain name to somebody.
Michael: Whereas 10% of the sales that you make are passive. They come in through one of the marketplaces or through a WhoIS contact, or something like that.
Michael: Passive from your perspective. You are not doing anything to initiate a serious dialogue.
Michael: Okay. All right, very interesting. All right, so I am going to ask you more specifics of the tactics, but 90% active outbound. So, that right there says to me that, in order to successfully sell a good number of domain names per month, you need to actively be contacting potential buyers. You cannot sell that many domain names by waiting for them to contact you.
Adam: That is correct. Not all of us or not everybody has the ability to sit around, wait for people to come to them, go back and forth, and maybe sell one or two or three or four domains a year. I mean yeah, maybe that is how many high end domains people sell, but in general, you will make more sales if people know you are out there. I look at it as I cannot open a retail store, selling whatever I want to sell, and not tell anybody I exist because nobody is going to find me unless it is by accident. I want to actually sell domains. I do not want people to find me by accident.
Michael: Yeah. So, we have had a lot of discussions in the past. I know you are a continuous entrepreneur. We talk about different ideas off the camera, about things you are working on, some new trend that you have discovered, and you have always got something going on, which is exciting. But if you were to only focus on your domain name investment business, Adam, how would you summarize your strategy for selling domain names?
Adam: Well, first of all, I would not want to drop those businesses off. They make good revenue. But what I would say, if I had to say it in one line, is I try to buy domains that a business would want if I was starting that same business.
Michael: And so, let’s dig into that a little bit. Buy domains that a business would want. That makes perfect sense to me, but are you buying domain names that a business wants to brand with or a business want a generic keyword domain for? How do you decide what type of domain name a business will want?
Adam: So, I mean you look at a couple things. Obviously you can play around with the Google AdWord Keyword Planner. I do not spend a lot of time with those tools that much anymore because a lot of it, to me, is in my head, but I do want to buy certain names that either related to products, services, information sites, or, like I said, a business would want. But it does not have to be a one-word generic. It could be something like – I mean content is king, for one thing. So, if you build a really good site on any domain name, it is going to get indexed. And if you build it into an authority site, it is going to outrank all the other sites that are there.
So, it could be something like CureForConstipation. Three words. It could be HowToSellADomainName, like you and I have done before on this thing. I mean people Google that. It does not have to be a one-word, a two-word, or generic.
Michael: But let’s assume that nobody is going to do development. Let’s assume that we are only talking to the people that are interested in buying low and selling high – the business of domain name investing. We should call it business of domain name sales. If they are only buying and selling it, how do they pick a domain name that is going to have value to other companies? You mentioned products and services. So, one of your areas of expertise is reputation management, and you ended up not buying ReputationManagement.com, but you bought ReputationRepair.com.
Adam: That is true.
Michael: As well as a host of other companies. A host of other domain names that are both geographic and keyword. Would you think that ReputationRepair is a domain name – it is a keyword domain name clearly. Is that one that businesses would want to own because it provides a service?
Adam: Yeah. Yeah, definitely. I mean I picked up ReptuationRepair. Then I picked up PersonalReputationRepair, CorporateReputationRepair, and OnlineReputationRepair. So, I got those reasonably cheap. I think all of those are great brandables for a business. Even though OnlineReputationRepair is three words, it is the right three words. And I mean just to tell you, these were like 5K. I mean 5K is a lot of money to some people. I understand that. But when you are investing in a business that you know you are going to make a lot of money with, it is not a big deal.
So let’s go back to the types of domain names that people should be registering. When you look in the drops, I mean I forget the exact name, but I think it was ProtectCellPhones or ProtectMobilePhones I picked up. I am working on a couple now. I am just trying to see if I can mention them. They will close after this video is released, but there are a couple of good ones I am working on. I will have to look while we are talking to figure out which ones, but there are a lot of good names in the drops that could represent businesses today. Oh, one of them is PrivateCordBloodBanks.com. I mean it is a four-word domain name, but it is good. So, there is CordBloodBanking, which I have, and then I picked up TissueBanking.com, which nobody was after and I registered it maybe a month or two ago, and it is big.
Michael: Now, I have never heard of that before. Is that one of your speculative bets? You are going to hold on to it for five or ten years.
Adam: No, companies are actually doing tissue banking now, and then there is placenta banking. There are all kinds of stuff that is coming on as far as health goes and banking, and this is one of those industries here. If you are going to do lead generation, I guess we will talk about this later, you want to get into businesses that have a product or service more than five hundred dollars so that when you get your ten or twenty percent, or 25%, you are making a good chunk of money off of that. And cord storage is over two thousand dollars these days.
Michael: Yeah, and that is one of your other businesses that we have talked about on a previous show. So, go to the Adam Dicker graphic at the top, and it will show you all the previous interviews that Adam has been on and you can watch that show. But if people just are buying domain names to resell them to others, would you say that a four-word domain name is going to have a lot of sales opportunities with those advertising companies that are trying to find clients for cord bank?
Adam: Yeah. And if you are not sure about it, check in Google and make sure it has got advertisers. If a domain has advertisers and people are buying that keyword, it is certainly a target audience you can sell that domain to.
Michael: Yeah. Okay. So, everyone knows that there are two extremes to selling domain names. You have got the passive strategy, where you just buy a domain name and you sit and you wait for the offers to come in. That is sort of the Rick Schwartz model. He is buying a domain name and expecting to hold it for ten years for people to come. And then you have got the active strategy, where you are constantly reaching out to end users to turn over the domain names, to flip them, to sell them for a profit. You believe in both those strategies, don’t you, Adam?
Adam: Yeah. I mean, for some names, you have to wait for the right buyer to get the right price. But for other names, you have to be more proactive. I mean it really depends on the domain name, and it also depends on your situation at the time. One of the things that I do when I start work every day is I tell people to concentrate on the stuff that is revenue effective. And the reason I bring that up is, if you concentrate first thing in the morning, do not do the coding that you like. Do not work on the website that you like. Answer the customer inquiries, do your customer service, answer your sales calls, and then do all the stuff that is not going to make you any money.
I start out every day as if I need to make enough money that day or today to put food on the table. And I started every day like that, and I have done that since I started domaining. I brought a prop for you. You know about this. We have talked about it before. I always have a bell, and I started out, ringing the bell when I hit fifty dollars per day. Then I hit one hundred dollars per day and my goals changed, but every day I try to ring that bell as if I have made nothing the day before, because it does not matter what I did the day before.
Michael: All right, so always start with your hot leads. The inquiries that are coming in. The people willing to spend money or are exhibiting some sort of interest to spend money rather than doing the other activities.
Adam: Yeah, or go back and look at your contacts from a year or two ago, and see what you had that maybe did not follow through on. Maybe their cash flow situation is better or different today, and maybe you are asking less for the domain today. Who knows? But you have to be willing. In this business, you have to have really strong drive, you have to have a lot of common sense, and you have to be willing to work hard, because sales are not going to come knocking at your door. But there is still a lot of money to be made in this business. I mean if people think that just because they are coming in, in 2014 and it is a business where you are not going to be able to make money, that is not true. But it is not a business where you can come in, buy a bunch of domain names, and think you can just sit back and you are going to win the lottery, because it is not going to happen. You have to have patience and you certainly have to have the ability to do a lot of reading before you actually buy money.
I have sen lots of people go out and buy portfolios not just for thousands of dollars, but for hundreds of thousands of dollars, buy all the wrong crap, and then they are stuck with it and they are looking at me or somebody else to help them get rid of it, and it just not going to go. It all starts with what you buy. If you do not buy names that are sellable, you are not going to get selling. I mean it does not matter how much you know or how much you do. This business is 98% at sales and negotiation and two percent registering domain names, because any idiot can go out and register any domain names they want, but that does not mean they are going to sell them.
I had a guy send me a list last night, saying, “Oh, can you help me with this?” And I looked at the list and I was like: “No, I really cannot.” I cannot sell crap. I mean everybody for some reason thinks they can go to somebody and they can help them, but I am not a magician. I mean I cannot turn a crap domain into a good domain, and better yet convince some guy to buy it. You are laughing, but it happens every day.
Michael: Well, I know, but we brought you on the show today for the specific purpose to help give people the information that you cannot just buy domains and expect people to show up and offer you much more than you paid for it. You actually have to do sales and negotiation.
Michael: So that is what we are going to focus on today, and we are not trying to shoot for the moon. We are not saying that you can go register a domain name today and sell it for six or seven figures, for a million dollars. You are not Michael and David Castello, who registered Whiskey.com for free back in 1993 or 1994, paid your hundred dollars every two years, held it until this month, and sold it for 3.1 million dollars. Like those types of situations may happen, if you register the right domain name today on emerging technology or industry and wait ten years for it.
Adam: That is another excellent point. One of the things that I do, and I have talked about this before. I have not talked about this part, but I will give you a tip for all the people that are watching this. Get on every Facebook account, every news list, every email list that talks about trending or trends, and you will get emailed in your inbox all kinds of little gifts that tell you what the upcoming technology is. What the upcoming thing in the medical field is. What the upcoming thing is in every field. Get on those lists. What the new home products are. I get them every day. I mean that is how I found out that violet-ray are going to be the next big thing after blu-ray. Get on all these things, and then you will be one step ahead of a lot of your other peers who are too lazy to do it.
Get on those lists, because how do you think Frank Schilling gets all these things about – oh, I do not know – twerking and everything else that he ends up with? I mean it is because he is smart enough to get somebody to get on these lists and let him know what is going on. You have to be ahead of the game. You cannot be with it and you cannot be behind it.
Michael: But here is the catch. If you are going to invest in trends that are building slowly or quickly over time, you need to be invested for the long-term. This is not the kind of business where you are going to spend money registering ten domain names a week on trends that you see happening and you are going to sell a lot of them, because you are going to need to wait for those trends to mature. And a lot of them, most of them, are not going to mature to something that is going to produce a payday for you.
Adam: Well, there are not a lot of businesses you can open with a brick and mortar store, expect to make a lot of money in a year, and then shut it down. Unless you are into tax evasion or whatever you are trying to do, and you are selling pianos or swimming pools for fifty thousand dollars and keep all the taxes, and shut down and change the name of your company.
Adam: This is a business where you are going to have to stay in it. And I am not saying invest all your money at once. Buy one or two names in that field, and the right names, and see how it goes. The other thing people need to consider is you need the buddy system in this industry. At the beginning, when I started out, I had people that I would talk to and I would bounce names off of them and they would bounce names off of me. I still do that. You and I have done that before, just to see if we are on the right track. You need that because sometimes you are so focused on thinking you know what you are talking about and you registering. You invest too much money, especially if it is not a fresh registration. You are going to invest twenty, thirty thousand dollars, or ten thousand, or five thousand for a name. You want to know you are doing it, and there is more than you that thinks it is a good idea.
Adam: So you need a buddy.
Michael: Yeah, and that is a great point. And when you choose a buddy, what kind of buddy should you look for, Adam?
Adam: Somebody who hopefully has as much or more knowledge than you. Somebody that you can trust that if it is a fresh registration that will not go out and register the name or talk to the owner. If I tell you – I do not know – Sushi is available. Sushi.com. I am interested. It is 30K or 40K. I want to know, when I hang up the phone, you are not going to call the guy and say, “Hey, I will help you get 35 for it.” So, somebody that you can trust. Now, I am lucky enough in this industry because I have been in it so long that I have a half-dozen people that I can really trust. Those are the kinds of people you need to associate with, and just needs to be one. One or two. And I mean if you trust somebody and they trust you, you will make great money together.
Michael: Yeah, great point. And I know I have a couple of people that I bounce ideas off of because if you are not available on Skype, maybe you are running around with the kids or something, or it is a weekend, I can ping somebody else that might be on my Skype list.
Adam: And that is how it should be.
Michael: So, I want to spend a majority of the interview talking about active sales outbound leads, but I want to touch on passive sales inquiries for the first part. In order to get passive inquiries, you need to have proper WhoIS information listed on your domain name. So, in the past, you have said you do not use privacy on most of your domain names or all your domain names?
Adam: I would say 99.999% of my domain names are not private. Now, you have to be careful with some of the CCTLDs, because the .CA by default, a lot of the times, they put privacy on and you have to call the registrant and tell them to take it off. But there is no point in putting privacy on my domain names if I actually want to sell them. Now, if I am building a business, it could be DNForum, it could be anything else, and I do not want to take all these phone calls about people offering me a thousand dollars or do I want to let them do SEO work for me, or whatever it is, then that I may put on privacy because I just do not want to be bothered. If people need to find me for DNForum, they know how to do that.
Michael: Yeah. So, in terms of other passive sales channels, where the leads just come to you without you doing anything, you can list your domain names for sale on different marketplaces. For your portfolio, which marketplaces do you list your domains at?
Adam: So, I did sell one yesterday on Afternic, and this would be one of those domains that would fit into your list for the show. It was NAPZ.com. I think it was a six-thousand-dollar domain name. Somewhere in there. It is one of the four-letters. I was happy to get rid of it. It is pronounceable, but I had no idea with it. So, Afternic, yes. GoDaddy premium listings. GoDaddy regular auctions. Sedo. Anywhere else, any other marketplaces that you could list them on. The more exposure you can get for your names, the better it is.
Michael: There are a million marketplaces out there, it seems. Every broker has their own marketplace and you might feel like: “Well, if I can get onto that marketplace, Adam said that any exposure is good exposure.” There is a point of diminishing return, isn’t there?
Adam: I do not personally think so as far as marketplace, but I also would not go to some of the smaller ones that really would not offer me any value except to make their marketplace look good because it had some good domains in it or more domains in it. So, I mean I would go by what you have heard, by the ones that actually sell domain names. The ones we get reports for all the time. That is like the Sedo, the GoDaddy, the Afternic. I mean there is nothing else that comes to mind. There must be some I am missing.
Adam: Yeah, BuyDomains. I think BuyDomains is their own portfolio and Afternic is the marketplace. Something like that.
Michael: Okay. So, on those domains that you list on Afternic and GoDaddy, GoDaddy Auctions and Sedo.
Adam: Oh, sorry, and Frank Schilling’s platform I list them on as well. DomainNameSales.
Michael: DomainNameSales.com. Do you set prices on those? Like on this NAPZ.com, did you set a six-thousand-dollar buy it now price?
Adam: On that one I did not have a price, so they emailed me and said you need to go and fill in the buy it now and the floor price. I went back and I filled it in, and then a few minutes later I had a thing: “Congratulations, your domain is sold.” So, I have done a few of those in the last three days with Afternic, and we will see. I did another one today. Trying to think about it. I do not know what it was, but I mean when you get a lot, it is hard to remember them all, but I mean it is a good position to be in.
Michael: So, when you get an inquiry, you will set a price on that day. Do you feel like you do not want to set your prices now because it might not sell for two years and then your price will be locked in?
Adam: No, the problem with pricing is, and I have had this before, where, if you do set a price – let’s say I set a price on Sedo and I set a price on BuyDomains -, they will try to grab it at the price. So, sometimes I will purposely set the price fifty dollars lower on one of the marketplaces just to say to the guy: “6500 is the lowest I could go,” but meanwhile it may be on Sedo for 5500, and then he will grab it, thinking he got a good bargain out of me. So, there is some strategy involved to outsmarting the consumer. You liked that, didn’t you?
Michael: I did like that one, because everybody is always looking for a deal and they think they are so smart by going to check the different marketplaces, so I love that tactic. So, when it sells on Sedo and you have it listed on Afternic and GoDaddy and DomainNameSales, do you then have to manually go back to all those other marketplaces and remove it for sale?
Adam: I am going to be honest here. Yes, you should, but no, I do not. I will. I am going to try more to do it. Lately I have not done it, because when you have a huge portfolio, it is very tough. What I like to do is every few months instead, I will download the portfolios, delete it from the accounts, and then I will re-upload the current portfolio, because there are drops that happen every day or every week that you just cannot go back to all the marketplaces every day and do it. It will take a couple hours of your day.
Michael: That is a great point. So, if you maintain one master list, either in a spreadsheet or some computer program, once a month you can delete out everything and re-add it back in so it is two steps basically.
Adam: I do. I go and I do a master list. I take everything from all my registrars. I put it in a file and then I re-upload it to the things, and they clean it up for me. But I recently had a domain name that I thought I still had, and then I got a call and I agreed to sell it. And then the guy saw a show, and you know the story. I think it was 4DPrinter.net. I am not sure. And he said, “Hey, you do not own this anymore. You dropped it and I own it.” And he was a really nice guy and he said, “Tell you what. You have got the lead. I never would have thought to ask 8K for it. I would have sold it for a thousand of 15 hundred bucks. Since you have got so much money, I will split it with you.” And then I followed through with the sale and he honored that, and I split it. I got half the money and I gave him half the money, and he was thrilled. And it taught me a good lesson to make sure to check that you actually have it first. I was embarrassed by that, but I am not afraid to talk about it because we all make mistakes.
Michael: And I love that because it happens to all of us. So, of the 30 thousand domain names that you have, you mentioned about 20% to 25% of them are priced in the 25-hundred-dollar range to eight-thousand-dollar range.
Adam: Hold on. They are priced in my head that way.
Michael: Priced in your head that way, and that is my next question. Because we are talking about three and four-figure domain names, of those six thousand domains, let’s call it, when you upload them to Sedo or Afternic, do you price them or not price them?
Michael: None of them are priced.
Adam: I may put a minimum price just to weed out some of the people that may just want it for a hundred bucks or something like that, but I definitely do not price them. And that is because sometimes you limit yourself on domain names, like Luke would have done on 4DPrinter. If he priced it at 15 hundred bucks, he would have got it and he would have been happy, but there is another 65 hundred dollars on the table.
Michael: Yeah. So, you do not price them. You wait for people. Do you wait for people to make their offer first, before you offer a price? What if they just email in through GoDaddy and say, “What are you asking for this domain name?”
Adam: No, I will usually price it at that point, if I do not have any clue who the buyer is. Like if I know who the buyer is, then I will do a lot of research first, like with PW.ca, when I sold it to Price Waterhouse. So, at that time, those two-letter .CAs were not more than 80 thousand bucks, but I got 60 thousand for it. So, the most important thing you can do in this business is research. And it is not to extort more money out of a buyer, but it is to put real value on what that domain is for that company and for other companies.
Michael: Sure. And it is not different than any other industry. If a gutter company that cleans gutters or replaces gutters shows up to a mansion versus a doublewide trailer, they are probably going to have different pricing for doing the exact same job.
Adam: Does a doublewide trailer have gutters?
Michael: That is a very good question. What is that minimum that you set in order to get offers through any of the platforms?
Adam: Well, I mean I usually set it. For a long time I have set them at 2888, or something like that for my four-letter .COMs. And then I got lucky with a four-letter .COM recently that we can talk about. It is called IGZO. Do you want to talk about it now or later?
Michael: Yeah, let’s talk about it.
Adam: So, IGZO. I had it because I registered all the available four-letter domain names. And I did not know this, but years later, like now, Sharp, Toshiba, Apple – they are all changing their screens to these new IGZO screens. It is some new technology for the screen. So, I have set it up on IGZO. It is Igloo Zone for Canada, so it is not in competition with anything, and I am just talking about the benefits of igloos. You have got to do what you have got to do.
Michael: You have got to do. So, you set a 2888 price. 2,888 dollar. So, you will not accept an offer that is below 2,888 dollars.
Adam: I mean sometimes I will look at it if they email me. I mean it depends, but usually no. I mean I have sold a lot of these domains for at least that. I mean the lowest I would probably go is two thousand dollars or 1995, but generally there is no reason to. Like I have sold hundreds of them since we did the last interview. Most of them at 5K plus.
Michael: So, your opinion is that if you are buying good domain names – four-letter, products, services, domains that could describe a company, an industry, something like that -, they are worth at least two thousand dollars. You think that you are not buying crap domain names, and you and I have done a great interview in the past about buying good versus crappy domain names. You are buying good domain names. It should have a floor of at least two thousand dollars.
Adam: Yeah. I mean if you do not think you are going to be able to buy it and sell it for at least two thousand dollars, maybe you should look at a different domain name, because actually you are going to have to do more work on a two-thousand-dollar sale than you are on a five-hundred-thousand-dollar sale from what I have seen in the past.
Michael: Great point. So, you listed the marketplaces. The Afternic, the GoDaddy Premium, the Sedo, BuyDomains, DomainNameSales. Now, at GoDaddy and Sedo, you can list it for sale on their marketplace, but then you can also send it to auction. How do you choose which domains you send to auction and how often do you do that?
Adam: I do not think I have sent a domain to auction maybe more than once in the last four years. So, I mean if I have got a guy who is negotiating, if he is not willing to give me my price, I am not going to guess that there is somebody out there. Now, the only way that I will send it to auction is if I have picked something up like an acronym that I want to sell. I have got ten companies that I have found that may be interested. I will send them a note and I will say, “Look, I am not brokering this domain name. The person or the company that is using it has no use for it. If you are interested in purchasing it, please go to this link,” and then I will send them to the Sedo link. And I have had some good success with that, but I am not going to take somebody that just emails me out of the blue or sends me a quick link out there because, first of all, I do not know what the price is. I do not know where I want it to end up.
Michael: Yeah, good point. Now, all of these marketplaces – the Afternic, the GoDaddy, the Sedo, DomainNameSales – allow you to change the name servers on the domain so that if anybody types it in, it goes to a landing page served by them that says, “Click here to make an inquiry or to buy it now.” Which domain name marketplace do you recommend people use? If they are going to list them in every marketplace, which one should they point their name servers to and use as the contact form essentially?
Adam: This is a tough question to answer because I do not find much success with that. I can tell you that, in general, domains that are not making money, I will send directly to those forms for basically lead generation to get a buyer. What names are making money I will just leave on the best parking platform that I found.
But how do I do that? I mean if you think you are getting more offers through Sedo, then it makes more sense because you have dropped your commission, I think, from twenty percent to ten percent if you are using their landers. It really depends. I mean I do not think there is a real right answer to this. I think it is good to have a for sale page because you are not going to make for sale pages for all of your domain names. So, whichever platform you like the best, but I have not found one to be better than the other.
Michael: Yeah. Okay, good point. So, you focus really on the parking and wherever you are making the best money, you will use their landing pages because they are going to be parked.
Adam: Yeah, unless it does not make money. I mean some of them may have traffic. They are not making money. That means they have to be retargeted. Some may have a lot of traffic. They are still not making any money, or they have no traffic and they are not making any money. If they have no traffic and they are not making any money and they still have resell value, those are ones that I will turn over right away. I will not even bother with parking.
Michael: Yeah. All right, let’s talk about offers that come in. You said earlier that the opening contact always tells you something about the potential buyer. What does it tell you?
Adam: Well, I mean if you have anywhere between. First off, you will get those people that are going to say, “Oh, I will give you this domain name. You are a domain thief. I will give you ten bucks for it – what you paid for it.” That obviously tells you, you are just going to have a big headache. He is a waste of time and forget about it.
But you are also going to have offers in the fifty to hundred-dollar range. That tells you they understand a bit more. The domain name is going to cost some money to get. But when you start with offers that are in the five hundred to one thousand range, you know you have a more serious buyer. Somebody who knows they are going to have to be out of pocket a good amount to buy the domain name.
If you are lucky enough to start in the five to ten-thousand range, then you know you have got some person that really wants the domain badly, and now it is up to you to figure out why and figure out what price you want it and get it at that ballpark. I have had names that start at five thousand and end up at half a million and so on. So, the opening offer will tell you a lot.
And the other thing that I like to do is, when people send me an email and it has got a Gmail or a Hotmail or something, and it is a decent offer, I always say, “Do not bother sending it. Send it from your company name, because I cannot take an offer serious from a Gmail or a Hotmail.” And for some reason, people do not get insulted by that. Within a minute you have another email, saying, “Sorry, sorry, here is my information.” Then I have their company information. Then I can do my research.
Michael: But what if they do not have a company? What if it is just an individual that works at a company, but they are inquiring about a domain name for a future endeavor?
Adam: Well, I mean if they do not have a company behind them, probably you are going to get less money for it. Not necessarily, but probably.
Michael: Good point.
Adam: So, ideally you want somebody that has a job. They do not have to have a company, but ideally you want somebody that has a job that can send you something from their work email, or even if they are not the owners of the company. You just tell them: “Send me something from your work email so I know you are related.” It does not have to be the CEO of Burger King or McDonald’s, or some other huge company.
Michael: So, if I just work at GE Capital, you want me to send an email from Michael.Cyger@GECapital.com rather than Michael.Cyger@Gmail.com, just so you know that I am a real person.
Adam: Yeah, but you are not going to be Michael.Cyger@Gmail in most cases. You are going to use TheBigKahuna@Gmail, or something else. I mean I use Adam.Dicker@Gmail, but I do not use it for domain inquiries too often. I tend to use my own email address, usually, and on the odd occasion I have been known, like everybody else, to pick a different one so people do not know who you are so they cannot figure out why you would want it.
Michael: Right. Okay. And if they are using an ISP, maybe it is not Gmail or Yahoo, which are the two big free ones. What if they are using Comcast or they are using – what is the big ISP up in Canda?
Adam: Oh, Rogers.
Michael: Rogers. What if they email me from Rogers.com? Should I respond back in the same fashion – send an email from your work address?
Adam: Yeah, I do. I mean I always do, but then you can also think of there are so much other opportunities when you sell a domain name that people need to explore. And we are going to talk about that whenever you are ready, but there is so much more money to be made than just that domain sale.
Michael: Okay, so let’s come back to that. I am going to make a note. So, my next question is: somebody sends in a ten-dollar offer. Now, I remember being that person that sends in a ten-dollar offer. And it is not somebody trying to be nasty or trying to insult you. They do not know the value of domain names and they think: “I can register a domain name for ten dollars at GoDaddy. If you are not using it, maybe you will take ten dollars as well.” How do you respond to a ten-dollar offer?
Adam: It depends on my mood, but usually I am going to respond and say, “We are just too far apart, I think you ought to pick another domain name, because I am looking for five figures for this domain name, or four figures for this domain name.” And then it lets them know what I am looking for, and then they have the option to find another domain name and not waste my time or come back to me with a more realistic offer.
Michael: Do you ever respond back and say, “Domain names have more value than just registration fees. Great domain names have been registered for a number of years. I have received offers that are much higher in the four figures that I have recently turned down,” or whatever the true case may be? Do you ever respond back and try and educate the user that may just be totally ignorant that there is a domain name industry that is four or five billion dollars large?
Adam: Well, anyone that knows me knows I am not big on long emails, so I will respond with one line usually or two lines. I may refer them to a page and say, “Look buddy, that two-letter .CA or whatever it is. The last one sold for 60K or 80K. Go look over here and come back to me, but it looks like you are going to have to pick another domain name.”
Adam: I mean people want what they cannot have. It is the thrill of the chase. It is like the auctions. You are thinking about your wife, or my wife, but it is like auctions, where they want it and they bid it i up. They get caught in it and then they spend more than they would, and they get it. And it is a lot like dating, where it is the thrill of the chase.
Michael: Exactly, that is how I got my wife. So, how do you respond to a decent offer? We understand how you respond to the lowball offers of ten dollars. Now, let’s say that a domain name is selling for six thousand dollars. The NAPZ.com example that you just told us about. I email you and offer you five hundred dollars or four hundred dollars. I do not want to go too high. Maybe you think it is only worth one thousand, so I am going to go five hundred.
So, my first offer is decent, but clearly not high enough for a four-letter .COM that you own.
Adam: Well, right out of the gate I am going to try to get you on the right path, and I am going to give you the same thing. Not quite as harsh, but I am going to say, “Look, the minimum.” And sometimes I will make myself the third person if it is through a platform. So, if it is through Internet Traffic, Frank’s platform, I will say, “Look, the seller is not interested in anything under 4K. So, if you are interested in that, get back to me at this price. Otherwise, I wish you luck with your business,” or whatever it is.
Michael: Yeah. Now, when you say the seller is not interested in anything under 4K, doesn’t that just tell the buyer that they need to make a 4K offer or a 3500 offer if they would want to test the waters?
Adam: It does, and that is why I will take it in, knowing that they may come just below it and say, “Well, you think he would take 3500?” And at that point, I have a decision to make.
Michael: Got you, but you do not lock it out. You are not trying to set a line in the sand to say four thousand dollars is the sale price.
Adam: I am not setting a line in the sand, but I am resetting his expectations on the five-hundred-dollar offer. I mean the bottom line is I would not sell the domain name for a thousand dollars, so why waste my time or his time going back and forth and just frustrating both of us?
Michael: Yeah, good point. And again, I go back to education. If the buyer does not know that that is a reasonable price – that is what the going rate for a four-letter .COM is -, does it not benefit you to try and educate them on that step or is it just you are going to spend 90% of your time educating people that are not going to convert at that level?
Adam: Well, you are going to spend time educating people that are not going to convert, but I kind of get that once in a while myself and I feel like it is a slap in the face. Like somebody that does not know who I am or my experience and they go: “Look, this is what it is worth.” Sometimes it is a bit of a slap in the face. You are assuming they have no knowledge when maybe they do and they are just lowballing you. I would rather just tell them what my expectations are, and then they can decide if they want to meet those or come close to those.
Like I said, you can put in a link, but sometimes you put in a link and they are going to go off and they will never come back either.
Michael: Yeah, great point, Adam.
Adam: You may scare them.
Michael: Yeah. When I worked at GE Capital, the cycle from inquiry to sales proposal. If somebody was trying to finance a 50-thousand-dollar printer or Xerox machine, let’s say, the cycle time from the inquiry to actually getting them the proposal that says here is how much the loan would be was a critical indicator of whether the sale would go through. Is it true in domain name sales too? When you get an inquiry about a domain name, how quickly you can respond definitely affects how many conversions into sales you get.
Adam: No. As a matter of fact, it may be the opposite. I am working on another seven-figure sale for a customer in Australia, and one of the things that we are doing is I purposely delay. And what has happened in some cases when you purposely delay – so, let’s say they put out an offer of five thousand dollars. I find that if I delay and do not answer for a couple days, they will come back and say, “Well, I have talked to my client and they are willing to go to 16,” or, “I have talked to my client and they are willing to go to 25 or 30.”
This has happened on many occasions, and this is how some people leave money on the table. Sometimes you can jump too fast. You do not want to seem desperate. I mean it is like the guy who is out. You are just out and you are having a good time, and you just do not want to seem like you are desperate. You are not going to ask every girl to dance. I mean pick the one that is most attractive to you and ask her to dance. I mean she will probably say no anyway, but at least you will have asked somebody.
Michael: But that is a great point. But that is a five-figure or six-figure domain name, Adam. We have talked about those in the past. Your sale of Seals.com.
Adam: It is really the same thing.
Michael: Is it the same in three and four-figure domains? If I contact you today and say, “Five hundred dollars for NAPZ.com,” but I have also got some other domain options and you do not get back to me for a couple of days, I may want to pull the trigger on a domain name and go buy another domain name and use up my marketing budget for domains.
Adam: But we are still not near the 4K I wanted anyway. So, like I said, I will respond probably fairly quickly to these and say, “Look, here is where you need to be.” And then if we responds with like five hundred or eight hundred dollars – he goes up a little bit -, I am not going to jump at it. I am not going to seem like I am anxious to close it, because then if you seem too anxious, like a guy goes into a car dealership and he seems too anxious, the guy knows he his going to be able to charge him for every possible spray and wax and coating on the leather stuff, and double the price of the plate and stuff.
I mean you cannot seem anxious to buy anything in a store where price can fluctuate. Now, if there is a price tag on something, it is different. But where price and fluctuate, and there is lots of stores like that, like a jewelry store. A guy goes in to buy. He is really excited. He has got his girlfriend with him. He goes in to buy a ring for her or something. The store clerk knows if she wants it and her eyes light up, he is a little bit screwed and he is going to have to pony up what she says, whereas if it is you or me or somebody else that goes in, you have a little bit more room to negotiate. You have to always allow yourself that room to negotiate. It goes back to 98% sales and negotiation, and sometimes negotiation is knowing when to respond and how to respond.
Michael: Great point. So, when an inquiry comes in through one of these platforms and it shows up in your inbox, do you ever just pick up the phone call and call the person back, or do you do your triage – your first level of responses through – email only?
Adam: No, I would say that I still believe that the phone is really good. And I am going to say something else that people will not expect in this video. Now that everyone is using email, snail mail is excellent to get in front of the buyers, because they do not get a FedEx envelope from somebody saying here is a benefit of why you should own this domain name, and they actually open it up because nobody sends regular mail anymore.
Michael: Yeah. So, what is an example of that, that you have used yourself? Has that worked for you?
Adam: It has worked a couple times. I mean I cannot think of any specific examples, but I sent them out on premium domain names. I have sent them out on lower end domain names. I have sent them out on quite a few. So, I mean it does work. You do not have to send out hundreds. You target a few buyers and send them out.
Michael: Yeah. If an offer comes in for one hundred dollars on a domain name that you hand registered for six, eight, or ten dollars and you think that the domain name should probably sell for about two thousand dollars, what do you say and how much do you counteroffer at?
Adam: Well, that is a good point. The first thing is that people need to know what they paid for a domain name. They need to know how long they have had it. They need to know how much it has made. And for goodness sake, they need to keep track of every offer they ever had on that domain name. So, you look at the history and you see if you had other offers. If they have been higher, if they have been the same, or if they been that. If the domain has not made any revenue for you, maybe a hundred dollars is the right price to unload it instead of dropping that domain name a year or two from now.
So, a lot of those factors will determine whether you should accept that hundred-dollar offer, try to talk them up to three or four hundred or five hundred, or try to talk them up to five thousand or one thousand.
Michael: Yeah, so that is a lot of data. When you bought it. What was the purchase price? How much revenue does it generate? How many inquiries have you received? How many offer on top of those inquiries? That is a lot of data. How do you keep track of all that data for each of your domain names?
Adam: I use a program called Watch My Domains ISP or Domain Punch. All these tools that we are going to talk about in this video will be available on AdamDicker.com under the Resources tab with some discounts for the viewers.
Michael: Great. AdamDicker.com/Resources. So, you will use a program that is off the shelf to help manage those.
Adam: Yeah, and it allows you to have custom columns. I think it is about 80 bucks or something like that, but it allows you to keep track of your assets and your inventory, and it keeps track of your name servers, your contacts. It makes sure everything is correct. Tells you what is about to expire. I mean it is a good tool to make sure you are managing your portfolio properly. It is like any business, Michael. If you do not have a grip on your inventory, you are not going to survive.
Michael: Okay, so let’s look at this example. I am going to give you a fictitious example. You have registered a domain name three or four years ago. It was one of the speculative ones that you thought could grow into a big business. You paid eight dollars for it, let’s say. It does not generate any revenue. You have received a couple of inquiries and no offers. An offer comes in for one hundred dollars. What do you do? How do you respond in that case?
Adam: In that scenario, I mean being a good domainer is also knowing when to sell. So, in that case, where it has got no potential anymore, no revenue, a couple offers and nothing panned out, I am probably going to try to talk them up to four or five hundred bucks. But if we goes to two or three, I am going to unload it and realize I made over a thousand percent profit. Thrilled.
Michael: Yeah. So, how do you actually respond? Do you say, “Thank you, Mike. Your offer of a hundred dollars has been received, but I am looking for mid-three figures.”
Adam: I would not put it in mid-three figures terms because that sounds too much. Mid-three figures sounds like a lot more than five hundred bucks. So, I would say, “Look, we are at a hundred dollars. I am looking for 650. We are not too far apart. Meet me somewhere in the middle,” and he will come back with 350 or four hundred hopefully.
Michael: Yeah, okay. Well, that definitely sounds doable to me. I will take it.
Adam: Okay, so you will buy it. Good. I knew you were going there and I was ready to sell it to you.
Michael: So if an offer comes in at a higher level. Let’s say it comes in at five hundred dollars, and you paid a significant amount for the domain at auction, let’s say. You paid close to five hundred. Maybe you paid three or four hundred dollars, but you think the domain name is worth five thousand dollars. How much do you counteroffer at or how do you respond to an offer like that?
Adam: Okay, so it is a three to four-hundred-dollar offer.
Michael: Three to four-hundred-dollar domain. The offer came in about what you paid, so it is a three, four, or five-hundred-dollar offer, but you think the domain is worth five thousand.
Adam: Well, I mean based on my experience, if I think it is worth five thousand, I am probably going to target that price range. Now, if I take a look at the stats and all those things that we just talked about do not support what I think, then I have to reevaluate my thought process and price it at something where it will sell, where I can still make a profit on it. So, I mean if it did not make any money, I would probably price it around one thousand dollars. Eight hundred to one thousand because eight or nine hundred sounds a lot cheaper than one thousand. But if it did make money and it is a good domain name, I am going to go back to: “Well, I appreciate your offer, but here is where we need to be.”
Michael: Yeah. And when you say if it is making money, how much does it need to make? I think a lot of people have unrealistic expectations about how much domain parking can generate. What would you think is a reasonable amount to make that would make you think that the domain name is worth more?
Adam: Well, I mean if we paid, let’s say, three hundred bucks for it, it is probably not going to make a lot of money on parking. It is more what do I think the potential is and who are the potential suitors for it, and how do I run an outbound marketing campaign to try to sell this and is this the best price that I have gotten back. So, I mean at that point it is more than just what it can make off parking because it is not going to be a domain that is going to be very profitable off parking, so I am just going to look at the opportunities I have explored for it. If they have not come up with anything I have tried, then I might let it go for cheaper than I would normally.
Michael: Yeah. Are you ever worried about making a counter offer and then having somebody use that as a UDRP data point when they file a case?
Adam: No. I have had I think two or three UDRPs in my twenty-so years of domaining. I have never lost one. Another point of being a good domainer is (A) do not register anything that could be a trademark or is somewhat suspicious and you are unsure about, and (B) know when to fight and know when to turn over the domain name because maybe you made a mistake in your purchases.
Michael: Yeah, all right. If I offer you ten thousand dollars for Avatars.com, how do you respond back?
Adam: First I smile a little bit because I know I have got somewhat of a serious buyer based on the offer. You understand that it may have value and now I have to set your price point to where I would like to get it. So, I need to let you know that: “Look, this is a good domain name. Everything has avatars. Forms have avatars. Blogs have avatars. And there is a movie called Avatar. There are a lot of things that have avatars. And as online gets more and more popular, Avatars is going to be very big. I am going to tell you that I sold Forums.com about five years ago for 500K, and I feel Avatars is a really good domain and a good partnership for that. I am not looking for 500K, but I am definitely looking for six figures plus.”
Michael: So you just spent a majority of the response email to them educating them on why you think it is a mid-six-figure domain name.
Adam: That is because this is not the two to five-thousand-dollar domain name. I can offer to spend some time because I have a buyer who is somewhat educated and has a good budget.
Michael: Yeah, good point. All right, I have done my research before this, so you do own Avatars. So, if anybody is interested in that, I think they can go buy it now for four hundred thousand dollars.
Adam: Yeah, no ten-thousand-dollar offers, please.
Michael: You also own InternetAlerts.com. EstiBot values that domain at 790 dollars. We know that EstiBot does not do a great job in a lot of the cases. Often times it could be right on the money, but basically 50% of the time it is high and 50% of the time it is low, and everybody loves to cite the case where it does not work. You purchased it, I believe, in 2008, but from my research I could not tell if you bought it on the drop or if it was a private sale. I do not believe you hand registered it. If I email you today with an offer for 15 hundred dollars, what is your counter?
Adam: Well, first of all, I did not even know I own that domain name, so it is interesting. I know what I was thinking when I bought it. I do not think I would have bought it in 2008, but I think it would have been later. I think it was originally bought it 2008 and I think I picked it up – now that it is refreshed, I would say I picked it up in 2012 or 2013, when I got into the reputation repair. So, my thought process with it is good and I am going to build a site on it since you brought it back to my attention. It is a business in itself, where I did a ton of reputation repairs, you know, for companies and corporations, and everybody wants an alert as to when their name, their website, their business is mentioned on the Internet, in a blog, or on Google.
So, because of Google Alerts and a lot of people have those, I was going to set up a business on InternetAlerts to alert businesses and sell them a service for 99 dollars per year to let them know when they are being talked about, whether there is a review about them, positive or negative, or whenever there is something. So, I think it is a good business and I would not sell it for 15 hundred bucks.
Adam: I am going to have to make a note of that one right now.
Michael: Seriously, InternetAlerts.com. I thought that was a nice one.
Adam: I have a few others with alerts in them too now that I recall.
Michael: All right, we are going to talk about active sales because you said that 90% of the domains you sell per month are via active outbound sales.
Adam: That is correct.
Michael: So, let’s start with this. Of your 30 thousand domain names in your portfolio, how do you pick which domain names you are going to sell per day, per week, or whatever your timeframe is? How do you even segment out and decide: “I am going to sell this domain name. I am going to start a campaign”?
Adam: So, I have got a couple interesting stories here, but one is it is somewhat random at this point, so I cannot say that that part of my business is organized. I will look through a list and names that I do not bulk into that premium category or names that I do not put over five thousand dollars or ten thousand dollars get pulled out, and then I will look at what is left. So, if I picked something up in a drop for 60 dollars or I picked something up for 35 dollars, those are possible domain names to sell. And when I am buying, I am buying domain names that I am either going to use for a business that I am going to build out or with that potential to resell.
Now, this first story I am going to get into is I have been trying to get my sons into domaining, so I put both of them on this project of selling the domain names. So I taught them how to grab leads and to set up these mailings to send out. Now, I took a lot of flack in the last video from a couple people saying this is spamming. You know what. It is not spamming if you are reaching out to somebody. You are doing all the can spam stuff you can to make sure it is legitimate, but you have to reach out to contacts. There is no other way. I mean maybe it is spamming. Maybe that is the thing, but I have sold a lot of domain names by reaching out to the right people and I do not get a lot of negative spamming.
Michael: Yeah, that is a great question. People call me all the time on my business phone that they look up in the Yellow Pages or the Chamber of Commerce pages, and they say, “Hey Mike, would you like to buy this or can I meet with you and try and sell you this?” That is not spam. I do not know, so that is a good question. I need to ask a lawyer about that.
Adam: Download.net was an outbound lead generation campaign that produces a mid-six-figure sale. So, if they want to call me a spammer for reaching out to ten people and finding one that wants to buy it, I am okay with that. I do not believe it is true because they actually liked it. They were one of ten companies that were interested. Going back to my son. So, I set them up with selling 25-hundred-dollar domain names, which is what we are talking about. I told him, “You need to come up with a list of twenty possible people for each one of these domains on this list.” One has sold two and one has sold one in the last week and a half. They are getting five hundred dollars per sale, so they are extremely happy. They are motivated. And my youngest son, who is fourteen and big into business, came at me already today and said, “Dad, when am I getting the next list? When am I getting the next list?” He has been bugging me for three days, because obviously five hundred dollars to a 16-year-old kid is pretty good.
Michael: That is a lot of money.
Adam: It is good. It is fair.
Michael: So, right now you are peeling off a small number of domains for your two boys. So, five to ten domains. You say, “Here, pick one of these five or ten and go sell it.”
Adam: I usually give them a list of about twenty to thirty, and they split them up, and then they send them out. They have even had a couple of their friends get involved too, because they like money as well.
Michael: So they are actually contacting twenty people per domain name.
Michael: And then they are only converting one of those twenty, for example, or two of the twenty, and then they are done. They are not going to reach out more on those domain names. They need a fresh list in order to contact.
Adam: Yeah. I mean there was one where my son was upset because he sent out twenty and only had four opens on the list. But I said relax, and one of those four bought it. So, that is how it goes. I mean that is a 25-hundred-dollar domain name and – what – find twenty emails using tools that I am going to provide with you. We can talk about the tools as well. One of the tools we are going to talk about is Scout Places, which is what they are using to find the buyers, and maybe we will do a video later on how to use it.
Michael: Yeah, that would be great.
Adam: Amazing tool for finding local leads and for businesses.
Michael: So your process is the same as the process that you taught your sons. You pick a list of about twenty domain names. You find approximately twenty people who are very targeted, who might be interested in each of the twenty domain names. You grab their contact information, and then you send them emails offering the domain name for sale.
Adam: Yeah. I mean it is more of an HTML email that says, “Look, SeattleLocksmith is available. It is this price. This many people are in Google, looking for this domain name every day. This many people are currently buying ads for it. You are one of the people buying ads for it, but wouldn’t you just rather own the domain name and have it ranked? And here we go.” And sometimes I build the sites out. Sometimes I just sell the domain names.
Michael: But that is a keyword domain name. You are not reaching out with NAPZ.com and pulling that kind of information, are you?
Adam: Yes, sometimes I am. And I know we were going to come back to how to sell acronym names, but this may be the time to talk about it.
Michael: Yeah, let’s talk about that.
Adam: So, there is something you can do in Google to find all companies that are listed that have those acronyms in their names. So, for example, you type in ‘AllinURL: CMSI’, and then you are going to find all companies with those four words, like Complete Micro Solutions, Inc., or whatever it is that has CMSI either in their URL that they are indexed for or their company name. And then you can extract those companies and then you have all the companies that are going to be interested in CMSI. The other thing you can do is go to some of the sites, like LinkedIn. Type in ‘LinkedIn.com/CMSI’. Who is that company that wants to be branded by it? And you can go to Facebook. You can go everywhere, and you can find all the companies that are listed by that, and I have sold quite a few domains using the AllinURL search parameter in Google. It works in Bing and everywhere else too, so it is something that is a huge key point.
And before I forget, something else we need to mention is back order all the domains that you sell. I have sold the same domain four times to the same guy, and it has happened on numerous occasions, where I sold the same name over and over again. And sometimes I just sold it and got it back.
Michael: Yeah, you have mentioned that previously. I always find that funny when you say that.
Adam: Well, Bill (Unclear 1:07:26.7) told me, on all the videos, he found that to be one of the best tips that I have put out.
Michael: So, when one of your sons sold two of the twenty domain names and one of your sons sold one of the twenty domain names, is that generally the kind of conversion rate you would expect from an outbound sales process – that five to ten percent of the leads of any campaign is going to convert to a sale?
Adam: Well, it was 15%. Three out of the twenty.
Michael: No, it was three out of forty.
Adam: No, I only gave them one list. They picked out the same list. They got to split it, but I mean 15% is pretty good.
Michael: Yeah, that is very good.
Adam: So I mean I cannot complain about it. And listen, it took them, with the software, Scout Places, literally about five minutes for each one, because I can give them the email. They just add the database, and then I am the one that handles the sales. I close the sales once they inquire. So, getting them to inquire is the hard part, but once I get them, I can close them pretty well.
Michael: Yeah. Do you remember the last domain name or one of the domain names that your sons sold that went through that process?
Adam: I will think about it and I will have it by the end of the interview.
Michael: Okay. All right, I have the problem all the time. Somebody asks me a question and I just cannot pull it up.
Adam: The problem is there is so many domain names that I am asked about and talked about every day that sometimes it is hard.
Michael: So, last week I published a tutorial and case study on how to actively sell domain names using the EstiBot lead generation tool for domain names. So, very similar, it sounds like, to Scout Places – the program that you are talked about. I used four domain names as an example within the case study because I not only wanted to show the steps you would use in using the EstiBot tool, whether people want to use it or not, but then they can learn how that process can be done manually, and then they can actually see the results of four domain names. In each of four domain names, I only contacted between four and ten end users to ask them if they were interested in buying the domain name. Luke was on, who runs EstiBot.com and owns EstiBot.com, and posted in the comments that typically thirty to forty contacts are necessary to get one response back.
Do you agree with that general process? That in order to do active outbound sales, it is a numbers game and you need to contact more people.
Adam: I mean listen, I agree that four is not enough, but I also think that contacting four of the right people, targeted people that you searched our manually, you have a better chance of closing it. It is just simple, but I mean thirty is definitely a good number to work with, so I think Luke is on the right path. I think your chances of closing are better. Your chances of getting more open rates are better, and hopefully you find somebody. I mean you also have to get to the right people. You cannot just take any email address because it may not go to the right person.
Michael: So you are saying do not just pull the registrant information off the WhoIS and contact them. You need to go to the website and look for contact information that might be on the website, where it might not be updated on the WhoIS, or find the President information. Something like that?
Adam: Yeah, I mean you have got to get to the decision maker. We have talked about this before, where sometimes I have gone to LinkedIn and I have got the guy who is the financial advisor. I have spoken to him, and then I said, “Well, you are not the right guy to talk to. We should talk to the CEO, Michael.” He said, “Yeah, yeah, that is who you should talk to.” And then I call the CEO and I say, “Fred in finance told me to give you a call,” and then I get right through. So, sometimes that is the way to go, but generally, yeah, if you stick to smaller businesses, where they are not going to have huge offices and secretaries, like maybe smalltime electrician companies or people that fix furnaces, some of these guys in most of these cities have an alliance where all their companies are listed, like Electricians of Seattle. They have this thing they have to belong to. A member board. And all their companies are listed.
Now, you get that information and you have got a much better chance of getting them. Like the Plumbers’ Association. Things like that. It is all public anyway.
Michael: Is that what I did wrong on my tutorial last week, Adam? Did I just not contact enough people or maybe I did not get the right people because I did not reach out to a Plumbing Association or things like that?
Adam: Yeah. First of all, you have to pick the right industries. There are certain industries where they are not extremely domain or Internet savvy, and then there are other things where you may be able to find somebody who is Internet savvy, but they do not have a domain name yet. So, those are good ones to target because they need a domain name, and if they can get one targeting their business, it is even better.
Michael: What are some good example of industries that get domain names and they need them?
Adam: Sprinklers. Sprinklers are good. Locksmiths are very good. Tutors are very good. Anybody that offers a service that is somewhat computer oriented or things like that. Anybody that does custom work in your house, like custom closets. Electricians. Painters. They might not be one hundred percent computer literate, but they are going to know the benefit of the Internet and you can explain to them the bottom line is you can get more customers. I mean that takes me into lead generation, which I do a lot of, but we will get to that when you are ready.
Michael: So, you mentioned the program, Scout Places. Is that the name of the program that you use for pulling contact information?
Adam: It is.
Michael: So, how does that work? When you find a domain name that you are interested in selling, do you type the keywords into Scout Places and it runs off like EstiBot and tries to find people or companies that might be interested or have similar domain names?
Adam: So, it is even cooler than that. What it does is, if you type in – and I will just take an example – ‘Seattle Roofers’. I am doing this for you because you are in Seattle, so there you go. So, I will type in ‘Seattle Roofer’. It will give me a whole list of roofers in Seattle. It will tell me, and this is important information because I have made a lot of money using this for other ways too besides domain names. It will tell me all their Facebook information, how many likes they have, if they have a custom username, and if they have a custom cover. A lot of times they will not have a custom cover, so I will sell them that. They will not have a custom username. I will sell them that. And then I can see if they have that thing where it goes Facebook.com/Pages/256719, and that means they do not have a custom username, so like I said, I will sell them that, but it also tells me what they have got listed, if they have a website or not, and their email address and their phone number.
So, if they do not have a website, then I know to target those for Seattle roofers and try to sell them that, but in the meantime, I can also sell them a different domain name. So, you may be able to get SeattleRoofer and SeattleRoofers and sell them both in that batch. It is a really good tool for that, but the chances. I have got people in my call center that are making a couple thousand dollars per day just running this tool and calling people out because it is really valuable. Good information. And sometimes you may find people have a domain name, but the site stinks, so I will send them a note, saying right in the subject line, “Your website is ugly.” And then they read it and then I tell them: “Well, we run WeFixYourUglyWebsite.com. We can help you out, and here is what we can do for you.”
So, you customize it. Even though it is mean and it says you have an ugly website, people usually know when they have an ugly website that needs work.
Michael: Yeah, definitely.
Adam: But Scout Places is very good.
Michael: So, when I look up contacts who might be interested in a domain name, if they have a website, I cannot decide. Sometimes they might want to upgrade their domain name, or if they do not have a website, maybe they want to get on the Internet. Should I just contact them all?
Adam: Well, a lot of times people will want to change their branding, so you will have to explain to them the benefits of also having a keyword-rich domain name that targets people and their businesses that are looking for leads. And you can do that by telling them 150 people per month go to this site based on your Google findings and say, “Here is what you can get. These are potential leads you can get.” It is up to you to close it. Now, you can either do lead generation or you can sell them the domain name and have them setup a lead form. Sometimes you can sell them the domain name and setup the lead form for them as well. And there are themes that we can talk about there. The best ones are Rockstar Themes for WordPress. Very good. Will also be listed on the Software page.
Michael: Excellent. So, you have said it before on Domain Sherpa that anybody can buy a domain name, but the making money is in the negotiation. So you first need to know your acquisition cost, your floor price for negotiations, your other offers, your inquiries, your revenue from parking, or any other sources. When you start negotiating, are there any important facts besides knowing who you are negotiating with that are important for that negotiation?
Adam: Well, knowing who you are negotiating with and knowing the background of the domain name as far as you have owned it are the two critical pieces. And then the only other thing is what business potential do you see the domain name having on its own with or without this buyer. Like do you see this being a ten or twenty-thousand or fifty-thousand domain if somebody builds the right business on it? And I am not talking about somebody just bringing a random name and turning into Google. I am talking about do you see any potential for this domain name on its own merit.
Michael: Yeah, great point. It is an often stated axiom that people who are inquiring set the price, but you and I know that if it is a three-letter domain, it likely has close to a hundred-thousand-dollar price tag. If it is a two-letter .COM, it likely has mid-six figures. How do you know if you are selling a domain name for the appropriate price when you are negotiating versus selling for just an okay price?
Adam: Well, there are two things to that. That is why you have the buddy who you can talk to as well, who can set you straight. And you may think it is a five-hundred-thousand-dollar domain name and he is thinking you will be lucky if you get 150, so take it. So there is that, and then the other thing is you may never know. I mean the bottom line is if you are happy with the price of the domain name, do not ever look back. Do not have any regrets, and do not look at what the thing sells for ten years from now because it is not ten years from now. If we all had a time machine, yeah, we would sell it for 2024 prices or 2050 prices, but we do not. So, sell it for something that you would be happy with that, no matter what happens in the future, you will not be kicking yourself later, but you have made money on it. I mean that is how you have got to look at it.
I mean I have had domains go like that. I have had domains where I sold them for 150 or 200 thousand dollars and the guy offered it back to me for 90 thousand dollars. So, sometimes you win and sometimes you lose. I mean you take the chance, but make sure when you are done, you can sleep at night and you feel good about the price you got for the domain name. Nothing else matters.
Michael: Yeah. When you sold that domain name for 200 thousand and were offered it back for 90 thousand, did you buy it back?
Adam: No. At the time, I did not have the cash flow to buy it back. It is probably still available.
Michael: Yeah. I purchased, in auction, a three-word domain name that describes a product. Exactly what you have discussed in the past. Actually it is a service for online marketing. And I was just today contacted by the prior registrant saying that they let it expire by accident and they offered me a hundred dollars, and I responded back saying that I have got more invested in it and I am not interested in selling it. And so, they responded back: “Two hundred dollars. Best offer.” How do you typically handle inquiries like that, where they know the value, but they are just not interested in moving up very fast?
Adam: Did you confirm it was the previous owner?
Michael: I did.
Michael: And I did that through Domain Tools WhoIS History, so you can go back in time and look at it.
Adam: That said, I really would not care. I mean I am a pretty easy going, heartfelt guy, but I mean the bottom line is I am running a business and a lot of the domains that we all own were owned by somebody else at one time or another. So, I would treat that domain name the same as I would if I hand registered it and I was trying to sell it. I mean unless it is a charity or unless it is something that I really feel bad about. I mean it is fine, but these people have stationary. They have got flyers. They have got business cards. They have got all their branding and everything else. They will need to pony up or they are going to have to change all their stationary. The bottom line is I am not going to think about that either. I am running a business and I am going to sell domains for what I think they are worth regardless of the situation before, because like I said, all of us have domains that we picked up from drops. We are not going to return them all.
Michael: Yeah. Going against what many other Domain Sherpas on the Domain Sherpa Review will say, you often suggest building a website on the domain name, getting it ranked, and then actively selling it. Do you do that a lot?
Adam: I do, do that a lot.
Michael: How many domain names would you say you sell per month that you do that?
Michael: Half of them.
Michael: So, half of the twenty to thirty domain names that you sell per month you have actually ranked a website for some keyword phrase.
Adam: Maybe more than half, but the benefit is I have a large web design team that does SEO and content writing. I mean I have 45 developers, so I can afford to do that, to build them out. Now, sites like – let me see what site it is. So, a lead generation site – an example of one that I would do is if you look at OakRidgesDentist.com. I will let you pull that up and I will keep talking. So something like that. It is not hard for us to build. I can build it for people watching the video for like 29 bucks. And it is not a plug for me to build it. We do it through NicheWebsites.com. But the big thing is people have said to me, “Well, I can do these myself,” and I go: “Yeah, but what is your time worth? Spend your time selling them. Let me build them while you are sleeping, and then you worry about selling them for 15 hundred or 25 hundred bucks.” And that is all it is.
Yeah, you can use the themes that I told you about. Rockstar Themes that are really good. And you can build them. Upload them. Customize them yourself, or I can do one hundred in a night and you can spend the rest of the year selling those domain names.
Michael: Did you say 29 dollars?
Adam: Yeah, 29.
Michael: Wow. So it is just a theme and you knock them out.
Adam: Yeah, that is it.
Michael: And because it is a keyword phrase that is not too hard to rank for, it is OakRidgeDentist or SeattleDentist, would you say SeattleDentist is just as easy to build a site a get it ranked?
Adam: I mean yeah, it is going to be a little harder. The longer the domain name, the easier it is to get it ranked. Obviously longtail keywords are easy to rank. So, if I have got something like SeattleBainbridgeIslandHousePainter, or something like that, it is very specific. I will be able to sell it. There are a lot of painters in Bainbridge Island, and it is a target domain name. It does not have to be a two-word domain name. It could be a three or four-word. I mean there is still lots of money in these domain names. And like I said, if you buy it for ten bucks, I build it out for 29 or whatever. You have got forty bucks in the domain name. If you sell it for a few hundred bucks, you have made ten times your profit. I mean it is not that hard.
People are always looking for that quick fix that is going to make them a ton of money at once, but you do not have to. You can do the old rinse and repeat, where you do ten or fifteen of them for like two hundred bucks or three hundred bucks. And you are laughing. You have got good money for that month, and you go to the next month.
Michael: Yeah, definitely. And when you are building out those domain names and getting them ranked, are they usually geo plus service .COM domain names?
Adam: I like those, but again, you have got to target services that will be interested in those. I use a lot of them for lead generation. So, I will build out a site like that. I will get a hold of a dentist. Dentists are one those who will pay like 150 dollars per new client because a new client to a dentist are going to come back all the time. They are going to bring their family, so it is good for lead generation. So, some of those I will do and I will set them up on a lead generation platform, and I will say, “You are going to pay me 20% for every new client I get you, but you are not paying me anything if I do not get you new clients.” And I find that is better than selling domain names. It is almost like leasing out the clients, which is good too, and I do it for 31 hundred different companies right now that I am doing lead generation for.
Michael: Wow. So, when you use Scout Places on one of those geo domain names that maybe your sons are helping you generate leads for and then emailing out, when you get all the information out of Scout Places, what email system do you use to contact them? Do you put them into a Constant Contact or a Mail Chimp in order to email them and give them an opt-out link?
Adam: Yeah, definitely.
Michael: You do.
Adam: Definitely. I mean I use a few different ones. I use AWeber. I use Benchmark. You can use any one you want. It does not really matter. Just find one that offers all of the protection so that it is not completely spam with no opt-in or no opt-out. I mean make sure you have all the information you can so it is good. And when you sign up for the account, make sure you tell them that you are using an opt-in list, because some of them will ask you and they will decline you if you tell them you are not.
Michael: So, if you input the people into AWeber, let’s say, and you create a campaign that is related to some geo plus service .COM, you title that campaign so the people are in that list, or you create a list so the people are in that list, and then you send it out. You get the responses back to your email address?
Adam: I do, yes.
Michael: If anybody hits reply, they go to Adam@DCG.com.
Adam: Well, yeah, or I would not use Adam@DCG.com. I would use a different domain name that you setup specifically for this. So, it could be something like CanadianDomainRegistry or AmericaDomains. Use something else so that if it does cause a problem for you with spam, you are not going to lose your main domain name. I have never had it happen before and I have been doing it for a couple years, but you never know.
Michael: Yeah, and so you will use that for all your campaigns.
Adam: Do not use a Gmail or a Hotmail, or Rogers, or anything like that. Some people still have the old ones. Myspace, for goodness sakes, or AOL. But make sure you set up a specific domain specifically for your outbound sales stuff. And you may want to place yourself in the middle, like Domain Brokerage Service or something like that, and go that way instead of another way.
Michael: Yeah, okay, that makes sense. So then you use a third party email service. They send it out.
Adam: Hold on, that is important, so do not skip past that. You can use a program called Send Blaster. Send Blast Pro is a program that does not use your ISP service. It uses their SMTP service, so it is always coming out of their service and you will not get blocked from your ISP service if you are only allowed one hundred emails a day or whatever it is.
Michael: But why do you need Send Blaster if you are using AWeber or Mail Chimp, or one of those third party mailing services?
Adam: Okay, sometimes I will use Send Blaster instead, because you do not have to pay all the time for all these things, and they have a bunch of free templates that are really good and they have all the spam stuff – the tracking, the geo target. They have got everything built into Send Blaster. It is just another option to AWeber or whatever you are going to use.
Michael: Got you. So it sends it out from a third party server. It tracks the opens. It tracks delivery.
Adam: It tracks everything.
Michael: Just like, likely, AWeber and Mail Chimp and those services do as well.
Michael: Okay, so that is an alternative to those.
Adam: Sometimes you are going to get more than one response to a domain name. You are going to get three or four people that are interested.
Michael: Great point. So, if you send out a domain name and you are saying, “I am asking 650 for this developed website with SeattleSprinklers.com,” and three people respond back and say, “I will take it,” or two respond back and say, “I will take it,” and one response back says, “I am not sure about this. Tell me more,” how do you respond to all three?
Adam: So, what I will do is I will take the first person that responded. I will send them the payment link. Hopefully they will pay for the domain name, and then I will go back at the second person and say, “I have SeattleSprinkler or SeattleSprinklers,” or whatever the other one is, and obviously I will try to secure it first, or I have this or that, or whatever is something close to it that you can get them because they obviously are willing to put the money up for a domain name. And sometimes you will get lucky and get two or three sales out of one mailing. That has happened.
Michael: Yeah. So, the payment link, do you just use NicheWebsites.com, because you are selling the domain name and building out a website, or what payment system do you use?
Adam: It depends on the customer’s comfort level. Because it is me and I am well known in the industry and I have got things that people can Google me, sometimes I will say, “Look, I am not going to rip you off. You can Google me. You can see the picture matches. We can do it directly. You can pay me through PayPal. I will turn it over the same day. I will set it up for you. Or if you are uncomfortable with that, I understand because you do not know me from Adam, which is a literal joke, then you can go ahead and we can use Escrow.com if you are uncomfortable.”
Michael: Okay. And when you say you will set it up for them, do you create like a GoDaddy account for them and push it into that account, and then you say, “Here is your login information,” and you are done?
Adam: No, I will go farther because I will go in. I will do all that, but I will probably set them up at HostGator. I will do all that, and then not only that. First I will give them a hosting link to sign up, which is an affiliate link, so I can make money on them paying for the year account. Then I will set it up. I will push it. I will set the FTP up. I will put the domain. I will upload the site. And then I will ask them about other services that may be interested in, because it does not stop at the domain sale. It just starts with that relationship you are creating.
Michael: Yeah, great point, and that is the GoDaddy model as well.
Adam: That is not where I got it, by the way. But then they need a Facebook Page. They may want a Twitter account. They may want me to help them build their business. They may want some more SEO. There is lots of stuff that they may want that they may not even know they want until you tell them about it, and there is lots of money to be made.
Michael: Yeah, and I am sure they will appreciate it, because I know a lot of smaller type businesses that when they are out on the road, going house to house, they do not have time to think about the online experience. And having somebody that can set it up for them soup to nuts is helpful.
Adam: And they want to be offered a listing in Google Local Pages or whatever it is called these days. I mean there is a lot of stuff. Yahoo. There is stuff that they want, exposure that they want or need for their business that could bring them more clients. And a lot of them are willing to pay. They just do not know how or where to start.
Michael: Yeah, great point. All right, what other tactics haven’t we gone over that we mentioned we were going to? We talked about four letters. We talked about how you reach acronym buyers. We talked about your process for outbounds. Let’s say that domain investors only have one hundred domain names that they have registered. How many domain names per week do you think that they should focus on if they are doing it part-time?
Adam: It really depends on if those hundred are the right hundred. And a lot of people, if they go out and start out and they want to register fifty or one hundred or twenty domain names, they are not doing enough research. And from what I have seen, they may have one hundred domain name. They may think they are extremely valuable, like the guy I talked to last night, but they are just not. None of them are sellable. A lot of people have had to scrap things. When I talk to people, a lot of people appreciate the honesty when I tell them: “Look, unfortunately none of these are good, but there is hope for you. We can start again. We will try to get rid of as much as we can of this stuff,” and I tell them how they can do it, but the bottom line is some of them may need to start over.
Adam: They need to pick a niche. You cannot just go out and scramble and just grab anything you think because it is a good price or a good name. People need niches. When they are starting out, stick to things that you know. So, I know you are big into PR and SEO. So, stick to domains and things that you understand, that you know, and then you will be able to sell them. Like I cannot sell gardening domains like Shane. I mean I do not know anything about gardening. I have respect for him because he knows the industry, but I will not go into domains that I do not know anything about.
Michael: Yeah, great point. And is it fair? We talked earlier that you would require your sons who are going through this process to find at least twenty potential buyers for a domain name. Is it fair to tell people do not buy a domain name that you plan on flipping unless you know you can find twenty potential buyers before you buy it?
Adam: Well, that is more than fair, especially if that is what their target is and it is reselling the domain names. Do not buy a domain name that you may only have one or no potential buyers for, and that is why I say always buy names that you think somebody can open and start a business on. And it could be a three or four-word. It could be AlgebraMathTutor or HighSchoolAlgebraTutor. It could be anything, but make sure you pick something that a business could start up and run on. Do not pick something just because you think it sounds good or because people like chocolate chip. I mean do not take a name that does not make any sense. I mean it has to be something that you would consider opening up a business on because the name is that good.
Michael: Yeah, definitely.
Adam: And if you cannot, do not even bother. Because if you cannot figure out how somebody would want a business on it, nobody else will be able to.
Michael: All right. Adam, any final advice for Domain Sherpa audience on other tactics for successfully selling domain names that we have not talked about?
Adam: I am trying to think. I mean there are all kinds of stuff, but I mean I am looking at my list because I made some lists to make sure we did not miss any key points. I mean the main thing is obviously to understand sales and negotiation. Educate yourself first. Read some books by Zig Ziglar. Find some of those on closing sales. Understand that. Buy smart and, for all my Australian buddies, do not be a bludger, because bludgers do not succeed in this business.
Michael: Yeah. And you have to do your outreach. You cannot just wait for big fish sales to come to you.
Adam: No, big fish may come to you, but in the meantime there is going to be some little minnows swimming up for some other stuff and you are going to have to chase them with a net because they are just swimming up for food. You have got to grab them in the net and close them.
Michael: All right. Now, I am sure I missed some questions. The audience is watching right now and they are thinking: “Oh, I wish Mike would have asked this question.” Now is your opportunity. Post that question in the comments section below this video and I will ask Adam to come back and answer as many as he can. If we get enough questions, I will bring Adam back on the show and we will walk through those questions. This is also the point in the conversation where I ask the audience to take action. The first thing you should do is post a question on that area that I did not cover, or you could just simply say thank you to Adam so that you can be seen as saying thank you so that other people know to thank Adam as well. Adam has taken a significant amount of time out of his schedule to brainstorm with me, to prepare, to record this conversation, so please take a moment to acknowledge it.
Adam, you and I will be at a couple of conferences coming up. You have mentioned one of the tactics was get to know people. Use them as trusted resources as you are looking at domain names. Which conferences are you going to coming up?
Adam: So, I have got some really good opportunities in the near future. First of all, I am teaching lots of courses on domaining in about ten or fifteen different countries in the next little while. And some of those courses are on AdamDicker.com. How to Be a Successful Domain Broker. Domain Flipping. They are pretty interesting courses. But as far as conferences, yes, definitely go to conferences. They are all good. I am not going to pick one over the other. The main thing is the networking. Meet the people. I was asked to go down by a good friend of mine, Jerry Shoemaker. Jeremy Shoemaker is really big in affiliate marketing, to do a conference with him around the beginning of May. He has also arranged for me to have a sit-down in Omaha, Nebraska with Warren Buffet, and I am looking forward to that.
I am doing Domain Fest at the end of March. Targeted Traffic in October. I think I am doing Pub Con, hopefully with you, Michael, in October as well. Affiliate Summit, and I have been asked to do some writing for Inc. Magazine, which is going to be kind of interesting. So, I have got that stuff coming up. I am looking forward to it. As always, I like to give out my contact information to the listeners. I was going to say readers, but they are listening hopefully and watching. So, when I say this, I mean it. Honestly, come and do not be shy to contact me. On Facebook, it is Facebook.com/DomainExpert. Twitter.com/AdamDicker. LinkedIn.com/AdamDicker. Add me to LinkedIn. Build your network. Skype, you can reach me at Adam.Dicker. My cell is (416) 884-0535. My email is Adam@DCG.com. You have no reason and no excuse not to get help and not to contact me.
I also do a conference call thing, where you can go to AdamDicker.com and hit the Contact page, and you can talk to me for, I think it is, five bucks per minute. Three hundred bucks per hour. It is done through Clarity FM. I spent about three thousand to five thousand dollars learning the ropes. If you spend three hundred bucks and spend an hour with me, you will be far better off and you will not waste a lot of money. I would also like to offer a free DN Forum membership at the end of this video, so feel free to email me at Adam@DCG.com if you want that free DN Forum membership. There are no strings attached. And if you got anything from this video and you enjoyed it, like Michael said, please do us a favor and leave a comment so we know it is valuable information and we will do it again for you.
Michael: Adam, very generous of you to offer that DN Forum member, and of course, all of your time and all the different opportunities that people have to contact you.
Adam Dicker, CEO of Domain Consulting Group, DNForum.com, NicheWebsites.com, and a host of additional businesses that I love to find out about. Thanks for coming back on the show, explaining how to improve sales for three and four-figure domain names, and thanks for being a Domain Sherpa for others.
Adam: Thank you very much.
Michael: Thank you all for watching. We’ll see you next time.
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