Selling your domain names for cash

If a total stranger writes you an e-mail message asking you how much you’d be willing to sell your domain for, what would you do?

Assuming the name sought by this stranger has value, you may want to evaluate the situation before you answer back.

It’s very likely the individual sending you the e-mail is a go-between which means you’re unable to know for sure who the “real” buyer is. Domain name go-betweens range from internet consultants to technology lawyers. They’re usually with a clear mandate to get your precious name for next to nothing and of course, as fast as possible.

These go-betweens may try the following in order to make you agree to sell your precious domain name… way below market value:

• They won’t offer you a specific price. They figure you’ll eventually settle for the amount of money you “need” and not the (usually much higher) price the name is worth;
• Whatever price you suggest, they’ll immediately answer it’s too high… or sometimes, they won’t answer at all;
• They’ll usually imply your domain name has little value. This is a basic manipulation strategy to psych you into lowering your expectations;
• They’ll make sure their identity can’t be fully traced. As such, any “prospective buyer” you can’t trace should be considered suspect and treated accordingly;
• They’ll eventually try to convince you to provide stats for the name. In most cases, the only goal is to use the numbers against you in the negotiation process (or gain free market intelligence);
• They’ll protect the identity of the “real” buyer at all costs. Common sense prevents them from telling you they have deeper pockets than yours.

As you can see, there’s nothing good for you in store when one of these go-betweens pops up in your inbox. If it’s an amateur trying to test your domain name management acumen, delete the message without answering. You deserve to discuss with serious people, only.

So who are these nice people who will negotiate in good faith?

• They -very clearly- tell you who they are and make sure you understand the importance of the talks before they start;
• They offer you a price upfront, it’s usually close to being on the money. You know these people did their homework;
• They’ll usually explain exactly what the domain name will be used for and why it’s important to them. They don’t want to get sued afterwards for holding back significant information;
• If you’re serious, consistent and straightforward, they prefer not to go through an escrow service and they’ll transfer the money directly to your bank account. It’s faster and there’s more money for you;
• If they feel it’s relevant, they’ll sometimes insist that you take a few days to think about your willingness to sell so when the time comes, you’ll be ready to depart from your precious name.

Whatever you choose to do with your domain name, make sure to insist on getting cash money (direct deposit or otherwise) for your transfer. Do not accept stocks of a company unless it’s very reputable! Credit card payments, even through PayPal can cause problems even after you received the funds so be careful.

Escrow services are usually intended for name changing hands for amounts ranging roughly from 250$ to 25k$. Under that, it’s better to use PayPal and over that, it’s the almost always through direct money transfer to your bank account.

Over and above all that’s been advised here, never undersell a domain name! Even if it hasn’t fully realized it’s potential, you name could be worth more than you think.

Major companies like General Electric, Procter and Gamble, Kraft and Johnson & Johnson all have domain name acquisition strategies. Make sure you ask the right amount before you let your gems go for a few k$.

Back when the web was just emerging, c|net snapped up huge names for very low prices, such as:

• SEARCH.COM for $7,000
• DOWNLOAD.COM for $20,000
• TV.COM for $15,000

In today’s market, these names are worth a fortune, litterally.

In tomorrows market, keep in mind your domain names are likely to gain in value. If you asked the previous owner of tv.com if he’d sell his name -today- for 15k$, he’d be very amused! I heard at the time, he was happy with the price, though… oh well.

Protect your best names and market them intelligently. Only when you lack inspiration should you consider money for good domains. At that point, don’t sell yourself short.