Selling a Domain Name to an End User

One of the best ways to profit from the Internet real estate market is to sell domain names to end-users. By general definition an end-user is an individual who uses a product and can also be referred to as a consumer based on their position in the sales cycle. In relation to domain names, the end-user is the individual or organization that purchases the name and typically has a business model and/or plan in which they will utilize the domain. Often times a domain will be used for a retail business and in that case the buyer has determined the domain name will help profitability and therefore may be willing to pay a premium for it.

As a domainer, there are certain things you should keep in mind when selling a name to an end-user. Take for example the story of the former owner of Healthify.com, Steve, as reported by the Domain Name Wire. Steve had owned Healthify.com for several years when one day he was contacted by a man who represented himself simply as an individual who wanted to purchase his domain. His initial offer to Steve was $7000 and after some negotiating said he could go up to $8,000. But Steve had previously decided he would not accept anything less than $15,000 for the name and so he declined the offer.

This story could have ended with Steve selling his domain name for $8,000, but Steve knew better. Shortly after ending the telephone call, Steve searched Google and found that General Mills was promoting a 'healthify' service on one of its websites. General Mills is a multinational corporation with a clear ability to pay top dollar for a domain name. Steve later received an e-mail from the same man who had wanted to buy his domain name. Not once did the individual let on that he was inquiring for General Mills. Negotiations went back and forth with Steve turning down offer after offer over a course of several weeks. In the end Steve sold the domain name for $15,000.

The key lesson here is things are not always as they seem. Potential buyers may not divulge who they are and why they want your domain; information which would help you sell for the highest possible price. So when selling your domain name you need to do some research on your own. Search keywords, phrases, and the concepts associated with the domain name you are trying to sell. You may very well increase the amount of money you receive for your domain.