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The Art of Getting a 3 Letter Domain Name

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Re: The Art of Getting a 3 Letter Domain Name

#21

Post by larrys »

As someone who both buys and sells domain names (and particularly 3 letter .com's since 1996) let me point a few things out. I might also mention that I am the go to guy for a few well known VC's that you have heard of although that is not my main business at all (although it could be it just doesn't pay that well compared to other things I spend time on.)

This statement:

"Within a day or 2 we started getting responses. All the responses were the same and were in the format of “Sure we are willing to sell, we expect a bid in the mid to low 7 figures."

Is total BS and hyperbole. People in the business can be jerks and unreasonable for sure but it would be more likely for someone to "ask" for 100k or simply say "domain is not for sale" than to say "7 figures" (2 letter, possible, 3 letter, specifically "all of the responses", no. Unless of course you emailed the same people (they may have different email address for the same owner) and they were pulling your chain.) Exaggeration.

"When the price for a domain you like is really high, consider lease-to-buy options to give you flexibility."

I never recommend this it's normally a way to make sure you pay an exorbitant price for a domain.

"Don’t get attached to any domain name. "

Great advice. This is absolutely true.

"When you find something you like, move FAST and close it as soon as possible. Often times you might not have a second chance."

I can say that I have closed a number of sales by simply making the buyer feel that someone else wants the same name, coincidentally the same day someone else inquired! Total bullshit. Good leads are extremely infrequent. Possible but more likely you are being played with.

"Good domain names get offers many times a week. Think about how you’ll make your email stand out from the rest."

In general not true. There is no serious bidding war going on for good domain names every day. There are people for sure that email everyone and anyone with non serious offers and to people who own many names it appears to be that you are getting offers all the time. But you might get no inquires on a particular good domain name in 1 year or 5. The only way you need to stand out is to appear to be a real buyer and act like a real buyer. Unfortunately if you are sending a bunch of emails that's going to be hard to do.

"Use domainworth.com to get a rough idea of how much their domain is worth."

Totally meaningless. By the way never try to negotiate with a seller quoting any estimate value. With very few exceptions means nothing. Very few exceptions means there are always outlier cases.

"Use instantdomainsearch.com and leandomainsearch.com to help you check your desired names or come up with new ones.

Both good ideas.

Re: The Art of Getting a 3 Letter Domain Name

#22

Post by fsckin »

GoodIntentions wrote: post #7
ChrisNorstrom wrote: post #4

I sold RebelSpirits.com for $500 to a winery business owner last year. We scanned and emailed each other our drivers licenses and he sent a check for $500 in the mail. I released the domain to him after I deposited the check. His check was from a major bank. Can some one tell me if my method was smart or stupid? What could have gone wrong other than check fraud?

If someone had stolen ID _and_ checkbook, it might not have been the person you thought you were dealing with. I don't know if you looked into the winery / called it or whatever, but I'd have wanted some way to establish with fair certainty who I was dealing with beforehand. ( and probably would have accepted a check like you did given the amount. ) A surprising number of people don't know a check can be pulled back…

Bitcoin is exceedingly unlikely to be reversed after 6 confirmations (45 minutes or so).

Re: The Art of Getting a 3 Letter Domain Name

#23

Post by larrys »

GoodIntentions wrote: post #3

Three things jump out at me in that post: 1. Using any online 'appraisal service' or what have you as a pricing guideline is not something you can depend on. There have been numerous tools like this and sometimes their results are so wrong it is funny. 2. People who own domains get do get a lot of mail, often of the "let me scam you" variety. Standing out from these is the trick. 3. A good domain name is worthless wi…

"Standing out from these is the trick."

It's not hard to stand out. You just have to be realistic about the price you are willing to pay.

Domain sellers are all over the map. Some are highly rational and some are gamblers. The gamblers are willing to wait for the big fish to come along and pass up an offer that could be 5 times the amount that another domain owner would accept.

Agree with the domain appraisal service comment it can easily mislead you in either direction. The problem is if you know nothing about this you won't know which direction that was.

Re: The Art of Getting a 3 Letter Domain Name

#24

Post by larrys »

ChrisNorstrom wrote: post #4

I sold RebelSpirits.com for $500 to a winery business owner last year. We scanned and emailed each other our drivers licenses and he sent a check for $500 in the mail. I released the domain to him after I deposited the check. His check was from a major bank. Can some one tell me if my method was smart or stupid? What could have gone wrong other than check fraud?

(Read my other comments this is what I do).

RebelSpirits.com for $500 - it's worth more than that. The winery got away cheap. Did they approach you? If so you left money on the table.

"We scanned and emailed each other our drivers licenses and he sent a check for $500 in the mail."

Use escrow.com for this. Cheap and protects both parties. This is what they do and everyone uses them.

Re: The Art of Getting a 3 Letter Domain Name

#25

Post by geargrinder »

ChrisNorstrom wrote: post #4

I sold RebelSpirits.com for $500 to a winery business owner last year. We scanned and emailed each other our drivers licenses and he sent a check for $500 in the mail. I released the domain to him after I deposited the check. His check was from a major bank. Can some one tell me if my method was smart or stupid? What could have gone wrong other than check fraud?

May have been more dangerous for him than for you. An unscrupulous person could have just deposited the check and not transferred the domain.

Using escrow.com avoids these trust issues for both the buyer and seller. I have had a good experience using them for several domain transactions.

Re: The Art of Getting a 3 Letter Domain Name

#26

Post by larrys »

Fjslfj wrote: post #2

Disappointing. There's no discussion of how much they paid, or how they actually got their domain name. From the article, it makes it seem as though they are in a lease to buy situation.

Really good point which I had thought of as well. I will try and see if I can find out the price. (Hopefully this thread will still be going when I find the answer).

Found this (in the mean time) (doesn't mean it was posted legitimately):

https://flippa.com/2939130-ultra-premium-3-letter-dictionary...

Re: The Art of Getting a 3 Letter Domain Name

#27

Post by larrys »

By the way there are plenty of 3 letter .com's that you can buy in the 20k to 40k range. Anyone who is interested can email me and I will point you in the right direction of people that I know that are selling in that price range. Below 20k gets a bit more difficult. But possible sometimes.

Wholesale price for people buying crappy 3 letter .com's (that you probably don't want) is perhaps in the 5k level (but they are not a good set of letters generally). These people will buy any 3 letter .com for 5 to 7k since they know that if a law firm needs those initials (one that has not opened yet) they can triple or quadruple the money.

Re: The Art of Getting a 3 Letter Domain Name

#28

Post by mietek »

larrys wrote: post #21

As someone who both buys and sells domain names (and particularly 3 letter .com's since 1996) let me point a few things out. I might also mention that I am the go to guy for a few well known VC's that you have heard of although that is not my main business at all (although it could be it just doesn't pay that well compared to other things I spend time on.) This statement: "Within a day or 2 we started getting respons…

> People in the business can be jerks and unreasonable for sure but it would be more likely for someone to "ask" for 100k or simply say "domain is not for sale" than to say "7 figures" (2 letter, possible, 3 letter, specifically "all of the responses", no.

FWIW, here's an email I received when enquiring about a 3-letter domain name:

Thank you for your interest in this domain name

This domain name is among our most prized and sought-after domains. It is the online equivalent of prime, downtown real estate, and we get purchase inquiries about this domain every week.

Based on what comparable domain names are selling for, this domain name commands a premium price tag in the five-figure and higher price range.

This may come as a surprise to you since not everyone is aware that domain names of this quality regularly sell in this price range (and higher). Please visit the Domain Name Journal website below to see a current summary of recently sold domains and their selling prices:

(omitted)

After you’ve viewed the Domain Name Journal Sales Chart (above) and seen the current selling prices, we’d be delighted to discuss your interest in purchasing this domain name from us. Also, to avoid giving you ‘sticker shock’, we want to make sure your domain acquisition budget will support this domain’s five-figure and higher price range. We’re always respectful of our customers’ time and try very hard not to waste it with negotiations that can never get off the ground.

If your budget will support the five-figure and higher price range, please reply with a serious offer to begin the negotiation process with us. Any offer of less than five-figures won’t be taken seriously by us, and due to the volume of email we receive, will not be replied to at all. Thank you.

Re: The Art of Getting a 3 Letter Domain Name

#29

Post by radiusq »

mietek wrote: post #28
larrys wrote: post #21

As someone who both buys and sells domain names (and particularly 3 letter .com's since 1996) let me point a few things out. I might also mention that I am the go to guy for a few well known VC's that you have heard of although that is not my main business at all (although it could be it just doesn't pay that well compared to other things I spend time on.) This statement: "Within a day or 2 we started getting respons…

> People in the business can be jerks and unreasonable for sure but it would be more likely for someone to "ask" for 100k or simply say "domain is not for sale" than to say "7 figures" (2 letter, possible, 3 letter, specifically "all of the responses", no. FWIW, here's an email I received when enquiring about a 3-letter domain name: Thank you for your interest in this domain name This domain name is among our most pr…

Yeah thats bs salesman talk just to get the conversation started. Doesn't take a genius to talk around that.

Re: The Art of Getting a 3 Letter Domain Name

#30

Post by teh_klev »

larrys wrote: post #21

As someone who both buys and sells domain names (and particularly 3 letter .com's since 1996) let me point a few things out. I might also mention that I am the go to guy for a few well known VC's that you have heard of although that is not my main business at all (although it could be it just doesn't pay that well compared to other things I spend time on.) This statement: "Within a day or 2 we started getting respons…

Ok, you may be the expert at this, and whilst the article may not match your experience and contain some inaccuracies, I don't think there's any real need to be yelling "total BS and hyperbole" and "Total bullshit". Pretty sure you can disagree in a more constructive manner.
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