How I Bought A Domain For A Third Of Asking Price

How I Bought A Domain For A Third Of Asking Price

Posted by on Nov 27, 2009 in Work From Home

How I Bought A Domain For A Third Of Asking Price

I just bought a domain for a third of asking price and since it worked so well, I thought you might want to know what happened.

I was planning a niche website and started to check the best domains related to it on http://whois.domaintools.com.

Best domains are short, catchy and include the main keyword or a synonym.

For example, if you were planning a site which would share lots of tennis tips, you’d want to check if tennistips.com, tennistips.net, tennis-tips.com and similar domains are still available.

I checked about 7 or 8 domains, used synonyms that tried to say the same thing using other keywords when I came across a domain that was for sale:

Domain for sale

I followed the link and ended up on a site that specializes in buying and selling domain names. There was a form to complete:

Domain for sale form

I simply introduced myself and asked the price of the domain name.

I received an email a day later:

“Hello,

Thank you  for your request regarding the domain name in question.

Owners will accept $3,000 US for their domain name.

Please contact us with any questions.”

I then checked the domain more thoroughly using archive.org and noticed that there hasn’t been any content on it since 2004. The domain was actually first registered in 1998.

This is the note that I sent back:

“Hi,

Thanks for such a quick reply. I can manage $1,000 payable through paypal.

I see that the domain hasn’t had any content on it for years; so if you expect a better offer in the near future, then feel free to pass my offer.

If not, let me know how to proceed as I assume you’re often dealing with domain transfers on behalf of your clients and I am willing to follow your procedures.

Best regards,
Tomaz Mencinger”

There’s some psychology here at works, so let me explain: since I noticed that the domain hasn’t had any content on it for 5 years, that meant that someone was not successful in selling it.

Maybe they asked too much for it in the beginning, in any case $3000 was too much now too.

$1000 is about the maximum I would be willing to pay for a domain without content – because it is a 2 word domain, has keywords with lots of demand and is quite old.

I also emphasized that they can pass my offer, which would mean that they would continue to be unsuccessful in selling that domain.

I also stroked their ego a little bit saying that they are probably very good at what they do 😉 and that I was willing to follow their lead – and that I wouldn’t complicate with my ideas of how to pay and transfer the domain.

This is the reply I received the next day:

“Hello,

Congratulations, your offer for the domain name was accepted.
You can now purchase the domain using a credit card \ paypal  payment option.

We accept credit card and paypal payments through 2Checkout, which is reliable and secure service.

Your secure order will be processed by 2Checkout.com Inc.
You will have the option to pay in the currency of your choice during checkout.

Please use the following URL to make your purchase.

https://….

If the payment link above does not work properly with your email program, copy the url directly into your browser.

Please make sure that the entire url appears in your browser.

Once your payment is verified, we will unlock the domain name, issue a
Domain Auth code and send you  the login/password to manage the
domain name online. You will also be able to move the domain name to your
preferred Registrar after that.

Regards,
Support Team

—————————-

So that was about it. I paid using paypal through 2checkout.com, and received  the access to the domain in the next email about 2 hours later.

I transferred the domain to bluehost.com where I also host this blog and some of my other sites.

By the way, I really recommend bluehost.com (aff. link) for hosting and domain management as they offer payment with paypal and have lots of video tutorials (including how to transfer domains).

I’ve never had any problems with them and the domain manager and hosting accounts are very easy to understand and manage.

In summary, I wanted to show you how to find a good domain name and how to bargain. Of course, if you’re not willing to walk away from the deal, then you don’t have the real power in negotiating.

For my purposes, that domain name was not so critical and I could have registered a similar domain for $10 per year.

But since I can afford it and the domain keywords really explain in 2 words what the site is about (and those two keywords also have lots of demand and I’ll probably rank quite high in Google for that search term in about a year or so), I made my offer.

I’ll build this site with WordPress but I’ll find a theme that looks like a website and not like a blog. The site will be built with SBI principles and I will keep you posted on its progress.

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    14 Comments

  1. Hi Tomaz,

    You’ve been talking a lot about the benefits of SBI of late, so I’m wondering why you are building your new site/s to ‘SBI principles’ but not actually using SBI itself?

    Cheers

    Derek

    [Reply]

    Tomaz Reply:

    Hi Derek,

    First, the greatest value of SBI in my opinion is in teaching you how to create high traffic websites. I know that now.

    The second greatest value of SBI is the C2, but I won’t need this one here and I’ll try to get some extra content going through comments.

    This site is going to be a simple affiliate site with no need for newsletters, forms and other tools that SBI offers.

    Google ranks sites based on content and links and there is no magic behind SBI. SBI sites don’t magically rank higher than others.

    It’s just that the SBI-ers follow the process laid out in the Action Guide and therefore succeed more often.

    I know the process and can apply it to any type of site.

    [Reply]

  2. Hi Tomaz

    I have some fantastic ideas for a product based site and will be starting one in the new year.

    Do you have a Yahoo store and have you read Andy Jenkins book on setting one up? I remember you said somewhere that his book had been a great inspiration to you.

    BTW – congratulations on the new site.
    Carole

    [Reply]

    Tomaz Reply:

    Hi Carole,

    I don’t use Yahoo stores – just Google, Chitika and Amazon mostly. I don’t remember reading Andy Jenkins book though… What’s the title?

    [Reply]

  3. Hi Tomaz

    Andy Jenkins wrote the best selling book Online Store Profits, A Step-By-Step System (I think you can dowload it from Amazon) and he also has videos – http://www.yahoo-store-builder.com (I’m not an affiliate but he and his partner are making tons of money 😉 so it’s worth reading.

    I’m not sure if I will use this or not and am also looking in to dropshipping as my next site will probably be on fashion or something to do with health.

    Best
    ~Carole

    [Reply]

  4. Hi Tomaz,

    Wow, you paid $1000 for a domain. It makes me think how much you value the age of a domain and the name of the domain itself.

    I have also been sticking to Adsense, chitika and infolinks as my main monetization plans.

    [Reply]

  5. Hi Tomaz,

    Just curious, what is your opinion of incomes steams such as Adsense, chitika and amazon stable in the longer term?

    I understand you sell ebooks and videos through your tennis site as well.

    I have been reading a lot recently. As the year is nearing so, I was wondering if building a list and promoting affiliate/info products is a more sustainable and more rewarding strategy to quit my day job.

    [Reply]

    Tomaz Reply:

    Hi Jerrick,

    It’ not just the domain. For this niche I have 245 keywords with demand over 500 and supply less than 500 (from MKL). That’s an excellent niche and the perfect domain for this niche was for sale – that’s why I stretched myself a little bit.

    As for income streams; check this article on retail traffic this weekend.

    People were buying like crazy – I earned just from Amazon over $1,800 in the last 4 days.

    More and more people will buy online in the future so if I can sustain the traffic (and grow it by adding more content and building more sites), then I should be fine.

    To build a list of people who trust you, you really need to be an expert in some niche and constantly interact with these people.

    That means work. I do that only for my tennis site because I really love what I do. For everything else, it feels like pressure work and I would sooner or later stop doing it.

    [Reply]

  6. Wow, 4 days $1800…..that’s very steady!

    You always provide some of the most unbiased views. I truly appreciate it…Thanks a lot!

    [Reply]

  7. Hey Tomaz,

    How do you value or know how much to pay for a domain? Do you use something to let you know the value?

    Sherman

    [Reply]

    Tomaz Reply:

    Hi Sherman,

    I don’t use any tools. I look at the “buy / sell domains and sites” forums almost every day and got the feel for how much these domains sell for.

    I see for how much sellers offer them and for how much they are bought. Check the Digital Point forums and Sitepoint. Just Google them…

    [Reply]

  8. Hi Tomaz,

    I have a domain question for you. As I was looking at competitive sites in my nice, I came across a site that was linked from just about every other Zune site. At one point it was a Zune directory but it’s currently a dead site. It has no content on it other than some kind of search portal.

    It’s a PR3 site with tons of inbound links. It’s an older domain registered in 2006. It’s Alexa Traffic rank is not great, 7.7 million. I imagine what traffic it’s getting is related to my niche.

    So I emailed the owner asking if it was for sale. I wasn’t really expecting a response. So I was surprised when he replied back saying it was and asked me how much it was worth to me. Not knowing how to value domains and not sure how useful it will be to me, I sent him back an offer for $75. I’m waiting for his response.

    I’m thinking that this domain could be useful to redirect to my site. Or maybe put up a page that links to my site.

    The question for you — Should I be pursuing this domain? If so, how should I go about valuing it? And what will it do for my site?

    Your insights are appreciated as always.

    Thanks!

    [Reply]

    Tomaz Reply:

    Hi Nisheth,

    The domain would definitely be useful to you. I would add some original content to it and link from many related pages to my main SBI site.

    A good tip I learned recently is to keep the domain at the same registrar and host. Ideally, if the domain was registered with godaddy and is hosted there, you would open an account with godaddy and the domain would be just “pushed” to your account.

    That’s a safer way to guarantee that the domain keeps pagerank and authority after the transfer.

    How to value it? Check the sales of PR3 domain in Digital Point forums and Sitepoint forums so that you have some idea of the value.

    Eventually the value is determined by you and the seller. 😉

    [Reply]

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