We had a number of inquiries regarding the letter of offer we use to approach corporations about a domain name we have for sale. Depending on the potential client or domain name we are attempting to sell, we will use one or two different versions of the following letter:

SAMPLE LETTER

Date

Company Name
Address
City, State, Zip

Attention: [Relevant Contact Person]

Dear [Buyer Name],

Would [Company Name] group be interested in the domain name [Domain Name you are trying to Market]?

Our development plans for –[domain name]– site have changed and we have opted instead to sell the domain and hope your company would be interested.  (Note: If you can find competitors that own or use similar names now would be a good time to mention it. Idea is to plant a seed or put forward a concept they may not be aware of).

Thank you and we apologize for the inconvenience if this is not of interest.  If this should be directed to another individual could you kindly advise the correct contact person.

Best regards,

Your Name
Phone Number
List or link to the Domain for Sale

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Determining an Asking Price for your Domain Name

Now that you have your approach letter ready you should do some homework to determine the fair market value (FMV) or present market value (PMV) of your asset. Some would argue this should be step one.

How to determine an asking price for your domain:

Use sales history to get an idea of the current value or FMV … try visiting http://dnsaleprice.com/SalePrice.aspx there are other similar sites.

Visit forums and search for similar domain names or seek advice or an evaluation from respected domainers or users.

Use common sense…remember you are approaching someone and trying to convince them to buy your domain. If you receive an unsolicited inquiry then you need to take a different approach.

Appraisals…I am not big on paying someone to determine PMV. If you own a three letter.com then you might wish to endure the expense of a professional appraisal but for the most part you are better off asking other domainers for their opinion on valuations. Remember to mention you are selling to an end user and not another domainer.

As mentioned, in previous posts, the true PMV depends on your niche and what someone else is willing to pay for it. If you register a domain name for under $10.00 and receive an offer of $500.00 for it, sell it and move on. What business model are you aware of that generates that kind of a profit margin with no downside or risk?

Filed under: Domains General, domain for sale, domain name letter of offer, sales letter