In a sales negotiation for my higher value domain names, I am frequently asked something along the lines of this: “If the domain name is so valuable, why is it still for sale?” The implication is that my domain name hasn’t sold because it is overpriced.

This is a simplistic way to look at it, but it makes sense that this would cross a buyer’s mind. Despite the fact that domain names have had commercial value for 30 years, people are still woefully uneducated about them. It is also a common response tactic to try and get the seller to come off the asking price.

When I receive this type of response, I tend to try and educate the prospective buyer instead of talking down to him or her. I explain that if the domain name was priced lower – sometimes mentioning the offer that was made – it would have been sold to someone else a long time ago. I tend to mention the number of offers that were turned down – particularly if much higher offers were submitted.

I may also share some comparable sales if I think that could be educational. I try to keep the number of comps to 5, and I do my best to ensure they are truly comparable sales. For instance, it’s silly to mention the $30 million sale of Voice.com when selling a one word .com domain name I have priced at $150,000.

In addition to this, I mention the growing value of exceptional .com domain names. People understand inflation and the increasing value of real estate, so I may relate the value of domain names to the value of everything else that has increased in the last several years.

I doubt I’ve sold any domain names because of these responses, but it can help educate someone and may give them a better idea of why a domain name is still for sale.