(image source: Flickr)
Bido.com has an in house sales team that contacts potential buyers (end users) and lets them know about upcoming domain names, the opportunity, etc. Basically spreads the word. In observing one of our sales managers yesterday doing a prospecting call to a real estate office in Phoenix, really clued me in as to why businesses still don’t get it.
The call went something like:
Sales Manager (Mike):”Hi this is Mike with Bido.com, is the person in charge of internet marketing available?”
Receptionist: “Sure hold a moment,”( Mike figured great I will discuss the opportunity with the decision maker and get an end user in on the auction, right?) Sure…
Mandy(Internet Market Manager) “This is Mandy how can I help you?”
Mike: “Hi, Mandy this is Mike with Bido.com, we are going to be auctioning off SouthPhoenix.com tomorrow and wanted to let your firm know about the auction.”
Mandy: “Mike what are we going to do with another website, we already have four?”
Mike: “Four wow, that’s great, this can only add to your current marketing efforts and position your company as the leading real estate firm in South Phoenix.”
Mandy: “Really we don’t need anymore websites. I told you already we have four of them.”
Mike: “Mandy do you know how much business you are generating from those websites?”
Mandy: “A lot.” By the way, this is where she gets LOST!
Mike: “Wow, great, (this is where the fun starts) “So you are telling me you have no interest in buying Phoenix.com for your company?” (Guys, Phoenix.com! Read closely)
Mandy: “No, we don’t wouldn’t want to change our domain name.”
Mike: “You wouldn’t have to change your domain name just add it to the four websites you are currently generating leads from. A premium name like Phoenix.com will obviously generate you a ton more calls than the websites you are currently operating.”
Mandy: “You obviously don’t get it, we are not interested in changing our domain name and not interested in what you are offering.”
Mike: “Well ma’am do you have any recommendations as to a competitor or someone else whom might be interested, I am sure there has to be someone in your area interested in buying Phoenix.com”…
So what is the moral of the story? It’s not that Mike didn’t get it, it’s that small businesses in general don’t get it, most businesses don’t get it. A few things I want to point out, The “internet marketing manager” failed to ask so pretty important questions:
1) How much is the domain name? (Or starting price.) Guys, the starting price is $1. No Reserve!
2) Is there any traffic associated with the name? Or any other vitally important question(s)…
Mike didn’t even have the opportunity to present her with some internet math, our well trained sales force knows what to say to get the wheels spinning when they have the opportunity…(Something to the nature of):
“How much is just one sales lead worth? Let’s say the average home in South Phoenix sells for $150,000 and assuming your firm receives the standard 3% commission for representing the buyer, therefore generating $4,500 in commission and let’s just say by placing a simple lead capture form on SouthPhoenix.com with minimal content related to the area, you generate say one lead a quarter that is four per year, well then you can expect SouthPhoenix.com to generate $18,000 in commission this year and every year after. Are you interested now?”
I don’t blame her for treating Mike like any other solicitor but the fact is instead of taking a couple of minutes to understand what was being offered and the opportunity at hand, she like most people turned a blind eye and let this (truly) once in a lifetime opportunity pass but she was lost long before Mike ever got to the nitty-gritty, I mean come on, he said he was selling Phoenix.com and she still didn’t bit, he could have said he was selling any domain name and it still would not have peaked her interest. This domain will be one that will pass many and in five years from now, this lady(if she is still employed) or other firms when buying leads from the now owner will say, “shoot I guess I should have bought that domain name when I had the opportunity.” This is one of the obvious problems with all small businesses and the challenges we face within our industry. Don’t get me wrong some businesses are wising up but they are the exception not the rule. While companies like BuyDomains.com and Moniker.com are making progress at spreading the word and educating the world beyond domainers of the values and potential of generic domain names we are a long way from home Toto, a long way from home.
This like so many other high quality generic domain names reminds me of the classic of all classics, Hotels.com…Need I say more.
What do you bet the internet marketing manager also handles making photocopies and scheduling appointments? they’ll never get it.
to play devils advocate, right now there is only 1 person bidding on google for “south phoenix” so anyone out there could get traffic for next to nothing and using the “just one sale per quarter” logic make a quick 18k per year (minus click costs).
If we are such smart internet marketers, why aren’t we doing that? Probably because it isn’t that easy…
I don’t know anybody who likes to get a cold call and then on top of it an “education”. Pitching people is tough work in ANY sales job if they don’t want to listen to the pitch. Most people don’t have the time in their normal average everyday world to listen to a pitch. You can tell by this conversation that she was on the defensive.
The point of this was not if SouthPhoenix.com was good or not, but even when mentioning Phoenix.com, a PRIME domain, the level of understanding and interest is exactly the same.
Sahar
Wow, your sales person even said the domain was Phoenix.com and still no interest?
I’m pretty confident Mandy must be excellent at her job.
I just hope her boss is as talented as she is, because with Marketing Managers like that, who needs strong generic .com domain names.
This post reminds me of trying to explain search marketing and website development to domainers that only park their websites and expect at least 10-100 year multiples when selling a domain.
This post reminds me of trying to explain search marketing and website development to domainers that only park their websites and expect at least 10-100 year multiples when selling a domain.
Great post about people/companies not getting it! I’m sure during these type of calls one would run into most not “getting it”. At this point, do you think it would be worth it to ask for an email address and hit them with some Quick Point? Each phone convo will be a little different, but I think 5 email templates would cover you.
BuyDomains.com used these 5 points in an email that I got and I think a follow up email to these types of entities would help. Here are BD’s 5 point : http://www.dotweekly.com/2008/06/09/buydomainscoms-5-reasons-to-invest-in-domain-names/
I always like the “Corner Store” story as well and foot traffic, if a domain has traffic. It get’s people thinking… You can compare the foot traffic to the uniques the domain gets. Corner Store X get’s 100 people in the door a day during business hours of 9-5. Domain x, get’s 500 people in the door 24/7 & 365 days a year. No lighting bill, no insurance if the person falls, no paying the guy to “ring up sales”, no “paid breaks” etc.
Sahar,
Why don’t you have a recent sales section at bido?
I read this very interesting story, but one thing is missing…sale price…
—-answer—-
Yaron,
It was added a while back,
http://www.bido.com/AuctionArchive
Cheers
Sahar
I have a slightly different view of how this phone call should have went. Yes, the marketing manager didn’t “get it” but she have been “delivered it”.
Sales Manager (Mike):”Hi this is Mike with Bido.com, is the person in charge of internet marketing available?”
Receptionist: “Sure hold a moment,”
Mandy(Internet Market Manager) “This is Mandy how can I help you?”
Mike: “Hi, Mandy this is Mike with Bido.com, we are going to be auctioning off SouthPhoenix.com ***for a $1 starting bid*** tomorrow and wanted to ***present*** your firm ***with the option to buy a domain name producing customer leads in the [INSERT INDUSTRY] Industry***”
Mandy: “Mike what are we going to do with another website, we already have four?”
Mike: “[NO PERSONAL COMMENTS], this can only add to your current marketing efforts and position your company as the leading real estate firm in South Phoenix ***due to the ability to generate customer leads based on the [NAME ALONE, WEBSITE TRAFFIC, CONTENT, ETC].”
Mandy: “Really we don’t need anymore websites. I told you already we have four of them.”
Mike: “***This can be added to your existing sites. Would you like me to send you a copy of [STATS, REV, WHATEVER SOLID NUMBERS CAN SEND] via [FAX, EMAIL, WHATEVER] for your review?***”
I’m sure Mike is a good rep, however, he let Mandy take control of the conversation a bit too much and didn’t give any solid reasons in the way Mandy could understand why this domain is *the* domain her company should get.
Tia Wood
I’m not surprised that she would not know the value (to her business) of a name like phoenix.com - there are still very many small businesses who do not ‘get’ the importance of the internet full stop, let alone the power of a domain name.
Bearing this in mind, 1 day’s notice to be educated on this, make a decision, and then come up with the funds (xx,xxx?) to purchase a name like southphoenix.com is a bit hopeful IMO.
Even someone ‘in the know’ would need a few days to consider the opportunity.
Just an idea…
What if you could ask the “potential buyer” to pull up your website to a special page that had some specific, targeted info that they could eyeball at their leisure (while you had them on the phone, or later), with some key bullet points about the benefits of domain names in general, and the specific one that you are targeting for them in particular?
It might be enough to whet their whistle enough to get them to give you a call back.
My husband’s company, Spidertel.com, just won Ingram’s Kansas City’s Best Web Development, Gold Award for 2008. Most of his new business comes from this video he has of himself talking about his company on his home page. It has been tremendously effective for him in landing new accounts.
This type of video could be an option for supplementing Bido’s cold calls. It wasn’t very much money to produce, and people really seem to get a kick out of it.
—-answer—-
Will pass it along Kellie, thanks.
Sahar
Hi Sahar,
Hope all is well.
I think this is a much a lesson in cold calling as it is in domaining.
In my experience, the caller’s first sentence determines the outcome of the call.
Mandy didn’t get it, because she didn’t listen after Mike’s first sentence. Like Mandy, most of us are conditioned to ‘tune out’ a caller as soon as we hear phrases like “Hi ‘prospects name’, this is ‘caller’s name’ with ‘company name’….”
Personally, I like to start by asking the prospect if they are open to having a conversation about something that can help them generate more business. If they say no and hang up, it’s their loss, but I find people are usually pretty accommodating when they realize I am not overtly trying to sell them something.
If they think I am soliciting something I apologize immediately, because I don’t know if they TRULY need what I have to offer.
Cheers,
Hayden
Mandy: “Really we don’t need anymore websites. I told you already we have four of them.”
Mike: “Mandy do you know how much business you are generating from those websites?”
This is the pivot point whereby Mike went one too far. He might as well have said “Mandy, do you realize how ignorant you are not to bite on my unsolicited cold call?”
Someone says “I told you already …” then that’s your cue to bow out, be gracious. There is a chance, if you left your number with a “thank you for your time”, that some office conversation may have ensued possibly resulting in a call back or a visit to the auction. Pressing the issue with Mandy to manipulate her perception tilts the buyer firmly away … leaving some good riddance residue in place of a civil, invitational tone. High pressure techniques close the door very quickly in many sales situations. However, I can see how the time intensive nature of the sale leaves a saleman with a “what have I got to lose” mentality. Bido’s reputation was not enhanced by the telephone exchange. That’s worth considering, imo.
Just one more example of: Most people are too busy working to make any real money.
Being a broker myself for almost 20 years, and having spent the last 12 helping other brokers understand and compete on the internet (selling them many of my real estate domains along the way), it does not surprise me that the vast majority really dont get it. Most small business really are busy dealing with their primary business, and count on others for help with this “new medium”. They dont live and breath domains every day like many of us do. The “already have 4 websites” comment shows just how removed they are from concept of a “quality domains” and what that actually could mean to them. So no, we’re clearly not “there” yet. On the otherhand, Gorden is right, they can currently grab that traffic on the cheap. The difference is, in 30 years from now when they sell that real estate office, the domain itself, being real estate, will have built up equity, and when that price per click rises, the domain and natural traffic it produces could end up being as valuable as the “accounts” themselves. Typical real estate office has 5-6 people. Most dont have an “internet marketing” person, other than to make sure their listings are up and someone answer emails. Of course, most domainers dont have 4 sales for $18,000 profit every year either. “Time, Time, Time, is on our side, oh yes it is”…..
You would think any real estate agent would want to own their place name in .com, even in .net or org. Plus, they should want “City Name” Real estate, Homes, Realty, homesforsale, property, etc, all those real estate related terms. In .com and even their country code if it is popular where they live. But I still see realtors using their own name for their website, which isn’t great if it’s not easy to remember or spell. You’ll remember SpringfieldHomes.com easily, but not something like JoannieMcLaughlin.com. And they use all sorts of hyphen domains and word combinations that wouldn’t stick in anyone’s mind. And there are still many realtors who don’t have a website, or list their email! It really says something about the lack of internet marketing savvy in the business world in 2008. I remember reading about PalmSprings.com, when they started and contacted every realty office there about advertising, they all turned the opportunity down, except the last one which ended up getting tons of leads by being on PalmSpings.com.
I don’t know anybody who likes to get a cold call and then on top of it an “education”. Pitching people is tough work in ANY sales job if they don’t want to listen to the pitch. Most people don’t have the time in their normal average everyday world to listen to a pitch. You can tell by this conversation that she was on the defensive.
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Agree, when I get a cold call the first thing I do is put the phone down. If they told me they could improve my business or that I had won $100,000 I would still put the phone down.
—-answer—-
You guys cannot be serious. In the real world cold calling is how business is done. From Yellow Pages to Selling online advertising (yes, even Google cold calling businesses). It usually starts with a cold call.
Sahar
Looks like domain names are still aliens to most people. x_X
I’m hoping you have a followup mail plan of some sort where you snail mail the uninterested prospects after the sale and feed them the numbers and possibilities of the name they didn’t want. Maybe a nice newsletter full of information and links to even more info would work here.
This would educate them if they choose to look the materials over and possibly pave the way for another sale later. And maybe, just maybe, they’ll start looking actively for domains to expand their business. And if your printed marketing materials convinced them to seek out new domains they’ll probably start their search with your company.
And just maybe I or another of your readers here will benefit from the trickle down effect when they see a domain one of us has and then decide it’s just what they need.
Hi Sahar,
I think this is more common that what people online believe, An enduser sale is the hardest sale to ever close. Often they dont understand why a keyword domain name would bring them more traffic! They dont have clue about Direct naivigation - I think we all need to help educate people we know and hopefully that shall filter through at work and maybe eventually an IT manager shall here about this and say “Wait A Minute, if I own Computer.com for my wholesale computer business people are going to come to my site looking for Computers & I dont need to spend a fortune on Adwords Campain”
Well time shall tell the internet has changed so much over the past few years and I think that one day maybe more people shall understand.
Here is a link that I send to Endusers to let them see other companies that use Keyword domains - I think everyone should include this when trying to sell there names if a lesson needs to be learned.
http://www.genericdomainnames.com/info/Generic-Domain-Name-Ownership/i=9
Another great post Sahar, keep them comming!
Regards,
Robbie
Great post Sahar - it’s that small businesses in general don’t get it, most businesses don’t get it - it makes me think what kind of creativity and intelligence this so called leader’s (so called Manager’s / CEO’s and other’s) have?
That is what I call text book knowledge people with NO common sense (thick as a brick).
{”This domain will be one that will pass many and in five years from now, this lady(if she is still employed) or other firms when buying leads from the now owner will say, “shoot I guess I should have bought that domain name when I had the opportunity.”}
I’ll bet that she won’t be employed nor will the company that employed her still be around. Aside from the traffic/sales lost, you can bet this domain name will fall into a competitors hands that will use this traffic and sales to remove competition.
Many businesses confused what the difference between and website and a domain name are. Mike should have specified earlier that multiple domain names can be pointed to one website.
It is my strong belief that over time the Internet will become an monopoly and that domain name consolidation in fields such as this one will be inevitable. Letting small or big domain names fall into the hands of competition can be very detrimental to any company.
It all comes down to the lack of education. The question is also why domains arent also part of Management, IT and Marketing education. It will be some day, and by then, SouthPhoenix.com will be for most unafordable, like many other names.
While living in Germany, I just developed a site on BüroKaffeeService.com which means OfficeCoffeeService in english. I had to also buy the .de cc TLD’s which where a nice bit of money for me.
Now owning the relavant extentions it can be used for all German speaking country’s like Switzerland, Austria and Germany.
When I offerd it to one of the most largest coffee service company’s here in Germany, i didnt even name a price. I just asked what it would be worth to them? The Answer was not even worth mentioning, even explaning why this name with all the cc Tlds would be a good investment there was no reaction. I mean it doesnt get better, generic, no explaning, a business.
There are aprox 1,2 million businesses which use a coffee office service just in Germany that is, not counting Austria and Switzerland.
The end of the story is, if they dont want to buy, develope and let them pay for each contact they get over the site.
Now, that it generates 2-3 business contacts per week which i send to them, lets see what the offer might be in 12 months from now after having to pay for each contact (lead) they recieve?
Like i mentioned at the beginning. It all comes down to the lack of education, not learning and listening! Its a costly and expensive mistake for so called management and Marketing pro’s.
PS: Great Blog Sahar
Excellent point Duane. I recently did another 2 year program in IT along with my University education.
Only once was domain names mentioned in a 2 minute part of a lecture. With such an important topic it is funny how it is often disregarded.