Eric Lyon wrote a very nice piece on domain selling psychology, with his permission it is republished here.
(Please note that the below is merely my personal opinions based on my involvement in the sales industry. Everyone’s experience is a little different and results may vary. Please conduct your own research and testing to find what works best for you.)
When selling domains, whether it be to resellers or to end users we have to keep in mind that there are deeper psychological forces at work involving the neuro network of the human brain. While these same psychological attributes can be applied to just about any sales related atmosphere, today we are going to talk about the application of them in the domain industry.
The more we can understand the psychological buying triggers of human beings, the better equipped we are to increase our conversion rates.
So, Lets get started……
A.) Buyers emotional trigger: Buyers commonly decide based on feelings, needs, or emotions, and not always through a logical thought process. To persuade a purchase you should first ask yourself what will get the potential buyer emotional about the domain. (Emotional triggers = Impulse buying)
B.) Researched Facts after emotional intrigue: Once you get an emotional response it’s common for buyers to second guess them self if the deal isn’t closed immediately (early buyers remorse). When this happens, even though the buyer is overwhelmed with emotions to buy still, they may start to research a little to find at least a shred of evidence to support a buying decision. To help curb this 2nd guessing and research, be sure to provide some researched facts up front during your presentation of the domain so that it helps maintain the buyers motivation to invest.
C.) A Buyers Ego: It’s habit for business minded buyers and investors to harbor some form of self righteous ego. So it’s very important that when you ask a buyer to close a deal and make that domain purchase that you also answer the most important ego questions that pop in their head (E.G. “What’s in it for me?” or “How can I justify my personal worth buying this domain?”).
D.) Buyers like value: Remember, true value can’t be summarized by a number / price. True domain value is instantly calculated by a buyer (end users) based on what they are used to paying for things, how bad the buyer wants it, and how the buyer feels about your overall presentation compared to other presentations they see every day. The more value you can emulate through your presentation to drown out the price tag (making it irrelevant), the better amount you’ll be able to get for your domain when closing the deal.
E.) Buyers visual stimulation: The human brains neuro network is not by any means similar to a computer. Neuroscience has proven that the brains primary function is to deal with interactive social events. Just like back in high school, you need to make sure you use visual stimulants and references to walk buyers through the value process just like the old math questions that used apples, trains, and animals to make math equations easier to deal with. You want the buyer to understand the value even if they aren’t a mathematician by drawing that mental picture for them in the presentation process.
F.) Self defensive buyers: Buyers have a natural and instant line of defense when they feel they are being sold or pressured into something. Like when we go into an appliance store and a salesman immediately approaches us asking if they can help. Our first instinct is to put that wall up and reply with “Just Looking”. Be sure not to come off to desperate and that your presentation shows a clear need for the domain. The more comfortable the buyer is, the more apt they are to buy from you.
G.) Buyers truly love to buy: It’s said a lot that people fear being sold. Well, that’s partly true when it comes to being cheated or tricked, however on the other end the spectrum buyers genuinely love to discover new and innovative things. With this in mind, lose the “Selling” mentality and adopt a “Helping” mentality. Treat people fairly and show a genuine effort to actually be helping them rather than trying to sell them something. It makes a big difference.
H.) Suspicious buyers: With all the scams that have happened over the years online people have become naturally skeptical of just about everything. Buyers want to avoid risks more than ever before. Since you aren’t a mind reader and unable to know who’s paranoid and who isn’t, it’s best to assume everyone is and back up all your claims with evidence (E.G. screenshots of analytical data, links to previous verified sales similar to your domain, etc.).
I.) People always need something: Whether it be Love, Wealth, Glory, Comfort, or Safety, people are always looking for something. Like everyone else in the world, buyers tend to always be unsatisfied with something and looking for a better solution. So be sure your sales presentation addresses some of the most common needs and provides a definitive solution to their problem.
J.) Convenience buying: If a buyer found an almost exact domain to yours locally or at an already trusted location, that’s more than likely where they will buy the domain they feel fits their needs. It’s important to make a potential buyer feel like you are the one offering that exclusive convenience to them. If a buyer feels like they are getting an exclusive deal they can’t find locally or at a closer location, they are more than likely to stop looking and just do business with you.
K.) Buyers 5 senses: That’s right, it’s no big secret that buyers in today’s world like to see, touch, smell, hear, taste. Many buyers avoid buying online because of those 5 senses and it creates an instant obstacle for sellers like yourself. Think about when you go to a store to shop for things yourself. What do you look for? How do you decide which model is the right one for you? Are there certain features that make it better? etc… Now think of ways to provide some interaction or at least visual aid into your presentation so online buyers are less likely to back out due to the 5 senses and feel somehow psychologically stimulated in those areas.
L.) Buyers are followers: Many buyers are really just imitating what they saw someone else do. We are always looking upon others for guidance, especially in areas we aren’t certain of. As we both know, many buyers are truly uncertain of the domain industry and how it works. A buyer tends to ask them self “What do others do in this situation?” or “How do others feel about this domain?” and then they act accordingly. This is why having good feedback from previous buyers (e.g. itrader, testimonials, reputation score, reviews, etc.) is essential in many cases to help close your deal. It provides that second opinion instantly making a buyer feel a little bit more secure in their decision.