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Darryl Lopes

Learn negotiation skills from watching movies

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By Darryl Lopes, Aug 16, 2019
  1. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    One of my favorite movies is Master and Commander: The Far Side of the World. By watching this movie, I have developed a superior skill set for negotiations, based around illusion and a bluff, in a way that is not harmful to either party. It's not trickery or sleight of hand; it's more like positioning. From the movie, I use the tactics that Jack Aubrey employs on the open seas toward getting deals closed. By the end of deals, we all get what we want, and everyone is happy. I have even applied some of the principles from this movie to close six-figure domain name deals.

    More often than we realize, there are negotiations in day-to-day life: getting what you want and the other person getting what they want. These negotiations take place when you, your family, and/or your friends decide on the restaurant to dine; the clothes to wear; the car to drive; the job to work; the salary to earn; and many other aspects of life.

    In sales, negotiations happen between value and price, and when the value exceeds the price, people pay.

    Before reading the movie spoiler and details about the negotiation tactic, you may want to watch Master and Commander: The Far Side of the World. In my opinion, it's a true classic with action, adventure, romance, humor, drama, and heroics. Whether you watch it or decide to read more without watching it, you will learn what I saw and perhaps apply this tactic to your already-deadly Armada.

    The negotiation technique that I gained is from a pivotal part in the movie:

    The part of the movie that I refer to as a negotiation tactic is when they disguise their ship to look like a whaling ship by painting it black, making it blow smoke, and spilling its sails to slow down, which is quite unprofessional compared to the HMS Surprise crew. The idea originates from a stick insect that has a natural camouflage to look like a stick or twig to avoid being eaten by predators.

    In this part of the movie, they are pretending to be a whaling ship ripe for the taking so that an enemy ship would see them as an easy target to restock supplies and possible treasures. An enemy ship is lead to believe that they could simply destroy the whaling ship to smithereens with very little effort because the whaling ship would be outmanned and outgunned.

    When it comes to negotiations, I tend to think about this tactic, even today. I first thought about it when I was brokering domain names for Uniregistry in the Cayman Islands as a domain broker. Sometimes, I would envision myself as the captain of that disguised whaling ship. I was working in the Caribbean after all, and pirates did visit and bury treasure in the Caymans.

    As an illustration of this negotiation technique, I'm going to tell you about a six-figure domain deal where I applied it. A potential buyer inquired on a one-word domain name. This is the type of domain name that could become a household name in the likes of LinkedIn.com and Freelancer.com. The sales price was $300,000 USD.

    The buyer was not able to make an acceptable offer, so I suggested payment options because the seller was open to this type of deal. For example, the buyer can pay 15-25% upfront as a down payment and pay for the domain name on a monthly basis over time. In situations like this, payment options are worth discussing. However, we still had to settle on a price and agree on the terms.

    As the negotiations were ongoing, the buyer brought a co-founder/partner into the deal. Even in a negotiation, two people against one person is not fair. So, I mentioned to the buyer in passing that we could bring a senior broker into the deal to help who perhaps has a better relationship with the seller than me. In my mind, I was the whaling ship at this point. Metaphorically, I was spilling my sails and a little sloppy on deck, but this was part of the plan. I was not acting like a big shot or flashy professional broker.

    Before I left my desk to get lunch, I had a feeling that the buyer might call while I was away from my desk. Just in case, I quickly briefed my friend and colleague next to me on the deal. I let him know the domain name, what had been going on, and I told him that he's the senior domain broker on the deal with me. I'm glad that I listened to my gut feeling because the buyer called!

    It really made a difference and helped to level the playing field as we reached an agreement on price, which was in the low six-figures on a payment plan. The deal did complete and everyone was happy: the buyers got control of the domain name on a payment plan that is affordable for their budget, the seller got a desirable price, and I got my part of the spoils of war, my commission.

    I gave my colleague a portion of my commission, like any good captain would; even though he played a small role in the deal, it was a necessary part to complete the deal. Sometimes, it's about the sizzle and not the steak, which is the experience during the process and not solely about what's being sold.

    Time to set sail again.

    I hope you enjoy the movie as much as I did.

    What do you recommend watching to learn negotiation or sales skills?

    Share in the comments!

    A few reader suggestions:
     
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  4. Darryl Lopes

    About The Author — Darryl Lopes

    I am an Expert Domain Broker. I have over 6 years experience in the domain industry. I have brokered multiple six-figure deals over the years and sales totaling in the millions of dollars.

    This is Darryl Lopes's 1st blog post on NamePros.

    Home Page:
    http://d-lo.com
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  5. Comments (30)

  6. Avijit Roy

    Avijit Roy Member VIP

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    Congratulations on your first NP blog. Great read,keep up the good work.
     
  7. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP

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    Fantastic post @Darryl Lopes - glad to see you writing for the NPs Blog! I am excited to read your book when it is released.I will need to think about a movie and negotiation techniques!
    Bob
     
    Last edited: Aug 16, 2019
  8. kandyan

    kandyan Established Member

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    Nice read.. Thanks for sharing.
     
    Last edited: Aug 16, 2019
  9. Internet.Domains

    Internet.Domains Top Member VIP

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    Bringing in the "senior" or "manager" to close a sale is a common tactic for many companies. It is an age old sales trick. Once a customer is buttered up it's time to bring in the closer. I have seen it deployed many times throughout the years (longer than I would like to admit).

    However, most domain investors are one person shops. We are the only closer. There is no "senior" or "manager" to bring in and close the sale.

    All this said, there is a case to be made that having a company negotiate a domain sale could be beneficial as the resources are more plentiful.
     
  10. ASHUTOSH K

    ASHUTOSH K Established Member

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  11. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    in this definition, the time factor is missing

    value over time
    versus
    payment right now

    maybe solvable by monthly payments

    means the domain is worth what to them?
    in what time frame?!

    payment mostly is due now
    and value only shows up over a longer time period

    so the price has to be lower
    then the value in a relatively short time frame
    in order to have an easy sale


     
    Last edited: Aug 16, 2019
  12. NameAgency

    NameAgency Top Member PRO Gold Account VIP

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    American Pickers :xf.smile:. Not a movie
     
  13. Addison

    Addison Top Member VIP

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    The Wolf of Wall Street (2013)
     
  14. PeterNilsson

    PeterNilsson Domainexpert Blue Account

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  15. lolwarrior

    lolwarrior Founder, Brands.International VIP

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    Interesting content, and nice to read, thanks Darryl :)
     
  16. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    PS: Look up the Pirate Week in the Grand Cayman, in the Cayman Islands. If you even go there, check out the Calicos Beach bar on Seven Mile Beach and have a drink and watch the sunset. Cheers!
     
  17. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    That movie has some good take aways too.
     
  18. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    What I mean by this is if you lower the price of a domain name it does not increase the value.
    In order to increase value, you either need to show the buyer the value or position it in a way that is more valuable to them.

    See this video maybe it explains it better than I can:
    Price vs. Value
     
  19. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    I forgot to mention this broker that helped me was actually not a Senior Broker and had only been working there a couple of months but we ran with it and gave the buyer what they wanted.
     
  20. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    Thanks Bob, I appreciate the support.
     
  21. Darryl Lopes

    Darryl Lopes Upgraded Member Gold Account

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    Thanks, look out for more in the future!
     
  22. Internet.Domains

    Internet.Domains Top Member VIP

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    Bring it on! (Meant in a positive way). In other words, looking forward to it.
     
    Last edited: Aug 16, 2019
  23. topdom

    topdom Established Member

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    You get a low offer, then what you do:

    Was expecting 10x this much, and I'm sure this price will be realized within 3 years and maybe earlier if we make an effort to sell. but since we prefer to sell in the first year, we can accept a price at lower end of our price range we use for similar domains (mention that you have other domains?). Your offer is too low at the moment, but you can make a better offer and sometimes we accept offers which are hard to accept. If there is a cash flow problem, we can consider a rent to own payment method via a well known 3rd party service but first there must be an agreement over the price, and number of months.

    Negotiation is easy when there is communication, but usually there is no communication.

    Instead bribe buyer's friend, and let him send the buyer a domain story which praises a purchase made by an enduser, which says, someone bought this domain and magically sales tripled.
     
    Last edited: Aug 16, 2019
  24. nglishsteven18127585

    nglishsteven18127585 Established Member

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  25. frank-germany

    frank-germany domainer since 2001 / musician Gold Account VIP

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    my thoughts were this:

    the value of a domain might be in
    - the visitors / aka traffic

    now that traffic may have a value to the prospect buyer

    but that value shows over time
    in the form of sales in the next 5 or 10 or more years
    your the price may reflect that

    but there is an uncertainty
    - that the traffic stays alive
    - that the sales can be closed to that traffic

    the price of the domain has to compensate
    the long time frame of amortization
    and the uncertainty

    in order to be attractive enough to close the deal
     
  26. pablohc86

    pablohc86 Top Member VIP

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    Always interesting news from Derryl, congrats!
     
  27. sharastar

    sharastar Established Member

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    @Darryl Lopes One hell of a information with an example and great video quote to it from Uncle GC
     
  28. Jimmysun

    Jimmysun Established Member

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  29. lock

    lock Startrz.com Starters Your Domains. VIP

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    I learned the hard way selling cars but was lucky enough to be put though the most stringent of sales courses. Learn closing and negotiate till you do. I won't ruin your fun as are some fun sales movies.
     
    Last edited: Aug 21, 2019
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