Playing poker online in order to make money is similar to the art of domaining. Today I will introduce a couple of strategies from online poker and apply them to domaining, in hope that both novice and more advanced domainers can learn from them.
Look at the picture above. Two poker players fight for first place. One will win and one will lose. Let me ask you a question.
Who has the advantage: the player that acts first or the player that acts second?
The right answer is that it is always an advantage to act last. Why? Because you are acting on more information than your opponent. When acting first, you are completely in the dark. You have no way to know if he holds squadoosh or pocket aces. However, after an opponent’s move, you know more about his hand strength (e.g., if he folded, it was weak; if he raised, it is probably strong; and if he called, it is likely somewhere in-between).
Does the game change when you know your opponent never bluffs? Definitely!
Would you play better if you narrowed down his hand to only three possibilities? You bet!
Is the game easier if you know your opponent is bluffing? Oh yes!
Information is key. The more you know about your opponent, the better decisions you can make.
You can apply the same principle to domaining. Negotiating a deal with someone is similar to playing poker against that person. He is an opponent, because he wants the opposite of what you want. You want a lot of money for your domain name, and he wants it for as little as possible, preferably for free.
If you don't know anything about your opponents, you will make different decisions than you will if you know a thing or two about them.
In poker, if you have no information, you would start by playing a Game Theory Optimal (GTO) style, which is a strategy that yields the highest possible expected value when accounting for an opponent to perform optimal moves. If both parties employ this strategy, neither can be be exploited and neither can exploit the other. Thus, this strategy does not maximize profits.
Similarly, in domaining without any information, your first move is to send a generic email like:
An email like this will make contact, but nothing more. If potential buyers are really interested in the domain name, it won’t scare them away, and they will likely respond.
However, 95% of buyers will need you to explain how buying your domain name will benefit them. In order to effectively pitch your domain to buyers, you need to gain information about them.
In online poker, you monitor tells and opponents’ betting patterns, and then employ HUDs (Heads Up Displays that track important game statistics) to help you make informed decisions.
In domaining, you should also monitor key information to improve your decisions. Learn as much as you can about your opponents, such as:
About the Company
About Your Direct Opponents
If you know the answers to these questions, you can write an email that will look completely different from the stock example I posted earlier, and it will be much more effective. For example, depending on your subject, you could be more formal/informal to match their personality. You could ask for more money because you know the company has had a good year, or they have acquired domains in the last few months for prices above $10k. Knowing information like this puts you in a much better position than the guessing game you are playing without it.
The same principle of ”knowledge is power” also applies to buying a domain name. Does your seller need money fast? If so, you can bid lower and offer instant payment to grab a domain below market value. Is your opponent comfortable holding on to the domain name that you want for years? What did they pay for the domain name? Are they a novice or an experienced domainer? Knowing the answers to these questions will help you extract higher value from domain transactions.
Succeeding at domaining, much like at online poker, requires embarking on a continuous quest for information. I cannot stress this enough: knowing as much as you can about your opponent (and controlling what he knows about you) is the key to successful negotiating and domaining. By having more information than your opponent, you can make more effective decisions and win bigger and more often.
Let me know if you like this blog post by clicking Thanks or Like. Have a question? Comment below.
Look at the picture above. Two poker players fight for first place. One will win and one will lose. Let me ask you a question.
Who has the advantage: the player that acts first or the player that acts second?
The right answer is that it is always an advantage to act last. Why? Because you are acting on more information than your opponent. When acting first, you are completely in the dark. You have no way to know if he holds squadoosh or pocket aces. However, after an opponent’s move, you know more about his hand strength (e.g., if he folded, it was weak; if he raised, it is probably strong; and if he called, it is likely somewhere in-between).
Does the game change when you know your opponent never bluffs? Definitely!
Would you play better if you narrowed down his hand to only three possibilities? You bet!
Is the game easier if you know your opponent is bluffing? Oh yes!
Information is key. The more you know about your opponent, the better decisions you can make.
You can apply the same principle to domaining. Negotiating a deal with someone is similar to playing poker against that person. He is an opponent, because he wants the opposite of what you want. You want a lot of money for your domain name, and he wants it for as little as possible, preferably for free.
If you don't know anything about your opponents, you will make different decisions than you will if you know a thing or two about them.
In poker, if you have no information, you would start by playing a Game Theory Optimal (GTO) style, which is a strategy that yields the highest possible expected value when accounting for an opponent to perform optimal moves. If both parties employ this strategy, neither can be be exploited and neither can exploit the other. Thus, this strategy does not maximize profits.
Similarly, in domaining without any information, your first move is to send a generic email like:
Hi,
Hope you are well. I just want to let you know that I'm selling domain name X. This can be a wonderful opportunity for you. Please let me know if you are interested.
Regards,
Hope you are well. I just want to let you know that I'm selling domain name X. This can be a wonderful opportunity for you. Please let me know if you are interested.
Regards,
An email like this will make contact, but nothing more. If potential buyers are really interested in the domain name, it won’t scare them away, and they will likely respond.
However, 95% of buyers will need you to explain how buying your domain name will benefit them. In order to effectively pitch your domain to buyers, you need to gain information about them.
In online poker, you monitor tells and opponents’ betting patterns, and then employ HUDs (Heads Up Displays that track important game statistics) to help you make informed decisions.
In domaining, you should also monitor key information to improve your decisions. Learn as much as you can about your opponents, such as:
About the Company
- What products do they sell?
- How long have they been in business?
- Do they spend a lot of money on marketing?
- Do they buy advertising space?
- Have they made any prior domain name purchases?
- Have they had a good year, or could they be short on liquidity?
About Your Direct Opponents
- What is their background?
- What kind of person are they (are they detail oriented, or not?)?
- Do they make domain purchasing decisions themselves?
- Do they have a big or small ego?
If you know the answers to these questions, you can write an email that will look completely different from the stock example I posted earlier, and it will be much more effective. For example, depending on your subject, you could be more formal/informal to match their personality. You could ask for more money because you know the company has had a good year, or they have acquired domains in the last few months for prices above $10k. Knowing information like this puts you in a much better position than the guessing game you are playing without it.
The same principle of ”knowledge is power” also applies to buying a domain name. Does your seller need money fast? If so, you can bid lower and offer instant payment to grab a domain below market value. Is your opponent comfortable holding on to the domain name that you want for years? What did they pay for the domain name? Are they a novice or an experienced domainer? Knowing the answers to these questions will help you extract higher value from domain transactions.
Succeeding at domaining, much like at online poker, requires embarking on a continuous quest for information. I cannot stress this enough: knowing as much as you can about your opponent (and controlling what he knows about you) is the key to successful negotiating and domaining. By having more information than your opponent, you can make more effective decisions and win bigger and more often.
Let me know if you like this blog post by clicking Thanks or Like. Have a question? Comment below.
Thanks!
