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I have been reading a lot about negotiations lately especially after our last MOCK NEGOTIATION here at NamePros.
Here are 2 interesting concepts to think about before quoting a price for an offer on your domain name:
BATNA - Best Alternative to No Agreement
aka, What will you do if the negotiations fail? And you need to have a plan for it.
For example, if you do not accept the $700 offer on your domain name, and the deal doesn't happen,
ZOPA - Zone of Possible Agreement
As a buyer, if the max that you can go is $10,000 and the minimum that the seller can do is $12,000, there is a possible overlap and there may be a deal!
But if the max a buyer can pay is $8,000 and min that the seller can do is $10,000, there is no possibility of a deal.
So, a good practice after buying a domain name could be to create an Excel and add your minimum price for the domain name that you own. That will clearly define your vision. Of course, this minimum can be revised depending on other sales in your portfolio, trends etc. but having one such number will help you know your minimum for the domain name.
Since @Soofi and myself didn't have a ZOPA in our prices, the deal didn't happen. And that's alright!
For those interested in reading further, here is an article you can refer that will help you with negotiations in general:
https://corporatefinanceinstitute.com/resources/knowledge/deals/what-is-batna/
Here are 2 interesting concepts to think about before quoting a price for an offer on your domain name:
BATNA - Best Alternative to No Agreement
aka, What will you do if the negotiations fail? And you need to have a plan for it.
For example, if you do not accept the $700 offer on your domain name, and the deal doesn't happen,
- Are you going to renew the domain name for 3 years @$12 a year?
- Are you fairly confident that it is worth $3,000 and willing to wait for 3 years for that price?
- Will this domain name take precedence over other renewals?
- Is it a good domain name that can be sold via outbound later?
- Do you have another offer at hand, negotiating with 2 parties in parallel?
ZOPA - Zone of Possible Agreement
As a buyer, if the max that you can go is $10,000 and the minimum that the seller can do is $12,000, there is a possible overlap and there may be a deal!
But if the max a buyer can pay is $8,000 and min that the seller can do is $10,000, there is no possibility of a deal.
So, a good practice after buying a domain name could be to create an Excel and add your minimum price for the domain name that you own. That will clearly define your vision. Of course, this minimum can be revised depending on other sales in your portfolio, trends etc. but having one such number will help you know your minimum for the domain name.
Since @Soofi and myself didn't have a ZOPA in our prices, the deal didn't happen. And that's alright!
For those interested in reading further, here is an article you can refer that will help you with negotiations in general:
https://corporatefinanceinstitute.com/resources/knowledge/deals/what-is-batna/