Whether you're conducting outbound sales or you have received an inbound enquiry, there will usually be one question that can dictate the course of negotiations: "How Much?". This is one of the most common phrases that you'll ever hear with regards to domain sales, but how do you respond to this? I've been trying to perfect the response to this question for quite some time.
There are two scenarios in which this question can arise; firstly during outbound sales, and secondly during an inbound enquiry. Let's start off by examining this question in an outbound sales enquiry.
You've done your research, you've sent your emails and you've received a response. Great so far, but that response just says: "How much?". To be in with a chance of closing a sale, you will have to answer this question directly. However, do you state a price straight away or do you ask for offers to be submitted?
There are cases for both approaches, but there are also risks involved with each strategy. By stating your price outright, it could be said that you're running the risk of either leaving money on the table, or immediately alienating the potential buyer by stating a price that's too high.
Another alternative could be to quote a price range, such as "I'm looking for a four figure offer to sell this name". Whilst this is a vague answer, it could be the start of a conversation that could end in a sale. In outbound sales, you'll always need to remember that you contacted them, so you'll need to be more direct with your responses.
I asked domain broker Hobi Michalec (@Hobi Michalec) for his views on how to approach this question in an outbound sales scenario. As a broker, Hobi has been involved with a number of high value transactions in the past few years, and as such, is more than qualified to answer this question:
"When I reach out to someone from an outbound standpoint my almost immediate response is, 'When are you available for a phone call to further discuss?' If possible, I will always prefer to speak on the phone as there's much I can infer. Are they the decision maker, how much more are they willing to offer, how much more discussion is necessary on their end, is the timing an issue with making a more 'realistic' offer, are they actually interested enough to make a serious offer?"
Hobi raises a very valid point here, that whilst email can get you so far, sometimes a phone call can let you tell more about the potential buyer than anything else. Often, far more information is gained over the phone that can help you to answer their initial question of "How Much?".
An inbound enquiry can mean a completely different strategy. In an inbound enquiry, you already know that the person that emailed you has had enough interest in your domain to either find your email address, or fill in an enquiry form. Sometimes, their initial enquiry may be accompanied with an offer.
If an offer doesn't arrive, you could play hard ball by just telling the interested party to make you an offer; if you have the inclination to keep ahold of your domain until the right offer comes along (à la Rick Schwartz), it could result in an offer eventually matching or surpassing your expectations.
You could also set a firm price for the domain, which, like our outbound example above, could result in money being left on the table, or alienating the potential buyer. Depending on your need for a sale, you could go for this approach, or tell the potential buyer that you are looking for an offer in a specific price range.
Again, I asked Hobi for his view on how to deal with the question of "How Much?" during an inbound enquiry:
"When it's an inbound lead the ball is in your court. I will still always try to call them. My objective is to call them ASAP, usually within a couple minutes. Should a phone call not be possible I will usually respond with, 'The Seller is looking for offers in the (blank) figures'. The conversation after that can go several ways. They can occasionally ask 'What does that mean?' 'Give me your price, I won't negotiate.' 'I need to know the price or else I can't speak with my team' etc."
Researching your potential buyer thoroughly can help you give informed decisions regarding pricing. As Hobi pointed out, sometimes a potential buyer will need a price to relay to their team. If you know that your buyer is a part of a large corporation, this knowledge may prompt you to give a more specific price to your inbound enquiry.
How do you respond to the question of "How much"? Post your opinions in the comments below.
There are two scenarios in which this question can arise; firstly during outbound sales, and secondly during an inbound enquiry. Let's start off by examining this question in an outbound sales enquiry.
You've done your research, you've sent your emails and you've received a response. Great so far, but that response just says: "How much?". To be in with a chance of closing a sale, you will have to answer this question directly. However, do you state a price straight away or do you ask for offers to be submitted?
There are cases for both approaches, but there are also risks involved with each strategy. By stating your price outright, it could be said that you're running the risk of either leaving money on the table, or immediately alienating the potential buyer by stating a price that's too high.
Another alternative could be to quote a price range, such as "I'm looking for a four figure offer to sell this name". Whilst this is a vague answer, it could be the start of a conversation that could end in a sale. In outbound sales, you'll always need to remember that you contacted them, so you'll need to be more direct with your responses.
I asked domain broker Hobi Michalec (@Hobi Michalec) for his views on how to approach this question in an outbound sales scenario. As a broker, Hobi has been involved with a number of high value transactions in the past few years, and as such, is more than qualified to answer this question:
"When I reach out to someone from an outbound standpoint my almost immediate response is, 'When are you available for a phone call to further discuss?' If possible, I will always prefer to speak on the phone as there's much I can infer. Are they the decision maker, how much more are they willing to offer, how much more discussion is necessary on their end, is the timing an issue with making a more 'realistic' offer, are they actually interested enough to make a serious offer?"
Hobi raises a very valid point here, that whilst email can get you so far, sometimes a phone call can let you tell more about the potential buyer than anything else. Often, far more information is gained over the phone that can help you to answer their initial question of "How Much?".
An inbound enquiry can mean a completely different strategy. In an inbound enquiry, you already know that the person that emailed you has had enough interest in your domain to either find your email address, or fill in an enquiry form. Sometimes, their initial enquiry may be accompanied with an offer.
If an offer doesn't arrive, you could play hard ball by just telling the interested party to make you an offer; if you have the inclination to keep ahold of your domain until the right offer comes along (à la Rick Schwartz), it could result in an offer eventually matching or surpassing your expectations.
You could also set a firm price for the domain, which, like our outbound example above, could result in money being left on the table, or alienating the potential buyer. Depending on your need for a sale, you could go for this approach, or tell the potential buyer that you are looking for an offer in a specific price range.
Again, I asked Hobi for his view on how to deal with the question of "How Much?" during an inbound enquiry:
"When it's an inbound lead the ball is in your court. I will still always try to call them. My objective is to call them ASAP, usually within a couple minutes. Should a phone call not be possible I will usually respond with, 'The Seller is looking for offers in the (blank) figures'. The conversation after that can go several ways. They can occasionally ask 'What does that mean?' 'Give me your price, I won't negotiate.' 'I need to know the price or else I can't speak with my team' etc."
Researching your potential buyer thoroughly can help you give informed decisions regarding pricing. As Hobi pointed out, sometimes a potential buyer will need a price to relay to their team. If you know that your buyer is a part of a large corporation, this knowledge may prompt you to give a more specific price to your inbound enquiry.
How do you respond to the question of "How much"? Post your opinions in the comments below.
