DAN.com

Biases and domaining: What can we learn?

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Aug 1, 2020

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  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    I have been exploring more about negotiations, the psychology behind it, and so on, after I recently blew up 2 deals while doing outbound (it was either my fault, or the buyer wasn't interested; but I was the one who was at a loss, given that the names were $2 hand reg which had limited visibility).

    For those of you who are not aware of biases, here is a video that you should invest some 12 minutes watching. I am thinking of applying some of these, the next time I am on the table, negotiating a sale.


    Here is how it works:

    Let us look at the first kind of bias, the ANCHORING BIAS

    Anchoring bias is the bias that is driven by the first number that comes up, such that it drives the decision. In domaining, it plays out in a way when we put out our first ask, during an enquiry.

    If the question comes up from the buyer's end, as to "How much are you looking at, for this domain?", how do you respond to that query. Your response will decide whether you leave a lot of money on the table, quote too high and lose the deal or you end up winning the deal and making a great ROI, extracting the full value from the buyer.

    Based on my research so far, one of the most important things to do, is to make the buyer feel that they are the smarter ones of the lot!
    And for that, your opening price is very important, as it ANCHORS the counter offer from the buyer. Which makes it all the more important to research any of their previous acquisitions from reverse WHOIS, their current business and the pocket size, the benefits of your domain name for their business and accordingly, quote a number (and may/may not highlight the benefits that they may derive from this sale).

    I am going to try this out, the next time in my deal and try to understand the right price range for the buyer.
    Any of these that you have tried during your negotiation and would like to share your experience about the same? Like a hindsight bias where you referred to a previous negotiation or sale, to price another domain that sold. And so on?
     
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  2. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Your thoughts?
     
  3. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi

    my thoughts:

    abject stupidity, again

    most important, is buying the right domains.

    and if a potential buyer contacts you, then they were smart enough to know what they want,
    and you were smart enough to put yourself in position to sell it to them.

    the last thing a buyer wants is someone trying to manipulate their emotions.
    as they may already be apprehensive, depending on method of contact used and how savvy they are or not, with the process.
    however, once the transaction is completed, they will be filled with joy.

    your job is to be display confidence in product and price, and experience in the process of domain transfers and transactions.

    imo....
     
  4. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    It depends on your portfolio. I see that you own some premium names. Not everyone would. Which is where selling becomes important.
     
  5. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    I am well versed in negotiation and have read many books on it, but with that said I think a lot of your posts about the psychology, negotiation, and tactics kind of miss the point.

    It is not like you are selling a vacuum, where everyone has a need and understands what it does and a rough idea of the cost.

    Selling domains is far different. The average person has no need or is content with what they have.

    These type of negotiation tactics work when you have an interested buyer on the hook. Without quality domains it doesn't happen.

    If you have domains that are in demand they largely sell themselves.

    Basically buy quality domains and the rest tends to take care of itself. I have known people who are terrible at negotiation, but had great assets. That is a better position to be in than be great at negotiation with terrible assets.

    Back to the original point. If I get a terrible offer I either ignore it or dismiss it quickly.
    It is not hard to tell who is a potential serious buyer and who isn't.

    If the buyer wants to come back with a serious offer they can.

    Brad
     
    Last edited: Aug 31, 2020
  6. Rich

    Rich Top Contributor VIP ★★★★★★★★★★

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    That part right there..I'd be a domain broker if I could sell water in the desert, thankfully I can pick a good domain. :)
     
  7. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    That is certainly true! If you own a good asset, nothing like it! But how many of those people starting off or 1 month down the line, do you think can afford a great asset. They won't!
    Hence, it is important to put those names (which may not be the best) in front of the prospects. And proactively make the sale.
     
  8. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi

    if you read your own words above, from end to beginning
    you might see the part that you keep missing, over and over again

    seriously, how can one who is starting off or 1 month down the line, really know enough about domain names, to be in position to acquire or know what is a "great asset"?

    that, alone, is the root fallacy of the premise.

    time and timing, in one of the greatest factors that can affect buying and selling of domain names.
    as in when you acquire and when you sell and over time, decent assets can become good to great assets.
    and in reverse, some great assets in periods of time, can loose value over time, if they peaked at a moment in time...and you didn't sell, during that time.
    ie: chips

    that's just one aspect!
    then there is the contrary assumption of "capital" that a "newbie" can bring to the table....
    when you think about their ability to "afford" a great asset.

    they may be able to afford one/some, but knowledge, if not inherent, will be the barrier or hurdle to overcome.

    in either situation, whether they have capital or not, both will need to have knowledge and understanding of what is a great asset, before they can proceed to acquire one.

    all of that happens in time, not 1 month in.
    domaining, is not a snapshot.

    so, basically, you create your own biases, thru your ignorance, the assumptions and the naivety of what you're trying to participate in.
    the more you learn and experience, the more you'll be able to rationalize it.

    puff puff.....


    imo...
     
  9. Rick Ace

    Rick Ace Top Contributor VIP

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    That's a good point to make about people just starting off. I've been in this for well over a decade and I still learn new things everyday. Being in IT and domains means familiarizing yourself with sales trends and values in a constantly changing market.
     

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