Domain Name Negotiation Strategy

[richface]

What is the best negotiation tactic when you generate a lead for a domain, find out the buyer is interested, Then the most important part is when they ask how much you want for the domain?

In my experience asking the buyer to make an offer first gets more success.
When I have usually quoted a price first only a handful reply back. And when you start too high is hard to salvage any deal. Start too low and also you might lose out.

Would you show your hand first? Anyone has any thoughts on the best negotiation technique? or advice?

Many Thanks

 

[alien51]

sometimes I send emails out Initially to see if potential buyers will be Interested and most of the time they reply back with an offer

Are these "potential buyers" of yours who reply back with an offer, domainers or end-users?

I'm not exactly sure how an end-user who is happy and contented with his life doing his business, suddenly receives a solicitation to buy another domain from your email message, then immediately gives you an offer to buy it with a specific price without taking thorough review whether he actually needs another domain, or whether your domain will add value to his business (e.g. traffic, backlinks, catchy name).

I'm just saying what i think of regular end-users, is that they are focused on their business, and not exactly shopping for domains at any given time that they are ready to give an offer price as soon as a solicitation email gets in their inbox. So it's more likely you have targetted domainers?

I'm an end-user. I have received several emails like that before, and i simply deleted them without replying. For the simple reason that i'm not window-shopping for additional more domains at the time.

---------- Post added at 05:57 AM ---------- Previous post was at 05:50 AM ----------

This method generally will only work for the higher value domains anyways though.

That's true.

However, in the domaining industry "high value" can often become a grossly miscalculated and highly speculative parameter in the minds of the domain owner.

Which is why, some sellers play hardball for years looking for that million dollar payout... only to have the domain drop in the end.

I have picked up quite a few domains in the drop pool where i traced it was for sale previously at Sedo for like 15,000 or 20,000 dollars. I paid 7 bucks for them at Godaddy.

 

[DavidH]

The "potential buyers" who get back to me are all business owners with websites where the domain name on offer is particularly relevant to their business, which is why I contacted them in the first place.

It is always a numbers game and some recipients of my emails will be interested and some not. However if I keep on communicating with enough people, someone sooner or later will want to buy one of the names! It is just a question of getting through the gazillions of NO's to get to the next YES.

 

[alien51]

It is always a numbers game and some recipients of my emails will be interested and some not. However if I keep on communicating with enough people, someone sooner or later will want to buy one of the names! It is just a question of getting through the gazillions of NO's to get to the next YES.

That's exactly the principle behind the act of SPAMMING. Sooner or later, someone will reply to an email about a Nigerian prince selling Viagra.

The concept is the same. The end, justifies the means.

 

[DavidH]

That's exactly the principle behind the act of SPAMMING. Sooner or later, someone will reply to an email about a Nigerian prince selling Viagra.

The concept is the same. The end, justifies the means.

Unlike SPAM emails, my emails are individually crafted, individually addressed, individually sent and potentially highly relevant to the recipient.

While absolutely not condoning spam, the point I was trying to make was that you have to go through the rejections to find the person(s) who can see the benefit in the name for their organisation and is interested in buying it.

 

[alien51]

What i meant was, the "mechanism" or "scheme" or "how something works" --- can be practically identical no matter whether you use it for good or evil.

In fact, the price haggling and negotiation techniques posted here, can be no different from the price negotiations that go on in a Chinese flea market.