Domain Negotiation Tips

[TCK]

I don't know if there is a thread for this topic so I am starting one. There is much talk about finding end users. But how do you handle the situation where the end user contacts you so as to get top dollar without turning off the potential buyer at the same time?

There are many scenarios within this type of situation. For example, many domainers use average monthly type-in's, CPC/PPC rates, extension, length, local and global search volume, prior sales of similar name, etc., as indicators.

To start things off, suppose you own a short brandable dot com name that is also an acronym (not very popular mind you but definitely brand worthy) that gets about a dozen visitors per day. Who knows exactly why they came. PPC is ZERO to the parked page. Now, a little known company registers every other extension. Then someone contacts you (does not indicate in any way to be connected with that company) and tries to sell you a sob story as to why you should sell the domain at their low-ball offer. How do you handle this scenario. (As you can see, I had a lot of time on my hands today. )

 

[NetOctave]

While you will always hear "A domain is worth what a user will pay", sometimes a domain is worth "What A seller is willing to sell it for".

We normally have a rough price in mind. Its usually a range, say "1k to 2K"
(Disclaimer - Most of our sales are for developed web sites, so your mileage might vary)

- A low ball offer - We reply with "Thank you for the offer. We see more potential for the name than your offer. Please provide a reasonable value". Never reply them with a price. Let them propose the higher price. If its still low ball, don't reply because they are wasting your time.

- If you receive a high offer, just be cautious. And delete and add the mail to spam if they ask for a valuation and remove them from your address book.

- A reasonable offer close to our range is replied with we will only sell for "3k+". This is slightly above our estimated price. If they are serious they will reply else they will just dissappear.

- An offer within our range is countered with a slightly higher value that can be negotiated later. THis is to avoid any buyer's remorse that could happen later and have the deal fall through.

Always update your domain valuation based on industry trend and investigate your buyer.

 

[TCK]

Thanks for the post nmridul. Makes sense to me.

However, suppose you receive 1000 offer via Sedo (and the prospect found you via GoDaddy because the 2 platforms have joined) but the fees make it not worth your while. So you counter with 2000. The buyer counters with the same amount again, 1000. You don't want to waste your time, so you cancel the negotiation (and maybe even remove the domain from Sedo). The buyer contacts you via Whois. After a few back-and-forths, you realize the buyer really wants the domain. Without you specifying any amount, the buyer tells you they are willing to pay 2000 and says that this was your last offer. At this point you know you are leaving money on the table. What do you do?

 

[SlimPickins]

in your last scenario, it really isn't important what your "LAST" offer was..... they did not seize the chance to purchase the domain at that price, negotiations were cancelled. So, therefore, that price is no longer valid and, somewhat more harsh, irrelevant. Now, if you as seller WANT to sell the domain for this price still rather than risk blowing the sale, then you could graciously do so. But are by no means obligated to do so and could opt not to sell it due to a new/previous development plan or raise the price due to recent interest in the domain etc.

Endusers are a finicky beast. I recently received an offer via GD's broker service for a domain that does NOT have private whois and is redirected to a sales page where someone can make an offer directly. BUT, this interested party opted instead to make an anonymous offer, at a cost of $70 for GD to inquire whether the domain is for sale and handle negotiations to make an offer of....... drumroll....... $125!! I of course figured that if someone would prefer to pay $70 just to stay anonymous and make an inquiry that there would be more money on the table then that. I countered $10K, and never heard back lol. They paid to make an offer, I set the price ceiling, and they didn't even raise their offer $5 after throwing away $70 just to ask if it is for sale. But so goes it.

Your scenario is much better, when they have reached out a few times, are finally coming up to a price you were originally happy to sell for, but are not now obligated to do so. Good luck!

 

[GiftedDomains]

There is really no perfect way or right way to negotiate.
It depends on so many factors. You and your strategy, the domain, the buyer, the price, etc. etc...
However there are things that you should avoid:
Never act as if you are desperate to sell (even if you are and even if you need money).
Don't be fickle. Be Steady. Don't change your price daily, a litte greed is ok but don't exaggerate.

In the last scenario i personally would accept the 2K offer, even though i wouldn't be obliged to hold my 2k Sedo price. But now all the escrow fees must be paid by the buyer, whereas if he would have accepted my 2k offer at Sedo, i would have paid the fees.

 

[TCK]

Thanks for the feedback. Any thoughts on provisioning a payment plan where the end user can pay the full amount in separate payments?