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Lesson Learnt: What not to do during negotiation

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Jul 26, 2020

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  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    I was in the negotiation process of a domain name that the buyer had shown interest in.
    I had outbound it with a tag of $249 and the buyer had said I'll pay $175. We agreed on that since I knew that if the buyer doesn't buy this today, I might end up not selling it at all.

    So I took whatever their offer was. Then, the buyer said how to go about the transaction.
    I explained how to make the payment via PayPal, then share the registrar email address and the domain will be pushed.

    No response for the next 6 hours. It was morning in their time zone. So I dropped another email. No response for the next 12 hours.
    Another mail about the payment or something. No response.
    I waited for a day. No response yet.
    So I said that I received another offer. I haven't opened dialogue yet. Awaiting your response before discussing it with the other party. Will wait for another 12 hours before responding to them and starting to negotiate.

    I was bluffing. But it didn't work.
    I guess the buyer put me on mute/spam for whatever reasons. Didn't receive any response from the buyer for another 7 days. I believe the deal is off.

    Here are some of the things I could think of:

    1) I emailed too often - 3 emails with a day and a half.
    2) I emailed too quickly to their response (While they replied once in 2 days, I replied within 20 minutes). May have made me seem desperate.
    3) I played the another offer card - May have pissed off the buyer that I am playing this buy it or leave it card.
    4) You pay first - Many buyer feel uncomfortable about paying first. I think some of them may even think of this as a scam when you ask them to pay first.

    I think the first 3 are the major faults of mine here. It showed that I am desperate. Never do that! Even after the deal. I think that's why people say, never accept the first offer (analogy). It makes the buyer seem like a fool. He isn't ready for that, by human nature.

    Could you spot more errors here?
     
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  2. AEProgram

    AEProgram Top Contributor VIP Blue Account

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    The buyer could have lost interest before you sent one email reminder.

    When you have a name for sale for 500 and the buyer offers 300 never say yes, always counter that with 375 or else if you just agree for the 300 a percentage of buyers will think they could've said 200 and you would have accepted and then they get cold feet, especially if they are sharing the events with friends or family.

    Also, when you do outbound, and its listed on ebay buy now / make offer, you could auto accept their price if their offer is above a certain amount and they must pay.

    One last try I would suggest is to list it on Dan / Ebay / Afternic or any place that has a easy buy now and list it with the 175 price and email the buyer saying that you listed it publicly and whoever buys it first gets the name. Make sure to mention it in the email subject "MYdomain.com is now listed on..."
     
  3. Windoms

    Windoms Top Contributor VIP

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    Importing lead on DAN was the least you could do..
     
  4. pb

    pb Established Member ★★★★★★★★★★

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    Not using a trusted escrow service. They exist for a reason...
     
  5. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    This could definitely have been the issue. Lots of potential things to consider if you're asking the buyer to pay before transfer:
    • Are you using a professional email address? Gmail, Yahoo, etc are fishy looking.
    • Do you have a professional signature in your emails that includes full name, phone number, business name, etc? This adds credibility.
    • Is English your first language? If not, and you're dealing with an English buyer, then not being fluent could add to a feeling of unease.
    When doing outbound, I always at least provide the option of sending the name before receiving payment. You're the one soliciting them... they have no reason to be suspected as a possible scammer. They're running a business.
     
  6. karmaco

    karmaco Top Contributor VIP

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    This buyer was likely never going to buy. Lots of flakes out there and happens all the time. I would never push the name first. Thats a recipe for disaster. It should not be weird or uncomfortable. Where do you get something before you pay? Very few places.Just set a buy it now and move on.
     
  7. Josytal

    Josytal Top Contributor VIP

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    To sum it up, don't be desperate to sell.
    Odd as it may sound, selling is not selling, selling is communicating.
    Planned communication.
     
  8. BrandPlease

    BrandPlease BrandPlease.com VIP Gold Account

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    Best bet is to just make your follow up email/offer accepted confirm with a link to an Escrow (or payment) transaction. Hopefully the reply will be the transaction started.
     
  9. keston57

    keston57 Established Member

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    Buyers are very unpredictable, they ask you how much and go mute, there are a number of reasons for this, you can never know all the reasons, what is most important is to have clear cut rules for conducting your business. If a negotiation stalls list it in a marketplace and move on, you get feedback through your email.
     
  10. lovely4ever

    lovely4ever Established Member

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    maybe corona virus hit him lol :ROFL:

    Since the buyer replied first time and was intrested that means he liked your domain , But after disappearing
    and ignoring this way , then no more discount for him and set the price back to $249 BIN on any lander and move on .
    He may come back later after some times to buy it direct at BIN .
     
    Last edited: Jul 26, 2020
  11. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    This is one of the biggest falsehoods that I've seen domainers spread around on the forum. I invite someone (anyone!) to tell a personal story of disaster that has happened to them in this situation.

    Domainers conducting outbound need to know that demanding payment before sending the name is absolutely fishy, and borderline unprofessional.

    You are the one soliciting.

    You are a total stranger.

    Buying domains is often an unfamiliar and rare transaction for buyers when you're doing outbound.

    This means that you are the one who needs to be prepared to show trust first. Online scams are real and they happen often. Buyers have every reason to be suspicious of you, while you have absolutely no reason to be suspicious of them.

    They're professionals running a business. You be a professional too and show some good faith by offering to send the name first. They will pay.
    People/businesses who give you stuff before you pay:
    • Restaurants
    • Contractors
    • Hair stylists
    • Taxi drivers
    • Landscapers
    • Babysitters
    • Tailors
    • Nail salons
     
    Last edited: Jul 26, 2020
  12. bmugford

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

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    Without a doubt. It is not reasonable to send a follow-up email after only (6) hours. People are busy.
    That is just annoying.

    I think the absolute earliest you should follow-up is (24) hours, then maybe (3) days. After that just move on, the deal is not likely to happen.

    While I am often slow to respond, it is in no way related to the psychology. I am just lazy at times.
    I don't think responding in a timely manner is a negative. Most people will appreciate that.

    Yes, this was a mistake. This is just trying to use social proof to compel a buyer. It is not likely to work, especially if it is not believable.

    If you are initiating contact with a potential buyer, especially with a low $XXX domain, I would personally be prepared to push the domain first. You really have no established credibility to expect the buyer to pay first.

    Either that or use an escrow service.

    Brad
     
    Last edited: Jul 27, 2020
  13. Samer

    Samer Top Contributor VIP

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    Yup, never be too eager.

    Samer
     
    Last edited: Jul 27, 2020
  14. bmugford

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

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    I have had some instances where I pushed a domain first for any number of reasons. The vast majority of them have no issues. I have had a handful where the buyer all of a sudden becomes less responsive when they have possession, but never had an issue with a buyer not paying.

    I can't imagine many people not paying. It is theft by deception or outright fraud.
    The buyer could face major legal ramifications.

    Brad
     
    Last edited: Jul 27, 2020
  15. 3sixty

    3sixty Established Member

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    If it is a low XXXs purchase then no harm using PayPal and having them pay first. Make it known that it is basically risk free for the buyer as if they are not happy then PayPal works for the buyer in regards to disputes/refunds, and not the seller. Meantion, you only use PayPal on lower end sales and usually use Escrow, but if they prefer the .

    Paypal includes an invoice option as well, so no need to overthink asking them to pay first.

    Big mistake was to bluff. Not necessarily that the buyer read it as a bluff, but just because I don't find it good karma to lie to close the deal. There is no harm in a short and direct like "Hi Joe, Haven't heard from you since we agreed to your purchase of xxx.com. Let me know when you're ready to complete. [Name]
     
    Last edited: Jul 27, 2020
  16. CraigD

    CraigD 360promo.com VIP

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    Personally, I would not be posting about your strategies with ongoing deals on a public forum - or anywhere for that matter - as your client could be either someone on NP or anyone who finds this page via organic search.
     
  17. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    I agree !00% and was surprised that more did not comment on this aspect of the OP.

    In my mind it is never right to lie or deceive. Let's say you were buying a house, would you like it if the real estate agent said there is already a $425,000 offer when there is not one? Pretty sure it is against real estate ethical guidelines. You might say only a few $$$ here so it is a different situation. But to me ethically it is not the $$$ involved but what is right or wrong. Don't bluff with false information.

    All is not fair in love and domaining!

    Bob
     
    Last edited: Jul 27, 2020
  18. namemarket

    namemarket Top Contributor VIP ★★★★★★★★★★

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    I am fairly certain that's the main reason. It's best to use escrow even for a $175 sale, imo.
     
  19. 7363824

    7363824 Restricted (85-100%) Gold Account

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    1. I agree that seems a bit much.

    2. Maybe, but I've also lost a deal because I took too long to respond...so idk what a good time frame is but lots of businesses that capture leads online will respond very quickly. And ruthlessly for that matter.

    3.that honestly imo seems the most likely option. I for one avoid that. That one time I did use it I did have another legit higher offer and their offer was too low for me to accept as is anyway.

    4. Thats how business works. Unless you negotiate credit terms that is which for a one off sale isn't likely. Maybe you could have told them you'd accept escrow.com if they pay the fees.
     
  20. topdom

    topdom Top Contributor VIP

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    If it was inbound, maybe "you pay first and then I push" could work, but in outbound, potential buyers are already suspecting you might be a scammer, and by your demanding payment first, their doubdts are "confirmed".
    I would use a marketplace. This way both of you would be protected.
    You could say, I accept your offer if you pay the fees and then the total cost would be this much, and in direct sale fees would be zero.
     
    Last edited: Jul 27, 2020
  21. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Thanks! Very valid point indeed. Will do that!

    Noted! That's correct. I didn't know there are Escrow services with 9% as commission only.

    It was gmail. Signature was professional, definitely! Yes, english was fine, I believe. Makes sense. I gotta try a number of things.
     
  22. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Your point looks valid. I may try this out at the cost of losing a domain. Let me see what works, what doesn't. Worst/Best case, it will be a lesson learnt.

    Ya, but would you do that for a $299 domain. You wouldn't! And the buyer might know that. But I definitely am gonna try to push the domain first now.
     
  23. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Already tries the PayPal bit. The second part, I believe, is part of a lot of business deals. I think that accelerates the process before the buyer changes their mind. But then again, I am new. So, I'll try things out.

    But would they know the domain name? I don't think so. There is no mention of the domain name here.

    I disagree on this part, Bob! A lot of deals happen when you show that there are multiple parties to either accelerate the process or keep the buyer motivated.
    It is debatable whether it is ethically right or wrong, as long as I am respecting the price I have shared with the buyer and they haven't responded after making a deal.
     
  24. Joe Nichols

    Joe Nichols Common sense consultant VIP

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    I would set up an email on one of your own domains, and just create a basic company home page (on Efty, or even on DAN). I think there are some sites where you can even host an email address for free with your domain.
     
  25. biggie

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

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    Hi

    yeah, outspamming

    when you send solicitations, then all of what you experienced can happen

    for incoming, it's less mess, than what you had to deal with

    those who contact you, expect to pay first
    therefore, they already put some trust in you, simply because you have what they want.... and they want to get it in their possession
    additionally, leverage is on your side, as you're the one calling the shots on price and how/where payments will be made.

    imo...
     

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