discuss Negotiation - Engaging the buyer

[Joe N]

Hey all,

If you're anything like me, one thing that continues to baffle you as a domain seller is the art of negotiation. I've read some good discussions about negotiating techniques on NP, but very often those threads are filled with generic info (and lacking in specifics). Here are some examples:

• Find out as much as you can about the buyer
• Use clues in the buyers' responses to measure your own response
• Don't jump into price talk right away... get the buyer talking
• Set a hard price line in your head before you start negotiations, and be willing to walk away

This advice is all very valuable, but without a sales background of my own, and as a relatively new domainer, I find myself struggling to fill in the gaps that tell me exactly how I should go about applying the above advice.

So tonight I took the plunge into trying to be more engaged with a potential buyer. I'm hoping to use the opportunity to share the process with everyone, get some constructive criticism, and ultimately learn to be a better negotiator.

The name

The name is a short, two word .com. It's brandable, and is used by some existing businesses (none major). It also carries an additional meaning which could add some value to the right buyer.

I've owned it for about a year and a half. It's over 10 years old. I'm quite fond of it, and not in a hurry to part with it. I have conducted some outbound and received lukewarm interest. This is the first inbound offer it has received.

The price

I've had it listed in the 10K range on my Efty page most of the time that I've owned it (and higher at the usual marketplaces). That said, I would accept 5K for the name.

The buyer

The potential buyer made his offer via my Efty page. He offered $100 with a simple message: "Looking to purchase domain".

I did some research. The buyer is in the U.S., young-ish (mid 30s to 40), and is the president of a digital media/marketing company with 15 employees. I can see no direct connection to his interest in the name, except that he used to be VP of a company in an industry that would work for the domain in question. My assumption is that he's considering names for a client, but it's possible it could be for his own use.

My response

Here's my initial response to the buyer, word for word.

Hey <name>,

Thanks for the interest in <domain>. I love the name myself, and think it makes for a great, memorable brand. Are you looking at it for an existing business, or as an option for a startup?

The domain is currently listed at a couple marketplaces with a buy now price of $12,500, which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge). So with that said, if you're serious about the name, I'm certainly open to four figure offers.

Feel free to give me a call if you'd like to chat more, but I'll also be checking email on and off over the weekend.

Tell me what you think, let me know how I could have done better, and I'll keep everyone updated on the progress, if there is any.

 

[hxp]

Hey all,

If you're anything like me, one thing that continues to baffle you as a domain seller is the art of negotiation. I've read some good discussions about negotiating techniques on NP, but very often those threads are filled with generic info (and lacking in specifics). Here are some examples:

• Find out as much as you can about the buyer
• Use clues in the buyers' responses to measure your own response
• Don't jump into price talk right away... get the buyer talking
• Set a hard price line in your head before you start negotiations, and be willing to walk away

This advice is all very valuable, but without a sales background of my own, and as a relatively new domainer, I find myself struggling to fill in the gaps that tell me exactly how I should go about applying the above advice.

So tonight I took the plunge into trying to be more engaged with a potential buyer. I'm hoping to use the opportunity to share the process with everyone, get some constructive criticism, and ultimately learn to be a better negotiator.

The name

The name is a short, two word .com. It's brandable, and is used by some existing businesses (none major). It also carries an additional meaning which could add some value to the right buyer.

I've owned it for about a year and a half. It's over 10 years old. I'm quite fond of it, and not in a hurry to part with it. I have conducted some outbound and received lukewarm interest. This is the first inbound offer it has received.

The price

I've had it listed in the 10K range on my Efty page most of the time that I've owned it (and higher at the usual marketplaces). That said, I would accept 5K for the name.

The buyer

The potential buyer made his offer via my Efty page. He offered $100 with a simple message: "Looking to purchase domain".

I did some research. The buyer is in the U.S., young-ish (mid 30s to 40), and is the president of a digital media/marketing company with 15 employees. I can see no direct connection to his interest in the name, except that he used to be VP of a company in an industry that would work for the domain in question. My assumption is that he's considering names for a client, but it's possible it could be for his own use.

My response

Here's my initial response to the buyer, word for word.



Tell me what you think, let me know how I could have done better, and I'll keep everyone updated on the progress, if there is any.

Great response. Very friendly and open.

The only area where I might change something is:

"...which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge)."

I feel like you're kind of shooting yourself in the foot by devaluing your own price. But, at the same time, it's a good way to get the buyer to feel more comfortable and hit you with an offer. It's also a good way to introduce the idea of going the private route (without selling through a marketplace). I guess only time can tell...

Keep us updated!

 

[Joe N]

Great response. Very friendly and open.

The only area where I might change something is:

"...which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge)."

I feel like you're kind of shooting yourself in the foot by devaluing your own price. But, at the same time, it's a good way to get the buyer to feel more comfortable and hit you with an offer. It's also a good way to introduce the idea of going the private route (without selling through a marketplace). I guess only time can tell...

Keep us updated!

Thanks for the feedback! I agree that I might be shooting myself in the foot... My hope is indeed to induce a sense of comfort and to avoid commission. Also, I set that price knowing it was a bit of a pipe dream. I'd be happy with 5K, and super happy with 7.5K!

 

[karmaco]

I applaud you for even responding to a $100 offer.

The response sounds very eager. Which can be good or not so good. This is just me but I try to sound very neutral and keep things business only. Especially on a tire kicking offer.

Negotiation can be much easier if you have the opening offer a lot closer to what you are willing to sell for and have the buy it now over what you want. (If you use BIN)

The fact that you investigated the guy and he can afford a better price was very wise.

 

[Joe N]

I applaud you for even responding to a $100 offer.

The response sounds very eager. Which can be good or not so good. This is just me but I try to sound very neutral and keep things business only. Especially on a tire kicking offer.

Negotiation can be much easier if you have the opening offer a lot closer to what you are willing to sell for and have the buy it now over what you want. (If you use BIN)

The fact that you investigated the guy and he can afford a better price was very wise.

Hmm... I was going for slightly casual and engaging, but hadn't considered that I might be coming off as eager.

I usually give a pretty short response to a $100 offer, but the research told me that there might be more to this one. I've also read accounts of other sales that started with a small offer and ended much higher. My hope is that this was just his way of starting a discussion. Of course there's always the chance he's just looking for a cheap domain to mess around with.

Thanks for the feedback.

 

[anantj]

Did they reply? What happened next?

 

[Joe N]

No reply yet! I followed up once already. Will probably follow up once more and then leave it.

Would like to call, but no phone number was provided.

 

[WatchDogue]

IMO a would-be buyer may prefer not to or want to disclose why they want a particular name, for fear of driving up the purchase price or giving up too much insider data that can be used against his bargaining position.

- "Thanks for the interest in <domain>. I love the name myself, and think it makes for a great, memorable brand. Are you looking at it for an existing business, or as an option for a startup?

Also IMO, avoid stating the name is priced " admittedly quite high " perhaps offer instead a willingness to negotiate the Buy Now price to a more mutually agreeable purchase price.

- " The domain is currently listed at a couple marketplaces with a buy now price of $12,500, which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge). So with that said, if you're serious about the name, I'm certainly open to four figure offers. "

I tried to always remain in a " business friendly with firmness mode" when I was negotiating, as opposed to being too one-to-one friendly and conversational when doing a business deal.

For the most part my "for sale" domains are now " Buy Now " priced, I'm anonymous, and have preferred to limit the names I negotiate prices on to just a couple dozen or so.

 

[biggie]

No reply yet! I followed up once already. Will probably follow up once more and then leave it.

Would like to call, but no phone number was provided.

Hi

I suggest you read this thread below:

https://www.namepros.com/threads/co...user-how-long-do-i-wait.1072298/#post-6635131

imo....

 

[Joe N]

IMO a would-be buyer may prefer not to or want to disclose why they want a particular name, for fear of driving up the purchase price or giving up too much insider data that can be used against his bargaining position.

- "Thanks for the interest in <domain>. I love the name myself, and think it makes for a great, memorable brand. Are you looking at it for an existing business, or as an option for a startup?

Love hearing all the different opinions. I've typically approached sales the same way as you, but decided to try something a bit different this time since most seasoned negotiators recommend talking about anything but price in order to help the buyer to feel more comfortable, and to extract as much information as possible. So perhaps my approach was too direct?

Also IMO, avoid stating the name is priced " admittedly quite high " perhaps offer instead a willingness to negotiate the Buy Now price to a more mutually agreeable purchase price.

- " The domain is currently listed at a couple marketplaces with a buy now price of $12,500, which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge). So with that said, if you're serious about the name, I'm certainly open to four figure offers. "

Agreed. This is another departure from my norm. My thinking is this... I have a price I want, and it's much less than the listed BIN. So by undermining by own initial asking price, I'm hoping to set the buyer at ease and have him think positively about the idea of "meeting in the middle"; creating a sense of camaraderie, like we're working together on the price.

Thanks for the feedback!

 

[Joe N]

Hi

I suggest you read this thread below:

https://www.namepros.com/threads/co...user-how-long-do-i-wait.1072298/#post-6635131

imo....

Thanks Biggie! I agree that following up could hurt your leverage if you're hoping to maximize price. In my case, I'm aiming for my minimum acceptable sell price, so I think my leverage is okay as long as I'm unwilling to waiver from that.

 

[Kate]

The domain is currently listed at a couple marketplaces with a buy now price of $12,500, which is admittedly quite high (and with consideration given to the rather hefty commissions those sites charge). So with that said, if you're serious about the name, I'm certainly open to four figure offers.

1. You shouldn't apologize for asking a high price, unless it is totally out of touch with the market.
2. I see a potential problem from the POV of the potential buyer. You have listed the name at Efty for 10K but 12.5K elsewhere. Of course there are fees but the buyer who is unaware could be under the impression that your stance on pricing is not firm and consistent. The fact that it's listed at other venues is not relevant here. Don't distract the buyer. Lock him in

 

[Joe N]

1. You shouldn't apologize for asking a high price, unless it is totally out of touch with the market.
2. I see a potential problem from the POV of the potential buyer. You have listed the name at Efty for 10K but 12.5K elsewhere. Of course there are fees but the buyer who is unaware could be under the impression that your stance on pricing is not firm and consistent. The fact that it's listed at other venues is not relevant here. Don't distract the buyer. Lock him in

Yeah, I do that pretty regularly... hoping that the buyer will see the lower price on Efty and use that avenue to make the purchase since they're getting the better price there.

One of my biggest struggles is still pricing my names. In the case of this name, I'd love to get five figures, but I don't think the price is warranted for the name. Perhaps that means I shouldn't be listing it that high...

 

[Coinking]

Great response, I hope he will increase the offer.