discuss Rick Schwartz approach to negotiations

[anf]

Hi, recently Rick Schwartz wrote a post about negotiation tactics: https://www.ricksblog.com/2010/09/h...e-part-two-20-ways-to-do-better/#.XxFzOCVRWCg

The first points:

1. DO NOT set a price right away
2. Don’t answer questions
3. Ask Questions

So, is anybody using this approach for $5K - $10K domains? For $10K-$20K domains?
Is it working?

From what I have seen on namepros posts, people quote price right away. I saw also negotiation examples on DNacademy, there price is quoted right away too.

So, what's your experience regarding the matter? What works better? If anyone is willing to provide examples of successful negotiations (like from $200 offer to $10K sale), I would love to see them. Thanks!

P.S. I am talking about inbound leads, outbound is a different story.

 

[NameBuyer.com]

I'm not sure if that was a little dig, but I've recently been involved in a 6 figure domain sale, so i am in that small percentage who can say they have been involved in 6 figure domain sale.

I've no problem with people who see Rick as a role model, can only speak for myself, whilst i read what he says, I can't say i have learned anything from him personally but as said no probs with people who do look up to Rick, his sales speak for themselves.

That wasn't meant specifically for you, but just a general observation and one that applied to me as well.

I'm not sure how to translate "involved". I was specifically saying most of those complaining about him have not purchased with their own money, a domain that is $5k, $42k, or $105k as he has, with the intention to resell the domain, yet we all have the ability to take that risk especially when the risk is funded by a prior domain sale.

His model is simply of buying a domain that "has great value" and extracting the most value out of it, or at minimum selling for 10X the amount paid. If you do as he did back in the day and put 18 domains on a card for $1,800 and try to sell those domains for 2X-10X the value, there really is not that much risk if someone puts some serious thought into their plan. Better yet, buy 1 and try to market it for 2 weeks before buying another. If someone is left with a mere $1,800 on a card, that still isn't a big deal for most. If it is a big deal, then the advice is simple. Don't do it.

Twitter's platform lets you throw ideas out there with limited characters. But if you read an idea that's intended to make you think differently or to get a specific point across, you still have to tie it back to the author's fundamental truths, rather than taking it out-of-context. If Rick writes something controversial, it's usually intended to make you think or take notice.

My two largest sales in that last 12 months of fluux(dot)com for $15,000 and PlanToGrow(dot)com for $24,500 were directly influenced by his advice, so his advice is definitely working for some of us. I'll take the $39,500 with no complaints.

Regarding the credit card, he was answering someone's question about what he would do now. He's not saying he'd recklessly put $50k on a card. He is just saying he'd do the same thing with his original plan. I can find $100 domains that are easily worth $2,000 to the right person.

In his follow up post he's suggesting to think, then think some more. Nothing reckless suggested.

 

[omelet]

Even when I approach end-users, I'll never mention a price to start out with. I always get them to make an offer first if I can.

but usually, they would send you "what about $50?"

 

[BigTree]

I remember when Rick wanted to prove some years ago on DomainSherpa that he still could hand register good domains. Then he registered many of them.
I watches those names he registered. He dropped them all within following years.

He owns great, unique names because he registered them long time ago, with those names probably any negotiation style would work.
People admires him for great sales, but how many of those domains were bought in recent years with current market conditions and modern necessary buying skills.
This admiration is simply for the past, which gone long time ago.

 

[Kingslayer]

In his follow up post he's suggesting to think, then think some more. Nothing reckless suggested.

Show attachment 161855

Maybe I'm being overcritical, but once again i disagree with this advice.

There's a saying, 'you snooze, you lose' if you see a good opportunity for a domain where you are quite confident you can make money, you take it before someone else does, you sleep too long (72 hours or more as Rick suggests) someone else is going to get there before you.

I remember Rick saying he saw SmartGlasses for sale with a BIN around $3,000 and said he just bought it outright, never tried to make an offer, just bought it, so Rick himself never took "72 hours to sleep on it" or "THINK THINK THINK, Then DO!" on that one.

 

[frank-germany]

I remember when Rick wanted to prove some years ago on DomainSherpa that he still could hand register good domains. Then he registered many of them.
I watches those names he registered. He dropped them all within following years.

He owns great, unique names because he registered them long time ago, with those names probably any negotiation style would work.
People admires him for great sales, but how many of those domains were bought in recent years with current market conditions and modern necessary buying skills.
This admiration is simply for the past, which gone long time ago.

spend 150.000 USD on a name
and sell it for a few million later on

you can do so today

thats what rick did

 

[BigTree]

When Rick was buying them very few were interested in the domains.
Today competition is a thousand times bigger and prices higher.

 

[frank-germany]

When Rick was buying them very few were interested in the domains.
Today competition is a thousand times bigger and prices higher.

you will find a decent domain for 150 K
I'm sure

 

[Ostrados]

spend 150.000 USD on a name
and sell it for a few million later on

you can do so today

thats what rick did

The problem with this approach is putting all eggs in one basket.
What if the basket never sells?

 

[gilescoley]

but usually, they would send you "what about $50?"

Sometimes, yes they do, I then let them know my expectations and see what they say.

I find the trick is to not act deperate for the sale, I try to make the buyer feel special

....there are plenty of other buyers I will be approaching soon, but Im giving you first option

 

[Domaining Ocean]

I give Rick credit for seeing the value in domains, and getting in when he did.

Rick Schwartz is in a strong position because he has top quality domains, and also doesn't need the money. Most people are not in the same position.

When you are in the position of power you are going to make better sales. Negotiation tactics only matter so much when you have marginal domains or a pressing need for money.

Brad

I'm 100% agree with this point. All negotiation techniques depend on the side which has more holding capacity.

 

[lambo.com]

If you have bespoke acquisition targets and domains, a Schwarz-esque asset mentality is the Fort Knox of negotiating positions

 

[frank-germany]

The problem with this approach is putting all eggs in one basket.
What if the basket never sells?

same problem Rick solved

Kudos

 

[Ostrados]

same problem Rick solved

Kudos

But he didnt do that, he had many domains he didnt just flip one domain at a time.

 

[DrJacoby]

The problem with this approach is putting all eggs in one basket.
What if the basket never sells?

Then you sell the eggs.

 

[Ostrados]

Then you sell the eggs.

No eggs in this case, just is one big egg

 

[nononsense123]

He suggests a "non-pursuing" approach in domaining. To have that approach and that vibe, you should have conviction in your domains, and should be WELL within your budget to keep renewing them without giving you financial worry. If you come from such a position of strength, then you can emulate that strategy on whatever plane you are.i.e it's not necessary to sell in millions. but you can use this strategy to sell a $1k domain for $5k imo.

 

[Kai W.]

I think I have it exactly the opposite way.
Whether I'm a buyer / a seller, I always communicate positively because I believe that only communication is the only way to understand the true needs and psychological price point of the seller / buyer, as well as to discern whether the seller has a need for funds at this stage/who the buyer is (end user/retailer/interrupter). Of course, most sellers don't seem to want to have any communication with me when I'm the buyer.

 

[frank-germany]

The problem with this approach is putting all eggs in one basket.
What if the basket never sells?

that is only true, when all you have is $150k


but I was referring to what Rick did with p/orno/com
in the late 90's

 

[CraigD]

No eggs in this case, just is one big egg

Quite possibly a rotten egg

 

[S8Power]

Watch this six year old DomainSherpa interview where Rick explains his 390 new hand registrations. Awkward and embarrassing are two words that come to mind.

This list must be a joke. Even the rubbish names I have dropped after my first year of domaining weren’t that bad

I like this quote a lot
“Great domains put you in the middle of a busy intersection. Worthless domains put you in the middle of a nasty swamp.”