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.

 

[Joakim]

I believe he is generally speaking about premium domains and inbound inquiries.

There's a difference between that and dealing with outbound in the xxx-xxx range.

For maximum price on ultra-premium domains, Rick's tactics should be spot on I guess. For all the rest of us. Well, to each of their own. There's no blueprint.

 

[lock]

The negotiation is the important part. I see some offer 50% off after 24 hours so often worth a wait for even more.

 

[gilescoley]

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.

 

[anf]

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.

How do you do this? for example, you have an inbound email like "hi, i want to buy DomainName.com. How much?". What would be your reply, if this is not a secret?

 

[DN_Hunter]

Interesting read. I find myself following about half of the bullet points he mentioned. I think I might try more of his tactics in my next few negotiations... All of my leads are inbound -- I stopped doing outbound a couple of years ago. I don't set an exact price, but I often provide a vague range such as low-to-mid $xx,xxx (implying $10K - $25K). Or mid-to-high $xx,xxx (implying $50K - $100K).

For my next negotiation on a Premium name, I'm going to bypass my reply with a price range, and instead will ask more questions -- just to see the feedback from the buyer. Maybe he's on to something as it might reveal the buyer's real desire and intentions to buy the domain name?

Thanks for posting!

 

[bmugford]

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

 

[DrJacoby]

Hi, recently Rick Schwartz wrote a post about negotiation tactics:

You think 10 years ago is recently? Wow.

 

[Kingslayer]

I like this advice, but Rick gives some absolutely terrible advice, contradicts so himself often and because of that I take a lot of what he says with a pinch of salt, but the other day was having a scroll through his Twitter and saw this tweet about how he's never spent any of his own money on domains, how he got a credit card and when the bill came in for this credit card, the domains paid for themselves.

When someone asked him “If you were to do it now how would you do it?”, his reply was:-

"I would start with the same credit card and BUY TIME!"

Early/mid 90’s Rick could earn all his money back with parking and this is what happened and how he paid his debts on his credit card, this couldn’t happen 2020.

I respect what Rick's achieved in domaining, but this shows me if Rick was to start out domain investing from scratch 2020, he wouldn't do well.

People listen to Rick and listen to advice he gives, so him giving advice basically saying "get a credit card, by loads of domains you can’t afford and go into debt" he should be ashamed and if he isn’t, he’s completely out of touch with reality.

 

[DrJacoby]

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.

 

[karmaco]

Rick’s success speaks for itself. I think he gives sound advice. He had to get a credit card because domains cost alot more to register then. He never said go into debt.

 

[Kingslayer]

Rick’s success speaks for itself. I think he gives sound advice. He had to get a credit card because domains cost alot more to register then. He never said go into debt.

He said he would do the same thing now!

People just starting out will read that and think they can achieve what Rick as by doing that, but what they need to understand is Rick did that during a different era and a time where domain investing was a untapped market, a time where you can earn loads just by the domain sat there doing nothing and this is how Rick paid his credit card off early when the bill came in.

Rick thinking he can do the same thing 2020 means he's completely out of touch modern domaining and Rick aka a person who’s made millions in domains (largely from investments in the 90s) saying this is encouraging people to do the same thing, he is encouraging people to take debt on and with that is giving bad advice.

I don't have the same credentials as Rick, so I'm sure people won't listen to me as much but my advice (if interested) is learn about domain investing first and foremost, look what sells and only invest with spare cash that you have, never set debt on investing in domain names.

 

[JimmySun]

Don’t take it too serious, too much poisoning soup, different time comes out different results, every decisions and strategies may change in different timing, most importantly since he sold a first good quality domain everything will gone smoother that so you have records convince your next customer, and everything comes out from his mouth will sounds all right, especially the reason he got a chance to acquire some quality domains at the very earlier time but I must admit it he knew and saw an opportunity when other domainers underestimate their domains in hands back in 90s, that’s the only thing he’d done right at big pictures of visions. Also definitely he pondered some negotiation skills and buyer’s standing points of view.

 

[RJ]

Rick Schwartz is the G.O.A.T. Look at his results for proof it works. Like deep-sea fishing, this strategy only goes after the biggest of fish -- the determined buyer with the biggest of pockets. The little fish with their little offers are scared away or ignored.

It means each big sale has to make up for the many little sales that are passed up along the way. You have to have a good portfolio and confidence in the value of your names in the eyes of other people. I meditate on this Rick Schwartz quote, “When you see John Jones through John Jones eyes, you will sell John Jones what John Jones buys.”

 

[Josytal]

My takeaways from Rick's article:

1. Negotiate from position of strength and knowledge.
2. Ask questions, answer question with more questions.
3. Do not set rigid price for your domains. Negotiate price, based on who is asking.
4. Do not be desperate to sell.

 

[jideofor]

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.

how do you do that?

 

[7363824]

Im not one for games. Putting myself in the buyers shoes, I'd have to want the name very bad to put up with that. But then I think that's the point. He doesn't want to deal with a buyer who isn't seriously motivated to make a deal.

 

[gilescoley]

How do you do this? for example, you have an inbound email like "hi, i want to buy DomainName.com. How much?". What would be your reply, if this is not a secret?

how do you do that?

I said if I approach end-users. (outbound) I wont mention the price in the first email. I prefer to gauge the interest first.
If I get a reply that shows they are interested, I will do more research on the person/company. I will check again what position the person holds in the company (it could be weeks/months later and I have forgotten who the person is). I only email the decision makers in the company. What other names they own, what they paid for those domains if that info is public. I try not to leave any money on the table. I try get them to make an offer first (yes even with outbound) If they arent interested in making an offer, then I will go back with a price.

If I get an inbound inquiry. I try and find out what plans they have for the name. I act like its one of my children and that I am not desperate to sell the name if the price is not right. If I get regular offers on the name, I will mention that there has been interest in the name. I will ask them to make an offer.

 

[frank-germany]

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

if you are not in the position of power
you want to train yourself
to pretend that you are

 

[frank-germany]

I like this advice, but Rick gives some absolutely terrible advice, contradicts so himself often and because of that I take a lot of what he says with a pinch of salt, but the other day was having a scroll through his Twitter and saw this tweet about how he's never spent any of his own money on domains, how he got a credit card and when the bill came in for this credit card, the domains paid for themselves.

When someone asked him “If you were to do it now how would you do it?”, his reply was:-

"I would start with the same credit card and BUY TIME!"

Early/mid 90’s Rick could earn all his money back with parking and this is what happened and how he paid his debts on his credit card, this couldn’t happen 2020.

I respect what Rick's achieved in domaining, but this shows me if Rick was to start out domain investing from scratch 2020, he wouldn't do well.

People listen to Rick and listen to advice he gives, so him giving advice basically saying "get a credit card, by loads of domains you can’t afford and go into debt" he should be ashamed and if he isn’t, he’s completely out of touch with reality.

I see it that way:

he basically tells us all the time to act from a position of strength
thats good advice

he has sold only ( I think ) 6 or 7 domains in his life

does that apply to your business?

so why complain about advice somebody gives you
who is in a completely different business?