Share your negotiation tactics -- What's worked, what hasn't

[fonzie_007]

I thought this would be a good time for people to share their negotiation stories, what has worked, what hasn't.

I have had a couple of negotiations that have not gone as well as I would have liked. If we pool our information we all can be more successful and sell for higher prices in the future.

You may want to include:

• if the person you sold the domain to was an end user or reseller.
• if the buyer contacted you first or you contacted the buyer
• if the sale was completed through a service like Sedo, Great Domains, ebay, or Afternic
• what you would do in the future differently if you could re-do the transaction
• what domain you sold
• the domain's listing/asking/starting price
• the domain's final selling price

 

[fonzie_007]

Would love to hear your stories...

 

[JMJ]

Allowing the buyer to max out their own budget always seem to work better for me. More often than not if I would have set the price it would have been less than the final closing price. This doesn't really work on sites such as sedo or afternic but works great via emails and end-users.

I will usually let them know I'm open to accepting "A" offer. But not giving them any idea of what that dollar figure is. They will generally let you know when they have reached their limit. Once this happens increase it a few hundred even a few thousand more (depending on what field you're playing in) and let them know how to make payment without even asking them if it's a deal, assume it is one.

 

[fonzie_007]

Allowing the buyer to max out their own budget always seem to work better for me. More often than not if I would have set the price it would have been less than the final closing price. This doesn't really work on sites such as sedo or afternic but works great via emails and end-users.

I will usually let them know I'm open to accepting "A" offer. But not giving them any idea of what that dollar figure is. They will generally let you know when they have reached their limit. Once this happens increase it a few hundred even a few thousand more (depending on what field you're playing in) and let them know how to make payment without even asking them if it's a deal, assume it is one.

Have you found most buyers contact you through a site like Sedo or Afternic? Or, do you find buyers have usually contacted you through your whois info?

 

[scrsteven]

Always have the buyer make an offer first or you could lose out on thousands. ALWAYS.

 

[fonzie_007]

Always have the buyer make an offer first or you could lose out on thousands. ALWAYS.

Do you always wait for the buyers to contact you? Or, do you also email potential buyers and ask them to contact you if they are interested in your domains?

 

[primacomputer]

I agree in general with the comments about waiting for an offer. If you have a good name you will receive offers for it. There is no need to go running around showing people you're desperate for a sale. I only sell to end users, so there's little point in me promoting the names for sale at Sedo, ebay, etc.

 

[fonzie_007]

I agree in general with the comments about waiting for an offer. If you have a good name you will receive offers for it. There is no need to go running around showing people you're desperate for a sale. I only sell to end users, so there's little point in me promoting the names for sale at Sedo, ebay, etc.

How many domains do you have and sales do you get in a year? I found three people bitting hard on one of my domains, but none willing to pay top dollar for it. I have held out, but I am still been holding onto the domain for almost a year and a half now. All of the interested parties have contacted me first through my whois info (which makes me think they were resellers and not end users).

 

[SimpleDomaining]

I agree in general with the comments about waiting for an offer. If you have a good name you will receive offers for it. There is no need to go running around showing people you're desperate for a sale. I only sell to end users, so there's little point in me promoting the names for sale at Sedo, ebay, etc.

if person contacting you for price, how do you know if he is the end user?

 

[fonzie_007]

You normally have a good idea based on how sophisticated they are and what price they are offering. Resellers are sneakier IMO and will not be willing to pay top end prices (otherwise they will not make a profit). It also helps knowing what the person is going to use the domain for and their contact info (you can google them).

For instance, I two guys who contacted me regarding bestwineclub.com. The first was obviously a reseller. He knew exactly what the domain was worth and how much he wanted to pay. In fact, he specifically told me he was a reseller.

The second guy was an end user. He had a small wine shop/winery and wanted the domain name. He didn't have a lot of spend, but he was a legit end user. While I didn't sell him the domain name, if I had the choice between the two and they were offering the same price, I would rather sell to an end user who would put the domain to use.

In both of these situations it didn't take a rocket scientist to know if they were an end user or a reseller. I have heard of other times where someone is an end user and tries to assume a reseller role (ie to buy the domain at a lower price). Othertimes, I have heard of resellers assuming a end-user role (ie to have the domain holder sell the domain that he otherwise would not if he knew it wthe buyer was a reseller.)

I would be interested in knowing how other people determine end users from resellers.

 

[sjaguar13]

I find it easier to sell a domain that I recently registered than a domain I held onto for a while. After I registered 200+ domains. I had offers on several of them just because they wanted to register them, but I beat them to it. For those domains, I gave them the whole "I had plans for it, but I would be willing to sell it. Make an offer". Every time, their offer was good enough for me (mid $xxx for each one). Seeing how I just registered them for $6 each and they were generic, but not generic enough for type-in traffic. I had no traffic stats. There were no OVT (with or without TLD), no links, PR, or indexed pages. I am pretty sure everyone was an end user.

A domain I sold recently was registered at the same time, but it has been 11 months. The domain will expire in January. I also got an offer for mid $xxx. It has about 2 uniques a month and nothing else. After I pushed the domain to him, it took him a week to get it. He also needed help setting up his GoDaddy account for the push and needed to know how to accept the transer. I am also fairly sure he was an end user. The domain was listed at Sedo, but he contacted me through the whois info. He wanted to know if it would be better to go back to Sedo and make the offer....I said no.

I think it's best to hold on to the domain and wait for someone who really wants it, but only if you have time. I was surprised at the offer for a domain that would expire soon. Of the domains I remember, it looks like they haven't done anything with them. The domains I sold a while ago are still parked with the exception of one, it has a "This Site Coming Soon" page (a white background with black text saying the site is coming soon and nothing else).

 

[fonzie_007]

. The domain was listed at Sedo, but he contacted me through the whois info. He wanted to know if it would be better to go back to Sedo and make the offer....I said no.

LOL. Nice job saving the 10% commission Sedo would have heisted from you.

 

[dochlaggie]

"Always have the buyer make an offer first or you could lose out on thousands. ALWAYS."

How do you get the "buyer"to make the first offer. Every enquiry I have had has asked for my price and/or offered $100- or something similar.

What is the best way to deal with these type of emails ?

Thanks

 

[primacomputer]

How many domains do you have and sales do you get in a year?

It's hard to say on average because the market changes and my strategies change in anticipation/reaction to the market. Sales this year has been lower than the last few, but mainly because I've been insisting on higher prices. If I had to make guesstimate I'd say I average about 5-10 sales a year with an average $10k value while managing 500-1,000 names.

I found three people bitting hard on one of my domains, but none willing to pay top dollar for it. I have held out, but I am still been holding onto the domain for almost a year and a half now. All of the interested parties have contacted me first through my whois info (which makes me think they were resellers and not end users).

The maximum potential value of a sale depends on the buyer. The keys to making high value sales is to be prepared to sit on a name until the right buyer comes along, and to know when he does. The first part is just a matter of finance and patience The second is just a matter of research. With both you can make good money, even on many names people consider mediocre.

For instance, I two guys who contacted me regarding bestwineclub.com. The first was obviously a reseller. He knew exactly what the domain was worth and how much he wanted to pay. In fact, he specifically told me he was a reseller.

Very interesting. I think I have seen one of these guys making an offer on one of my wine names.

How do you get the "buyer"to make the first offer. Every enquiry I have had has asked for my price and/or offered $100- or something similar.

What is the best way to deal with these type of emails ?

It's best to deal with these is the same way you should deal with any enquiry. Research the buyer and once you know who he is, how he works for, what the name is going to be used for, what the budget it, and what colour socks he's wearing, you respond accordingly. You need to do this research. Don't expect the buyer to offer up all that data voluntarily without you even asking for it.

 

[fonzie_007]

It's hard to say on average because the market changes and my strategies change in anticipation/reaction to the market. Sales this year has been lower than the last few, but mainly because I've been insisting on higher prices. If I had to make guesstimate I'd say I average about 5-10 sales a year with an average $10k value while managing 500-1,000 names.

The maximum potential value of a sale depends on the buyer. The keys to making high value sales is to be prepared to sit on a name until the right buyer comes along, and to know when he does. The first part is just a matter of finance and patience The second is just a matter of research. With both you can make good money, even on many names people consider mediocre.

Very interesting. I think I have seen one of these guys making an offer on one of my wine names.

It's best to deal with these is the same way you should deal with any enquiry. Research the buyer and once you know who he is, how he works for, what the name is going to be used for, what the budget it, and what colour socks he's wearing, you respond accordingly. You need to do this research. Don't expect the buyer to offer up all that data voluntarily without you even asking for it.

I would be happy to share my perspective buyer info with you if you would like to do the same with me. We may be even able to get a sale out of it if they are different people.