Who's in charge, anyways?

[HotKey]

Part of every deal is coming to an agreement on a price. But is there a general understanding of who's in charge when it comes to making the deal? Is it the buyer? The seller? Or, does it depend on the circumstance..would like to see comments or votes on who you think holds the upper hand when it comes to selling/acquiring domain names.

Have you ever been in a situation where you came out guns a-blazing, only to realize you weren't impressing no one, and all's you got was a big yawn in response? Have you ever turned the tables on someone, where they've caved and come to see it your way?

Although I think each circumstance can vary, eg. whom contacts whom, what kind of venue is being used and particular demand for the keywords/TLD, ultimately it is the merchant that's in charge. After all, even though money talks, it is their asset you are after as a buyer.

But.. in the world of domains, unless you bent on the holy grail one-worder .com, there are always, always alternatives, be it long-tails by adding a word or two to your keyword, or going with ccTLD or even a new extension. So with this in mind, perhaps it is the person with the billfold that has the upper hand.

Of course, it's rarely so black and white. There are gray areas, where one has to adapt to the circumstance. A deal can quickly run askew if you are focused on power, and not on compromise. A merchant stoically holding his merchandise at a set value without willing to understand his buyer or the true value of real dollars, might never get that chance back again to a decent sell. At the same time, a buyer undermining the asset he is after loses the opportunity to ever own it.

So who's calling the shots, in your opinion?

 

[NickB]

So all the newbie domainers selling junk are in charge?

Hmm, news to me

Consider me a client asking newbie

How much for NameMispell.xyz ?

Newbie 5k

Client 100 bucks

Newbie: no way

Client ok, I get NameMispell.biz

I like how the newbie domainer was in charge

You have a semblance of being in charge if you have more than one bidder on a name and even there you are only in charge if the bidder lets you. I often see bidders back out of deals so ultimately who can argue as to who was in charge?

I don't see how you can call it any other way. We need the client, we can pretend we are in charge but in the end the client decides. We can say we won't sell but renewal time is always right around the corner. Or we can just sit on our throne and harp about how we have the best domain names in the world and the client should bow at the throne for the opportunity to buy it. Fact is it is our opportunity to sell it and not the other way around.

From a sales perspective and as a seller you should always be in control of the next step, you need to direct a potential buyer down a path (price) that you want them to go down

I was talking about the process not the quality of name and If you are desperate for cash you will sell out.

So all the newbie domainers selling junk are in charge?

Hmm, news to me

Consider me a client asking newbie

How much for NameMispell.xyz ?

Newbie 5k

Client 100 bucks

Newbie: no way

Client ok, I get NameMispell.biz

I like how the newbie domainer was in charge

You have a semblance of being in charge if you have more than one bidder on a name and even there you are only in charge if the bidder lets you. I often see bidders back out of deals so ultimately who can argue as to who was in charge?

I don't see how you can call it any other way. We need the client, we can pretend we are in charge but in the end the client decides. We can say we won't sell but renewal time is always right around the corner. Or we can just sit on our throne and harp about how we have the best domain names in the world and the client should bow at the throne for the opportunity to buy it. Fact is it is our opportunity to sell it and not the other way around.

Any sale is a process, if you do not control that process this puts you at a disadvantage.

I was not talking about renewals, thrones, portfolios or any other analogy it was about the process....

 

[trelgor]

Fortune favors the bold. Nothing wrong with holding out for more if you believe there will be a better opportunity. You will miss sales, but you will also get better prices. In short: soso name, small niche, small buyer pool, sell. Good name, hot or growing niche, big buyer pool, hold out. In a longer term strategy some buyers who made deflected offers for these types of names will eventually start to fall of the conveyor belt with serious offers.

Buyers can always be more than one. Sellers only one. That is why I feel that sellers have the upper hand. That and the fact that all (ALL) domain names are unique.

And also, if you believe you have the upper hand, you are in a better negotiation spot mentally, which is a key factor.

The glass is half full, most of the time anyway.

 

[Smiles76]

The buyer is in control. They may desire your name but certainly don't "need" your asset. This should obvious to many domainers who haven't sold a domain after 10 years. Beer.com is an ultra premium name and yet the company still went bankrupt and now is a landing page. If a business "needs" a certain name in order to succeed, that business is doomed to fail.

 

[Brands.International]

Well:

• If you have a high quality domain name which gets lot of offers - you (seller) are in charge
• If you have garbage with no offers, then buyer is in charge (you pray for some buyer to appear!)
• If you do not need to sell, then you (seller) are in charge
• If you need money desperately then buyer is in chage.

Best combination for seller: you have high quality domain names and lot of money

 

[Name Trader]

I voted for "It varies". As can be seen in this thread. But ultimately, if you have to choose one or the other, (you could be misguided), the seller is basically in control because nothing will happen until they say "Yes". (Yes could be an offer which the buyer accepts). On the other hand. The buyer is in control also when they mutter to themselves (or tell the seller), FO, I go find/buy another domain. After all it's a sell/buy negotiation. You (the seller) might think you are in control by turning down offers. Well you are in control. But that control won't lead to many sales. It's a negotiation. You can be in control of negotiations and not reach a sale also

 

[eurorealtor]

In many cases it's the marketplace or broker, who runs the show. Otherwise it's the seller who shall manage the smooth process as the domain professional, with compromise if requested from the buyer, IMO.

 

[robert widener]

good read

 

[HotKey]

But that control won't lead to many sales. It's a negotiation. You can be in control of negotiations and not reach a sale also

And as I have experienced, this week. A sale in limbo, due to buyer holding off for lack of control on their end of negotiations.

**

So this thread has produced some absolutely intriguing responses, and I thank every single person for their quality insights. I really do appreciate it. This is stuff that is excellent to reference back to, and your contributions enable investors to continually hone skills and better themselves even, myself included.

A lot of who is really in charge of a deal has largely to do with the trust factor as well. If you are a novice and unsure how to navigate through the process to the close, you are placing a big trust on the person who is bringing you there. I have had to hold the hand of many a buyer who aren't familiar with value, escrows, domain usage or registrars. A large part of getting these deals to close was developing a trust, and them allowing me to take the reins.

Inherently I think we all want to be in charge, and as we should be of our own affairs. But situations call for recognition of certain aspects, eg.. "it's your domain, name the price" or "I really want to sell this name, what's your best offer?" which automatically places someone in the drivers seat.

**

But who is "the buyer" ? What if there are 10 or 50 buyers ?

This was a great point. If there are multiple buyers soliciting directly to you because you have a hot name, this naturally puts seller in charge. Demand for a limited resource. Even in an auction-style sale, if it is a quality name, the seller is still driving, even though it seems as if it's the bidders in charge.

I really did enjoy some of the "old school" posts where a few of you strongly believe it is the buyers in charge of a deal. We are slowly losing this mentality, and mustn't. It brings to mind good old fashioned customer-oriented state of mind, where the customer is always right. This is an excellent outlook, although I think we have come to the realization in recent years that the customer is not always right. I do agree that without a buyer there can be no sale, but I do think that there is no such thing as there will never be a buyer. Especially with a quality name, there will always be someone. There is just too many people in the world now for someone not to come a knockin' or to bite the hook you cast.

Me thinks that with any relationship (a domain sales is a relationship between the buyer and the seller)

The person who has the most control is the person who cares the least.

The first part of your post was wonderful, but it was the second that worried me. Because the person who cares the least is also the most dangerous. A lot can be extrapolated from this, negotiation strategy in particular.

The person selling should be in charge, you need to control the sales process.

This does mean every sale will be completed - but without control there is no structure without structure there is no road map, no road map no destination and without a destination in mind you are just talking......

This is fantastic advice- don't go into a deal blind, especially as the seller. And as for a road map, something to keep in the glove compartment:

for inbound inquires, the seller calls the shots
because they already know the buyer is interested, which gives seller leverage in negotiations

for the outbound spammers, the buyer runs the show
because it's obvious seller wants to sell.

imo...

If you have garbage domains you are not going to have many opportunities to sell them anyway.
If you have domains with a limited pool of potential buyers clearly a buyer has more control than a term with many potential buyers.

It also depends who initiates contact. I basically just respond to inquiries.

**

Votes as far are split evenly between "seller being in charge" & "every situation varies" with "compromise" and "buyer being in charge" not far behind. This is really representative of the diversity in handling negotiations, as well as on NP; there is never just one way or the highway.

 

[HotKey]

Best combination for seller: you have high quality domain names and lot of money

Basically, in charge of the whole damn thing, really.

 

[NickB]

And as I have experienced, this week. A sale in limbo, due to buyer holding off for lack of control on their end of negotiations.

**

So this thread has produced some absolutely intriguing responses, and I thank every single person for their quality insights. I really do appreciate it. This is stuff that is excellent to reference back to, and your contributions enable investors to continually hone skills and better themselves even, myself included.

A lot of who is really in charge of a deal has largely to do with the trust factor as well. If you are a novice and unsure how to navigate through the process to the close, you are placing a big trust on the person who is bringing you there. I have had to hold the hand of many a buyer who aren't familiar with value, escrows, domain usage or registrars. A large part of getting these deals to close was developing a trust, and them allowing me to take the reins.

Inherently I think we all want to be in charge, and as we should be of our own affairs. But situations call for recognition of certain aspects, eg.. "it's your domain, name the price" or "I really want to sell this name, what's your best offer?" which automatically places someone in the drivers seat.

**


This was a great point. If there are multiple buyers soliciting directly to you because you have a hot name, this naturally puts seller in charge. Demand for a limited resource. Even in an auction-style sale, if it is a quality name, the seller is still driving, even though it seems as if it's the bidders in charge.

I really did enjoy some of the "old school" posts where a few of you strongly believe it is the buyers in charge of a deal. We are slowly losing this mentality, and mustn't. It brings to mind good old fashioned customer-oriented state of mind, where the customer is always right. This is an excellent outlook, although I think we have come to the realization in recent years that the customer is not always right. I do agree that without a buyer there can be no sale, but I do think that there is no such thing as there will never be a buyer. Especially with a quality name, there will always be someone. There is just too many people in the world now for someone not to come a knockin' or to bite the hook you cast.


The first part of your post was wonderful, but it was the second that worried me. Because the person who cares the least is also the most dangerous. A lot can be extrapolated from this, negotiation strategy in particular.


This is fantastic advice- don't go into a deal blind, especially as the seller. And as for a road map, something to keep in the glove compartment:



**

Votes as far are split evenly between "seller being in charge" & "every situation varies" with "compromise" and "buyer being in charge" not far behind. This is really representative of the diversity in handling negotiations, as well as on NP; there is never just one way or the highway.

Love the glove compartment comment!

 

[topdom]

You have a great domain which would save thousands every year for many potential buyers. But none of will buy it. Just not buy. But you have to renew because the domain is great. But they will continue not buying. One day they will decide to buy, but because of desparation and exhaustion you will counter 200 and say price is negotiable. And they will call you a loser.

 

[HotKey]

One day they will decide to buy, but because of desparation and exhaustion you will counter 200 and say price is negotiable. And they will call you a loser.

Someone, or both you, lost control of the situation. Now you know, next time keep your composure. Some people will lash out no matter what, so always be prepared for that, while trying to never let it reach that level.

Sounds like they got upset because you countered on an offer?

 

[karimovic]

Money and knowledge in charge everything in a domain sale.


Sellers have big money in their pockets are not rush to sell. They are likely focus on selling for high price only. You may found that some domains sold for 10K+ USD are not what we considered supreme domains. They sold for a high price just because the buyer want them and they also have big money in their pockets.

I do not think sellers have a lot of money or they do not sell

 

[Adrigan]

As the results in your graph clearly show, there is no-one really in charge and no-one has a strong advantage for any one particular scenario in a domain sale deal.

I can come up with 9 possible moving parts for a domain sale. Maybe there are more?

1. The seller
2. The buyer
3. The broker
4. The marketplace (if different to the broker)
5. Perceived value (by bother seller & buyer)
6. The price (+ payment terms)
7. The economy
8. Timing
9. Fashions / current events

Some of these are present in many buying-selling scenarios. The key difference with domains is that anyone in the world can come along and buy a domain, if it is available and apparent that it is for sale, or can be.
Unlike sectors like real estate, vehicles, other large equipment, businesses, all of which will appeal to a far more limited and often local market than domains, domains have no restrictions at all, unless a name is forbidden in any particular country, countries which we all probably familiar with.

In addition, some of these elements can be dependent on others - price may be reflective of fashions or some current event and/or the economy. Timing is probably related or close to the economy & fashion/current events.

Finally, there will always be the matter of the seller wanting the most for their domain and the buyer seeking to pay the least amount of money, a situation that has existed since the first thing was traded by humans (I'll trade you my cow for your 6 chickens, etc). The problem with value is that there is no real way to gauge it and so called domain name experts are just liars and arrogant pretenders, who don't care about the true value of a domain name and only seek to sell it quickly.
The believed value is what a buyer is willing to pay. But buyer A is not the same as buyer B, or C, etc., so value is particular to each person.

The fewer moving parts in any given scenario, for almost any human undertaking , the better. But when the number of moving parts shrinks to upto 3, in can become the opposite, as in the case of the government or monopolies, or both. Countries which have 2 main political parties are a good example of this and such countries are always failing the population, without exception.