Domain Negotiation tips ( for selling domains )

[james2002]

I wonder you can share any negotiation tips that work for you in selling domain names.

For me, I didn't have much success in replying with high asking prices.

So we have to put realistic asking prices and otherwise there will be no more negotiation.

 

[JoshuaPz]

James,

I have notched 150 end-user sales (all low $xxx - mid $x,xxx) over the past 8 months and am beginning to dump transcripts of these successful negotiations to following URL:

I've uploaded 5 so far and plan on publishing 2-3 new transcripts per week. Feel free to use the templates therein to facilitate your own negotiations.

I have also copied my end-user pricing "cheat sheet" from the other forum to the following URL. You may reference it, but please do not republish:


Enjoy, and feel free to post here / PM me if you have any specific end-user negotiation questions!

Josh from the "other forum"

 

[Viator]

Thank you, I liked especially the "cheat sheet" suggestions.

 

[copper]

Joshua,
Good to see you here

 

[Theo]

First answer this question: What would you rather have, a few large sales or many small sales?

There are many reasons why you should ask for a higher price for your domains - provided that they are worthy, of course.

If you don't ask, you won't get. If you aim low, you will jump as high as your bar. Simple as that.

Do some research on the person who makes the offer but base your pricing on what *you* consider fair: your cost, your valuation model, your "fondness" factor towards the domain.

Most important: learn to turn down offers that are good, but not good enough.

 

[james2002]

Thanks, Acro. You put it nicely. If we don't ask, we don't get it. There is also a bit of learning curve in negotiation as well.

Many people judge a domain price by pagerank, Alexa rank etc.. and not by keywords. It is a bit of funny. Is it worth educating them about this? Have you made any sale via educating such people who judge a domain price so low due to no pagerank, no alexa rank etc....

 

[silverclick]

anyone have tips/templates when approaching websites to buy?

I've had limited success in approaching owners of sites, most dont even reply to my initial query ...

 

[JoshuaPz]

By the way -- James, I took a look at your site and I would personally suggest marking down the prices of your domains by $5-$50 each as a simple "feel-good" measure for end-user prospects who approach you. Price Classy / Ringtones / com at $495, not $500; Web / Hosting / Sites / com at $4950, not $5000; etc. I have found this simple technique to be extremely powerful and effective in locking up sales, and real-world marketing gurus use this method all the time.

 

[james2002]

Thank you, Joshua.

 

[DNP]

These basic negotiating points may be useful as well.

Six Basic Negotiating Tips

The First Tip Never discuss settlement terms until the end of the process, when both parties are committed to trying to resolve the situation. Before discussing the meaty terms of a settlement get to know each other, find out what you can about possible competitors, learn as much as possible about the issue at hand, determine if this is really what you need or want, wait until they indicate that they really want or need to settle.

The Second Tip The purpose of negotiating is to discover the term parameters of the other person. You want to know the most the other person will pay for something or the least they are willing to sell for so you can couch your initial offer or response to strategically position your offer or proposal.

The Third Tip Try to get the other person to make the first offer or proposal. Knowing how to bracket your response will let you move the final outcome toward your goal. But the starting point is a critical step in getting there. Manipulating the other person into making the opening proposal allows you to set the parameters of the negotiation to your advantage.

The Fourth Tip Prepare before meeting by considering why you are negotiating, what you expect to gain, why that is important to you, and what you expect to have to offer. If you fully understand your needs and wants you will be able to quickly determine if continuing a negotiation is worth your time.

The Fifth Tip Test the market before sitting down. Get comparables, talk with others, and establish reasonable parameters for the negotiation . The key to a successful negotiation is keeping your proposals and counters within a range of reasonableness. Do not undermine your credibility by appearing ill-informed or overly aggressive.

The Sixth Tip Be aware when it is time to bring the negotiation to a close. Don’t let the discussion drag on as the other person may lose interest, patience or the desire to commit. Over negotiating often kills deals or agreements that should have been made.

 

[james2002]

Thanks, DNP.

Great post.

 

[Gerry]

Getting ready to approach end users...

not to buy domains.

But to sponsor the site.

 

[jmh04]

Hi Joshua,

This is great info. Thank you very much, and congrats on the great sales. I plan to use some of these approaches soon to hopefully make some successful sales like yourself.

I do have a quick question ...

In one of the samples, you had a domain that was one character off from the end-user's established site. I have a couple domains that may be that same way ... or it is similar to their site, but spelled differently. In these cases, I registered the names prioir to their business and they happened to open a business with a similar name afterward. Now I would like to approach them with my names and see if they are interested.

Joshua (or anyone reading these posts), can you please give me advice on what I can say (or make sure not to say) to ensure that they don't think I am a "squatting" their sites. I am not, and hopefully they know that since my names was already registered before they started ... however, I don't want to discount any sensitivity around the issue.

Any advice is greatly appreciated.

Thank You!

 

[Jessica320]

Nice question.