Domain Negotiation Tips

[Tom K.]

I don't know if there is a thread for this topic so I am starting one. There is much talk about finding end users. But how do you handle the situation where the end user contacts you so as to get top dollar without turning off the potential buyer at the same time?

There are many scenarios within this type of situation. For example, many domainers use average monthly type-in's, CPC/PPC rates, extension, length, local and global search volume, prior sales of similar name, etc., as indicators.

To start things off, suppose you own a short brandable dot com name that is also an acronym (not very popular mind you but definitely brand worthy) that gets about a dozen visitors per day. Who knows exactly why they came. PPC is ZERO to the parked page. Now, a little known company registers every other extension. Then someone contacts you (does not indicate in any way to be connected with that company) and tries to sell you a sob story as to why you should sell the domain at their low-ball offer. How do you handle this scenario. (As you can see, I had a lot of time on my hands today.)

 

[Poker]

gets about a dozen visitors per day

• Archive.org
• Google looking for most likely suspects

a little known company registers every other extension

• Google every piece of info listed on their whois
• Determine their specific business
• Try to find their active site(s).

Then someone contacts you (does not indicate in any way to be connected with that company)

Find out if they are (google) using whatever info you have or if they are not, what are they up to.

tries to sell you a sob story

You are here to sell domains, not buy sob stories.

 

[Tom K.]

• Archive.org
• Google looking for most likely suspects

• Google every piece of info listed on their whois
• Determine their specific business
• Try to find their active site(s).

Find out if they are (google) using whatever info you have or if they are not, what are they up to.


You are here to sell domains, not buy sob stories.

Very true. I will try to address each point:

Suppose they register an email address explicitly to back up their story. No trail. No whois based on the email (using a standard free service or an email at their ISP). First name only. You know or suspect they are using the sob story to manipulate you and you have good reason to believe it is the same company that registered the other extensions. Do you call them out? If they rejected your previous counter offers (for which you are glad they did), how much leeway do you have to up your price? Do you ignore the psychology and simply set your price or work them up as high as you can? If so, how do you recommend going about it?

This is a real life scenario. The offer began on Sedo (via Godaddy) which was rejected. The interested party contacted via parked paged later using whois info.

My belief is that a lot of companies think that if a domain is registered and for sale, it is from someone looking for a quick buck. They don't consider this entity as a legitimate business. Especially if they come across this domain via traditional or mainstream registrars. However, how do you establish and arrive at the best possible price?

 

[BiggieBiggie is verified member.]

Do you ignore the psychology and simply set your price?

if you have recognized the game, then it's your move.

you can do nothing

or

you can respond

but act like you've been there before.... even if you haven't

 

[hugegrowth]

Decide your price or price range. Are you likely to get another offer in the future? Could they pick another name? Chances are you won't have perfect info to go on, so do your best based on the info you have. Looks like you are in a good position to start.

 

[grcorp]

Trust your gut feeling. If your instinct says that the sudden registration of all the TLD's and your receipt of that email have anything to do with each other, there is a very good chance that is the case. Personally, I doubt it's just a coincidence.

Quote them a high price and stick to it. If this is the case, they've gone to not just the time, but the expense to register all these names in other TLD's. They've not just "bought in" to the name, they've bought into it at the "table limit", in the sense that they actually could not have invested any more in trying to secure this brand in a non-adversarial manner. By that, I mean the next step up in cost would be to do a C&D/initiate UDRP.

In any case, you have what they want. They can't just "pick another domain" if they're this stuck on the name. So, if I were you, I wouldn't quote under $5,000. The sob story should not sway you.

Worst that can happen: They say no.

Best that can happen: They pay your price.

Just remember. It's YOUR domain. Therefore, it's YOUR price.

 

[Tom K.]

Thanks for the great feedback.

Gut feeling is that it's the same entity playing a game or something fishy anyway. Probably best response to this scenario is do nothing and let them reach you from a business contact. Then real negotiation can begin.

 

[Tom K.]

Any thoughts on offering the provision to break down the payment into 2 or 3 payments so that the end user can pay the full price? My take is don't do it. If they want the name they will find a way to pay in single payment. What do you think?

 

[copper]

Any thoughts on offering the provision to break down the payment into 2 or 3 payments so that the end user can pay the full price? My take is don't do it. If they want the name they will find a way to pay in single payment. What do you think?

Why not?
Just change NS.
Don't change other whois until you get full pymt.
No refund.
You keep the domain if buyer miss pymt.

Put them on paper and you are good to go

 

[Raider]

I sold a domain where the buyer couldn't afford it and I offered to accept payments, not knowing me he was very reluctant to do it, I informed him after the first payment I would change the NS to his, but it was only after speaking on the phone that he agreed to proceed, He sent me 3 post dated checks, 2 had cleared and when it came time to deposit the last one, he called and asked me to give him more time before I made the deposit, a month I think it was, I gladly gave it to him and transferred the name over after it cleared.. If I remember right he was a Pastor, very nice man from Louisiana.

The biggest tip I can give you is, don't be so quick to negotiate, by standing close to your price you can gauge how much the buyer is actually willing to pay.

 

[Mark Talbot]

If you own the dot com,.. take the sob story and move on not looking back.

They sob because they have to.

 

[Raider]

If you own the dot com,.. take the sob story and move on not looking back.

They sob because they have to.

The most popular one I get is from struggling art students, or from people who want the name for informational use only, that's when I refer to buying the .info.

 

[BiggieBiggie is verified member.]

Any thoughts on offering the provision to break down the payment into 2 or 3 payments so that the end user can pay the full price? My take is don't do it. If they want the name they will find a way to pay in single payment. What do you think?

what you've described is actually a "short term, lease to own" deal.

providing a lease/rent option to an interested party can be advantageous to both you and the buyer.

if they cannot afford "your price" at the present time, then you can offer that option and break it down (full asking price) in monthly payments over a few months or several years.

this, my young jedi, is where the force is with the seller, where you control the price...not the buyer.

 

[Domonetise]

Why not send them an email with your fixed price saying that you have it at Sedo, but the price will only stand for 24hrs before you change it back to "Make an Offer" If they really want it bad, then you just might get your price.

I've only sold one domain, and that's how I got my price, after the low ball offer and sob story. It was only for a few hundred $, but it worked.

Put the domain name in every 2 or 3 sentences linked to your sedo offer page with your sedo partner ID in the URL and get 25% of sedos commission on the sale.

 

[Mark Talbot]

The most popular one I get is from struggling art students, or from people who want the name for informational use only, that's when I refer to buying the .info.

My last one similar was "I want the dot com because the guys like to call me that at the club".

He eventually bid it up to a grand at Sedo over several months. I still let that slide with a chuckle.