I read about domain names getting sold for six figures and seven figures quite often. And I also try my best to keep an eye on GoDaddy Hotdeals to see what types of deals I can scoop up and resell. Four digits is the best I’ve done so far but I’ve also never really had an opportunity to get my hands on a name worth such or even had negotiations with someone with that type of bankroll. Perhaps one day I’ll be at that caliber but for the time being I just take baby steps. How should you approach your domain sales? Negotiations are an art and a skill and each one is a unique situation. With that being said, there are some things that you need to keep in mind which will lead to a better result for you.
Do Your Homework
Both the seller and the buyer want to have the upper hand. It’s important to try and figure out who your buyer is so you may be able to figure out what kind of budget they may have access to. You will find that buyers will usually not use their real name and even go as far as hiding their IP address. If they are from North America or Europe, then you’ll know that their budget will likely be higher compared to someone from South America or parts of Asia (no disrespect to South America or Asia).
Control The Negotiation
The good news is, the domain is under your name therefore making you in control. So who should through out the first number to get an idea of what the final price will be? Studies have shown that when the seller makes the first offer, the final settlement price tends to be higher than when the buyer pulls the trigger first. Just remember that if the buyer makes the first offer, it’s likely going to be a low ball offer anyway. So better that you make your expectations known early in the game. It’s important to maintain control of the situation and negotiations. It’s your domain, don’t get bullied and walked on.
Your Online Poker Face
Negotiations will likely take place through emails or phone calls so you obliviously can’t show your poker face but the point is to hold your grown and not be impressed with the buyers offer regardless of whether it meets your expectations or not. The entire point is to get as much money as possible from the deal. Acting a little offended by their offer might work in your favor.
Regardless of whether you sell or not, the fact is that you are the owner of the domain. Don’t let emotions get in the way and keep things professional. You never know who you are dealing with and the buyer’s bankroll could be in the millions. He/She can be back for more, potential referrals, or perhaps they have authority and could influence your name in the industry (in a positive or negative way).
Don’t Rush The Deal
One of the best ways to get screwed over is to rush through a sale. They have a sense of urgency and this is a strategy that is being deployed against you. If they are in a hurry, make them pay for it. Just remember, if it’s something they want , then they are going to hate waiting for it. Don’t be a granny but make sure to take your time and see if there are better offers on the table.