Are you selling a domain name? Did you put your domain portfolio up for sale through Moniker or post it on Sitepoint Marketplace? Do you have visions of big profits from flipping websites you have quickly built up? Great. Now, you need to be prepared to negotiate with buyers. Your negotiation skills help you get the price that you want or even higher. Plus, the buyer is happy with what they paid and are likely to do profitable business with you in the future.
Here are 5 tips that I have found invaluable when negotiating with domain name and website buyers.
1. The Low Ball Bid
Most deals start with the seller asking for a high price and the buyer offering an insanely low bid. Do not get offended or put off by a low ball offer. If somebody has made the effort to make a bid, then they are interested in your property.
The key is to identify one or more elements of your domain that the buyer values. For example, do they own a portfolio of other domains in your niche? If so, then you have something in common to build on. You can move forward with the negotiation by demonstrating your value, not just haggling price.
2. Moving Forward Based on Value
When you ask questions or research other properties owned by the buyer, you can identify what is important to them. This approach helps significantly during the negotiation or when you run into a roadblock. You have to ask how/what/why questions to diffuse any roadblocks and turn them around to increase the value to the buyer. This process is what salespeople call objection handling.
DomainerPro.com had a good example in his How to Negotiate Domain Name Prices post.
Countering Bluffs: I would add that you should learn to recognize and counter the most common bluffs that buyers use. If a buyer says, “I can’t go any higher,†don’t give in, and don’t call him a liar either. Instead counter with a reasoned argument like, “I understand what you’re saying, but this domain name will ultimately save you money by bringing you targeted leads. The extra money is worth it.â€
3. Always Answer Questions
Potential buyers will always have questions about your domain. You will receive even more questions when you are selling an entire website. It is important that you answer these questions thoroughly and quickly. The buyer is asking for details so that they can better value what they are willing to pay. More likely than not, a detailed response from you will help increase the final selling price.
4. Always Answer Questions Honestly
Do not play games with buyers. If you think that you can maximize your selling price by lying and by sayging that your website is not an auto-generated, blackhat SEO quickie, then you are fooling yourself. Buyers know all the tricks and will bail on a deal if you try to snow them. It is okay to be honest. A quickie, no-effort website will not get top dollar, but then again it shouldn’t.
5. Build Relationships for the Future
If you are interested in making money online through a repeatable domain flipping process, then you need to establish and grow relationships. The more key, trusted connections that you have, the more profitable and repeatable you domaining business will be. Just like any business.
Do not burn bridges by weaseling over $100 or even $1000. A single solid relationship can help your business profit 10 or 20 times that. Keep providing value and sharing with your partners and they will return the favor in spades over the long run.
Do you have any other negotiation insights or stories that others can learn from?
10 Comments
Thanks alot i just got some great info, now i can reply to the buyer 🙂
I think i can get more from it and he has the money so…
well, monetizing websites and stuffs should be great. making money on the internet is a great way to earn money “,:
I’m just got an interested buy for a domain that I own and I have never received one since I’m not in the business of buying to sell. It will be interesting to see how it plays out and this article should help me to value my domain better and to negotiate with my potential suitor. Thanks a million!
This was helpful but in my opinion I found I had more success building a relationship up with a website broker who already has a good number of hungry buyers on their books. I have worked with brokers who work on 10 percent fee upon sale but no up-front charges…
Bob this was a useful post that I believe will help people quite a bit. I agree about low ball offers too, they can come across as insulting but you just have to realise its all part of the game:)
All the best Steve Rayes
A prime cut of an article Bob Angus! Thanks for sharing and it couldn’t have come at a better time for me. I do not in the sales business, nor have I even had a garage sale so this will give me a good start in how to deal with my new offer. Nik mentions website brokers, could anyone recommend some of the best out there?
Hi Bob
From my experience as a seller, another useful tip is be willing to either split or pay the auction fees. The fees through someone like Website Broker are not excessive but they may be enough to put off a buyer. By being flexible may just push a deal through.
Mike
Great tip Mike! Like any negotiation, meeting the buyer half way helps to move things along. It may not be a huge dollar impact (though everything helps), but it shows you are reasonable and can be trusted.
Thanks for the very informative blog post. I am very much interested in acquiring some top domain names at DomainKa.com and I could use your points to buy domain names like a pro!
A Seller should list the assets of his/her site but not themselves.
It doesn’t really help to brag or put stock in a successful brand or person (actually this can hurt).
If what you are buying or selling is a domain, be certain it can remain a success after it changes ownership. This worked for me when buying and selling finance sites.