The Role of Negotiation in Domain Sales: How to Get the Best Price for Your Domains

Best Price for Your Domains

Negotiation is a strategic discussion between two or more parties to arrive at a mutual agreement. It is an essential aspect of sales to reach a win-win situation for both the buyer and seller. However, not all negotiations lead to a conversion. But good negotiation skills will still benefit the business whether it leads to a sale or not. 

Now that we live in the digital era, is negotiation still a critical factor in selling domains? How does it affect your domain sales? What does it bring to your domain investing business? 

In this article, we will discuss how you can get the best price for your domains through negotiation. Although some investors rely on top domain brokers in negotiating a sale, you still need to have negotiation skills to sell a domain. Read further as we share some tips for negotiating to maximize domain sales and build rapport with your buyers. 

Importance of Negotiation in Domain Sales

Get the best deal 

A successful negotiation is considered to be a win-win for the seller and the buyer. If you reach a price within your expected range, then you both get what you intended to have. Profit for you, and the domain for the buyer. You get the best deal where both parties are satisfied and happy. If you skip negotiations and stick with your price, expect a slow turnout for sales and growth.

Increase domain value

Some domains may be of high value to you, but not as much to a domain buyer. By negotiating, you demonstrate your domain’s worth. Not caving into buyers with low offers makes them rethink the value of the domain. 

Maximize profits

All businesses, including domain selling, want to maximize profits. By not having a set price, you may land at an amount higher than what you expected. In contrast to what was mentioned above, some domains may be worth more to some buyers. One may badly need the domain for his business that he is willing to purchase at a higher price.

Develop relationships with buyers

This is one benefit that can be advantageous to you, whether you land a deal or not. Keeping your emotions in check and maintaining your composure during negotiations can help you build a relationship with buyers. Some may not lead to a conversion, but buyers will not hesitate to reach out to you if you have another domain that they would like to make an offer to. Respectful sellers gain more buyers.

Build reputation

Assuming you already have a good relationship with domain buyers, you will likely have repeat clients and referrals. This will help boost your reputation within the industry. It will be known that you are easy and pleasant to negotiate with.

12 Tips in Domain Sales Negotiations

1. Know your domain

As a seller, it is important that you know the market value of your domain. If you purchased it from another owner, it is obvious that you will sell it at a higher price. Consider researching how much similar domains are worth. There are websites that will give you an idea of how you should price your domains. Examples of these are GoDaddy, Sedo, and NameBio. 

2. “Contact Us” on landing pages

Your domains may have a landing page with a BIN (Buy It Now) price on it. Avoid placing a “Send Us An Offer” or “Make Us An Offer” button. It is wiser to put “Contact Us” or “Inquire” instead. As you have already stated your BIN price, inviting buyers to make an offer would only lead them to think that you are accepting lower-priced deals. This would undermine the value of your domain as well. 

3. Know your buyer

Knowing your buyer is a bit tricky. Seasoned buyers and large companies often use third parties to make an offer for them. Some may even use free emails, like Gmail, to hide their identity. Do not fall for the “I am just a beginner at domain investing,” or the “I just need the domain for a school project” trick. These lines are commonly used by buyers to persuade sellers to lower the price of the domain. It may be tough to crack the identity of your buyer, but it is still worth trying to know details about him. Casually ask questions and read between the lines. If he has a domain portfolio or a business relevant to your domain, check it out to get hints of how much he needs and values your domain. 

4. Ask the buyer to name the price

Let the buyer make the first offer. Buyers usually start at their lowest price. Do not name your price without knowing the minimum price your buyer is willing to spend. It is not impossible that their first offer might be higher than what you expected. On the other hand, if your buyer proposes a significantly low amount, it does not mean that you need to counter it with a price close to it. It is also vital that you do not undervalue your domain.

5. Do not settle on the first offer

First offers are just the start of negotiations. As discussed above, a buyer’s first offer is usually the lowest amount he is willing to pay for your domain. Some buyers trick sellers by giving them lowball offers to check if sellers know the real value of the domain. Therefore, it is mandatory that you do not cave in on the first offer.

6. Do not rush

Do not act as if you are desperate in selling your domain. Take your time in negotiating. Do not reply to emails immediately. Remember, the buyer contacted you and not the other way around. Consistent follow-ups may just frustrate the buyer. Too much eagerness in making a sale may also lead to the buyer asking for a much lower price. It signals that you need the money more than they need the domain.

7. Know when to walk away 

Manage your expectations. Negotiations may or may not lead you to a domain sale. Set (but do not disclose) your bottom line price for the domain. If the buyer is unreasonable and is not willing to compromise, it is best to decline the offer politely. This displays how much you value the domain, and that you are not willing to risk its integrity. Besides, if a buyer walks away, there is still a possibility that he will reconsider and contact you again. 

8. Set a deadline 

It helps that you set a deadline for your offer. You may even hint at a price increase in the coming months for the same kind of domains in your portfolio. This will give your buyer a sense of urgency in purchasing your domain.

9. Offer other options

Instead of giving large discounts, you may give them the option of paying in terms. A slightly lower amount than what you are asking for, but paid in monthly terms may be attractive to the buyer. Having more than one option for the buyer gives him something to think about than just rejecting one.

10. Do not over justify

Do not reveal how much you paid for the domain when you bought it. Buyers are not negotiating based on how much you spent on it. If they reached out to you, it means they want your domain. You do not have to justify the amount that you’re putting on it.  Do not mention how domains of the same kind are worth in auction sites or marketplaces. This may push them to check websites and see domains for sale at wholesale prices. 

11. Maintain composure 

Always keep calm when negotiating with buyers. Never lose the respect you have for your buyer, even if they offer a very low price. Do not discount the possibility that cheap offers may just be the starting point of the best deals. For this reason, do not let your emotions get in the way by ending the negotiation right away. By taking it personally, you may end up with decisions you regret later. Politely decline if you cannot reach a price you both agree with. Be empathetic to your buyer while staying firm with your price. A negotiation should not burn a bridge with a buyer for he can still be a potential client in the future.

12. Be realistic

Do not overprice your domain. Overpriced domains will intimidate new domain investors and scare buyers away. Seasoned buyers know the value of domains and overpricing them could create a bad reputation for you in the domain investment industry. 

Key Takeaways

Negotiations play a crucial role in your domain sales. It will not only help you to maximize your profits but will also establish your reputation and relationship among other domain investors. The different needs, principles, and mindsets of buyers may prove to be challenging. Just remain focused on the goal of the negotiation and apply the 12 strategies mentioned above to help you land a good deal.

It is also favorable to put your agreement into writing after the negotiation. Have it signed by both parties to avoid future disputes and conflicts. Do not let your domains sit too long in your portfolio waiting for an offer that matches your maximum price. It is best to consider every offer, even if it starts low. The power of negotiation could lead you from a lowball offer to the best deal you can ever have.

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