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, â€œI canâ€™t go any higher,â€ donâ€™t give in, and donâ€™t call him a liar either. Instead counter with a reasoned argument like, â€œI understand what youâ€™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 shouldnâ€™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?