To negotiate a domain when selling is a major part of how much you will get paid or how much money you will make.
You have to keep in mind that the purpose of negotiation is for BOTH parties to end up happy.
Buyers should feel like they got the biggest bang for their buck & sellers should feel that they are happy to part with the domain.
PRO TIP: 90% of domainers are unprofessional when it comes to negotiation, so they end up not selling anything because they take it personally.
Repeat after me: “This is just a business transaction.” Do not take it personally. Domains are not organic beings; don’t get emotional with them.
Steps on How To Successfully Negotiate A Domain Sale:
- Ask for more than you expect to get.
It’s super easy to lower your price, but you cannot go back & raise it. On top of that, you don’t know what the other person is willing to pay.
- Never accept the first offer.
Under no circumstances should you accept the first offer, even if it’s the price you are okay with because, later that night, you will regret that you could have gotten more.
When you get the first offer, act like “are they are joking with you?”
This is going to get them to offer you a little better price. (Every dollar counts!)
- Avoid confrontation.
Avoid confrontation of any kind. At the end of the transaction, the buyer might even buy more domains from you or refer you to other people. This is just a business transaction; do not take it personally.
- Be Reluctant.
If you look and sound desperate to sell the domain, the other party will think that they can push you around to get a lower price. Instead, act as if you are not sure if you want to sell the domain & be calm.
PRO Tip: Don’t respond to offers right away. Schedule it 10-15 hours after.
- Vise Technique
Vise technique is something that your buyer might use to get you to lower your price.
The potential buyer will insist that “ You will have to do better than that!” They are expecting you to respond with a number they can play around with.
Most domainers will respond with a lower number. Don’t do that.
In this case, I want you to respond by saying “EXACTLY how much better do I have to do?” This way, you use the vise technique right back at them.
- Higher Authority
Weak negotiators fall prey to their own egos & present themselves with the final authority to close the deal. A strong negotiator plays the good guy & makes the higher authority a bad guy.
For example: “I know you are offering a good price, but my manager doesn’t agree with me; can we offer him a better price?”
- Never Meet in the “Middle.”
A lot of buyers will say, “Can we meet in the middle?”
In this case, play a little dumb. You will respond back by saying, “OHHH . . . You meant to say you will go UP to X amount?! Let me talk to my boss and get back to you.”
In this case, you have just raised the “low-end pricing.”
- Don’t reveal your bottom line.
Many domainers get cocky and respond to buyers by saying, “I am only accepting $X for this domain!” You could do that, but you will lose 7/10 deals just because you had to be cocky when a buyer came to YOU to buy YOUR domain.
You don’t know who is backing the other side. ALWAYS go through the negotiation & speak with the potential buyer.
- Withdraw Offer.
If you are dealing with a very interested party, you can tell them that your superior executive has decided to withdraw from negotiation & is also canceling the previous offer & the bottom price you can do is “X”.
This is kind of a risky tactic. Use it wisely; it will either break the deal or get you more than the expected amount.
- Make them feel good.
Once you have been offered a price for which you are willing to part with the domain, make them feel good by saying that you were wanting more, but are letting it go because the domain deserves to “see the light” and you want to see it grow (as if it’s your child).
This will make them feel good that they got a bargain & they will want to do business with you in the future.