Successfully negotiating and closing a domain deal is an art form. This is the skill that is paramount in achieving prominence in domain industry and personal riches as well. Closing a deal has two important objectives:
- Persuading the potential buyer into buying the domain.
- The selling price of the domain must result in profit.
Selling in loss does not count closing a deal in domaining business. Deal for a domain starts usually under two following circumstances:
- Buyer Contacts the Seller: The buyer or his agent (also called domain broker) approaches the seller directly through email, phone or other mode of communication. The contact details of the seller is obtained either through the whois search or from the site where the domain is listed for sale.
- Seller Contacts the Buyer: The seller or his agent after doing some research contacts the potential buyer(s) and pitch the sale. This is called ‘outbounding’ in domain jargon. The contact details of the potential buyers can be obtained using some research on the web. Some free and paid tools like Domain IQ helps a lot in finding potential buyers.
From here starts negotiation of a deal. Negotiating a deal is not as simple as it may sound. It may take weeks, often months, and even years to close a deal. Since we are the domainers, we would want to sell our domains at maximum possible profit, the onus is on us to close the deal as soon as possible.
So as sellers how do we close a deal?
As I said before selling domains is an art form. We must be well versed in this art to be able to successfully close domain deals.
The first thing to know the importance the domain holds to the potential buyers. Ask yourself whether the domain you hold can be substituted with another domain? If the domain can be substituted with another one, then it is better to be a realistic with price you ask. All domains are not same. You can afford to quote exorbitant price for evergreen domains like LL, LLL, NN, NNN, NNNN, some LLLL, some NNNN and premium words dictionary names. Others unless exact match domains don’t fit the bill.
In domain negotiation, there is no room to get personal with the other party. Keep it as business. Everything should be professionally dealt with. You must have a custom email. The content of your email or speech should be thoroughly professional. You have to be timely, transparent and respectful towards other party in your all correspondence. You must have all kind of communication tools to allow the potential buyer to contact you with his/her convenience.
Don’t hurry to close the deal because in your hurry you might be ready to accept lower amount and thus potentially could leave a lot of money on table. Besides, some buyers, especially the brokers and resellers, are adept of exploiting a seller’s desperation to sell. Don’t fall prey to such tactics. It is important to know that some deals take weeks, some months and even years to be closed. Sumo.com negotiation went for more than one year. So be patient and give the potential buyer time and convenience to respond.
Always follow up the inquiries/replies of the potential buyers. Even if the potential buyer does not respond, be persistent with your follow up. You can shoot up messages every week or so to elicit a feedback or response. That would help you immensely. Follow up is important. Following up has psychological impact on the other party. Sooner or later he/she will respond.
Many end users have no clue how domain trade are done. You must not exploit their ignorance because to do so is very unethical. Once your potential buyer gets a whip that you are misleading him/her, he/she could simply back off even he/she needs the domain. It is about honesty and integrity, which is paramount in every kind of trade.
Always go for reputed third party Escrow. Try to include Escrow fees in your selling price quote to the potential buyers and tell them that you are going to borne the Escrow fees. This tactics will give extra push to the deal and you lose nothing. Escrow fee will make the deal attractive to the potential buyers.
Finally, desperation is the cause for less profit and often lead to emotional fight that may piss off the potential buyers. If you try to close the deal faster or shooting too much messages to the potential buyers, it would take away your bargaining power. No matter how badly you need money avoid desperation. You can’t live your life pleading with others.
The same domain can be sold at extremely different prices by two different persons. It is all because the person who can sell the domain with higher price is good at closing a deal than than other. And closing a deal requires certain sort of attitudes, which I did discuss in the article.