7 Tips for Successful Domain Negotiations
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After thinking about a name for your business or investment, the next thing is to check its availability. On checking, it is listed for several thousand or even millions. Do you just give up? You don't have to.
You can negotiate to get a better domain price. But where do you start? In this blog post, we share practical tips you can use in domain negotiations for a favorable deal. Let's get started.
Find the Owner & Negotiate Directly
Domain brokers usually charge a margin that can be passed to the buyer. If you can get the seller's contacts and negotiate directly, you can get a better deal. But it comes with its demerits, like escrow fees for secure transactions.
Another hurdle is getting the domain owner's contacts (phone number, email and postal address). You can get this information through whois lookup. Not only do you get the contact information, but also the location of the seller. If they are within your locality, it is even easier to handle the transactions without third parties. Unlike previously, due to GDPR strict measures, this data is no longer publicly available.
Another option for getting the seller's contact information is through the website template. Some brokers create a landing page with the details of how you can reach them.
Do Your Research to Find Price Estimates
In the absence of information, you can jump to the conclusion that a domain name price is fair. But when you get estimates, you have a starting point in your negotiations. Our homepage widget provides price estimates for similar domains to help you make an informed decision.
All you have to do is insert the domain name in the search box and click check. Then, scroll to the bottom to get a list of similar domain names and the amounts they have fetched.
Automated domain name appraisal is another option to get a domain price estimate. There are many options, such as Sedo, saw.com, EstiBot, or alter.com. However, it is advisable to be cautious because automated domain appraisals do not consider every factor and might give a higher price indication to entice you to list on their platform.
Let the Seller Go First
This is a hard call because most sellers are unwilling to disclose the price first. But you can give it a try. Allowing the seller to quote first lets you know whether it is a bargain or you'll need to negotiate more assertively to secure the domain at a favorable price.
Once you get the quote, the amount can only go lower. This is a safety net and sets the pace for domain negotiations. Apart from that, some price quotes can show that the seller is unwilling to let the domain go. In such instances, you can turn down the offer if it is not even near your budget estimates.
The seller might request to know your budget. In that case, share your upper limit and tell them it is your highest bid.
Ask for a Flexible Payment Plan
Expired, off-market, and premium domain prices can be significant to pay in a single installment. In such cases, most sellers and domain brokers offer flexible payment plans that can make acquiring these valuable domains more manageable. But there are a few conditions you should keep in mind.
First, you should know the effects of defaulting on your installments. Some sellers will disable the domain name until you honor your payments, while others will refund a percentage of the paid amount and reclaim the domain name.
Installment payments could also mean a higher domain price. So, you should calculate the accumulated amount you will have paid at the end of the payment period. That said, you should ask the following questions to make an informed decision:
- How long is the repayment period?
- What are the repercussions of defaulting?
- What is the minimum down payment?
- Is there a minimum purchase price for installment plans?
Unless it is unavoidable, buying a domain name in installments is not advisable because you don't get its full control until you make full payment.
Secure All the Relevant Extensions
We all know that .com is the most preferred domain extension. But if you want to increase the value of a domain name, you should acquire the most relevant domain name extensions.
For example, if you acquire a domain name you intend to use for your healthcare facility, adding .clinic TLD will be a bonus. Consider registering popular extensions like .net, .org, and .co to have full control over the brand name. This strategy also allows you to redirect different site versions to the main domain.
Most times, these extensions are available at a lower price. If you are a domain investor, you have higher bargaining power if you have all the TLDs under your name. It also protects you against registration of similar domain names, which can water down the value of your domain name.
Know When to Let Go
Setting a budget ceiling before the domain negotiations can help you know when you should give up on a deal. If you get into a discussion with a blank cheque, you can easily compromise and give the seller more bargaining power.
Of course, it doesn't have to be a fixed amount. However, you can put it as a percentage of the domain name price. For example, if you are a domain investor, you can set your range at 15% of the estimate.
But when letting a deal slip, you should do it politely. Just because a deal didn’t go through doesn’t mean it won’t do in the future. Some sellers change their minds, especially when they have held a domain name for long.
Use Escrow for Protection
Domain hijacking is becoming common with the increase in cyber security threats. If you don't want to fall prey to fraudulent activities, using an escrow service is prudent to ensure protection during the domain transfer process. Although this is not part of domain negotiations, it is a strategy to ensure you reap the fruits of the process.
Escrow is an intermediary that ensures security for the domain seller and buyer. The platform releases the funds when both parties meet all their obligations. Through the payment platform, you can safeguard your investment for peace of mind.
The amounts you see in domain sales are not usually fixed. You can negotiate for a better price. But how do you go about it?
First, you can get the seller's contact details and discuss with them directly. Apart from that, do your research to get the price estimates. If possible, let the seller quote their price first and request a flexible payment plan.
You should also secure all the relevant extensions to increase the domain value. When the deal is out of budget, you should let it slip. Lastly, use escrow for secure transactions.
There you have it; all the tips you need to get the best domain price. Don't forget the deal is not complete before you get all the necessary metrics on our tools. Bishop will not only help you get the estimates but also evaluate the SEO-friendliness of the domain name.
How do you negotiate the sale of a domain name?
To negotiate the sale of a domain name, you should first get the contacts of the domain owner. After that, inquire if the domain is for sale. Next, you can request to get a quote or give an offer. If the seller accepts the offer, you can close the deal and transact using escrow.
Can you negotiate premium domain names?
Premium domains are usually the easiest to negotiate because they have high-profit margins. However, you should not give way too low prices that can disinterest the seller. Ensure your offer matches the value and potential of the domain name.
How can I sell my domain name fast and for maximum value?
One of the most reliable ways to sell your domain name quickly and for maximum value is to list it on different platforms. You should also provide your contact details to allow potential buyers to contact you directly.