New Leadership May Mean New Opportunity

1

There have been quite a few times where I’ve been negotiating with a prospective buyer, and I can tell the company wants to buy a particular domain name but we were unable to come to terms on the price. When this happens, I let them know they can contact me in the future if their offer changes, but until then, I will keep the domain name and possibly find another company to buy it.

As time passes, new leadership may enter the company. Perhaps a new Chief Marketing Officer (CMO) or Chief Executive Officer (CEO) takes a position at the company. The change in leadership, especially if it involved the counterparty in a negotiation, may bear fruit for your negotiation. This new executive may have a stronger interest in the domain name, and the company may be more willing to buy it at a price that is closer to the initial asking price.

This may not

You May Get Only One Chance to Buy a Domain Name

There are quite a few ways to try and purchase a domain name in private. A buyer can negotiate directly with the owner, an anonymous offer can be placed on the domain name, a broker can be engaged to negotiate, or a domain name can be purchased through a domain marketplace. Despite all of the great options, buyers need to know that they may only get one good chance to buy a domain name.

When a prospective buyer inquires about a domain name, the domain owner may begin doing research on who the buyer is and why the buyer wants the domain name. He will also determine the value of the domain name, and a major factor is the demand for the domain name.

Continued efforts at acquiring a domain name may end up increasing the price of the domain name. A domain owner may sense desperation by the prospective buyer, and the price may be adjusted accordingly. Similarly, if the inquiries were made privately, the domain owner may assume more than one prospective buyer is interested in the domain name, and the price may also rise as a result of the perceived increase in demand.

Domain buyers should realize

Get Attention from a Press Release

3

When a domain broker or domain brokerage takes an excellent domain name under exclusive listing, it’s a smart idea to distribute a press release to announce that the domain name is for sale. The broker will want to share information about the domain name, why it is special, and perhaps include some pricing information. The idea is to let as many people possible know the domain name is on the market.

In my opinion, the release is important, but getting it in front of the right people is even more important. I think there are four types of people who should receive the press release, directly from the broker:

My Thoughts on Phone Negotiations

I have never really enjoyed chatting on the phone. This sometimes goes for chatting with friends, but it almost always pertains to domain name negotiations. There are some times when a phone conversation can be fruitful though, and I thought I would share some thoughts on phone negotiations.

When I want to inquire about a domain name as a buyer, I will usually send an email and follow up with a phone call if it could be fruitful. For instance, if the domain owner seems willing to sell the domain name and we need to come to terms on the price, I might give a phone call. Some people will brush off my call and stick to email, but others are more chatty, and we can finalize a deal quickly. I like the fact the I can speed up a discussion rather than extend it hours or days with email.

When someone randomly calls me to discuss a domain name,

Due Diligence: Contacting a Previous Owner

One of the easiest ways a prospective domain name buyer can confirm ownership of the domain name is by calling the most recent former owner of that particular domain name. The prospect can then ask if the former owner sold the domain name to the current owner, ensuring that the provenance is clear. There are pros and cons to doing this, and I am curious to know what you think of this due diligence step.

The previous owner’s contact information can be obtained using a tool like DomainTools whois history tool or possibly even Archive.org if the domain name had been a developed website. Once the phone number or email address information is known, a quick contact can confirm whether the current owner rightfully acquired the domain name.

Assuming the answer is yes, it will clear up any question about ownership. Additionally, perhaps the prospect can glean other information about the sale (public auction, venue, and maybe even the price). If the answer is no or if it is unclear, it

List of Domain Sales Newsletters

Many of the top domain name brokers and domain brokerages have weekly or monthly domain sales newsletters. Typically, these newsletters have lists of domain names that are available for sale exclusively through the broker or brokerage. Some of the also include market commentary, which I think is particularly interesting given a domain broker’s position in the resale market.

Some of the best domain purchase opportunities can be found in these newsletters because many aren’t shared publicly, and the prices don’t necessarily reflect actual market value. For example, I saw a broker list a domain name for sale a couple of months ago with a $12,000 purchase price and it recently sold on a public venue almost double. This indicates that there may be better deals available in private than if there was a public auction.

I thought it would be a good idea to compile a list of the current domain broker and brokerage email newsletters. There may be others that I don’t know about or accidentally omitted, so feel free to post a comment if you know of another newsletter. I would prefer to only list third party brokers as opposed to individuals who sell their own domain names because that’s a different type of newsletter.

I recommend using a third party escrow service (I personally use Escrow.com) or a trusted attorney that has an escrow account when dealing with a broker, even if the company is willing to provide escrow services. It’s also important to do your standard due diligence to make sure the listing is legit. I trust most of the professional domain brokers, but I trust my own due diligence above all.

Domain name sale broker newsletters (in alphabetical order):