I make quite a few private acquisition offers via email on a daily basis. I am in constant contact with people who own domain names, and the vast (maybe 99.9%) majority of these domain names are owned people who bought the domain name with a plan to use it.

When making an offer, I try to be as reasonable as possible. I know that a low offer on a good domain name won’t elicit a response, and a high offer will hurt the chances of making a solid return on my investment. Making a reasonable offer takes some finesse, but it is an important aspect of the acquisition process for me.

More often than not, a response I receive is “the domain name is not for sale.” I have found that this sometimes really means

The vast majority of opening offers I receive to buy my domain names are very low. I would guesstimate the average opening offer is well under $1,000, with the majority probably being around $100. Frankly, it’s a bit disheartening and frustrating to receive a $100 offer for a domain name I bought for $xx,xxx.

On the rare occasion that I do receive a decent offer for a domain name, I get excited because I know the prospective buyer has at least done some homework. We might not end up reaching an agreement, but at least the opening offer doesn’t make the prospect look unqualified and uneducated. I try to respond to all inquiries, but I am much more inclined to ignore an uneducated offer than deal with someone who clearly doesn’t have any idea about domain name values.

When I am on the other side of the negotiating table, I take my experience with

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

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