Getting to the right price in a domain name sale negotiation is often difficult. The buyer doesn’t want to pay more than a certain amount to buy the domain name, and the seller is often asking more than the buyer is willing to spend for it. Convincing someone why a domain name is worth the asking price can be a challenge, but a domain seller might want to mention the replacement cost as rationale for the price.

To me, the replacement cost for a domain name is the amount of money I would need to spend in order to buy an equal or better domain name if I would sell one of my assets. If I sell a domain name for $10k and it costs me $15k to buy an equivalent domain name, I am losing out because I am lowering the value of my portfolio while not generating enough income  to improve it. For someone like me, it doesn’t make sense to sell one of my domain names for less than the replacement cost of an equal or better domain name.

I think the majority of  domain buyers

Elliot’s blog posting yesterday about conflicts of interest with domain brokers reminded me of what happened when I sold my Bored.com network of sites in 2008 for $4.5 million.

I was not really looking to sell Bored.com, but a broker approached me and asked if he could shop it around (like to Google, Yahoo, etc.). I had never heard of this broker (I don’t think he is still around) but since I was not actively looking to sell the site I figured it couldn’t hurt. After around 6 months he did not generate any offers so I sent out some emails on my own, since I had not given him an exclusive listing.

A few months later one of my potential buyers made me an offer. At the same exact time the broker also found a buyer. Both started in the

I’ve worked with a variety of domain brokers on outbound and inbound domain sales, and I have experienced different levels of communication with these domain brokers and brokerages. I think the domain owner should let the domain broker know how much communication is desired since different brokers tend to have different communication preferences.

When I have engaged a domain broker for an inbound purchase inquiry, especially for a domain name that receives quite a bit of regular interest, I appreciate it when my domain broker follows up with me regularly. I like to know what the buyer is thinking and where the buyer is at in terms of interest or taking action. Even if there is no chance of a deal (ie buyer willing to pay $10k but my price is $100k), I want to be updated with the status. Perhaps I can offer more flexibility in pricing or terms, and knowing what the buyer is thinking is helpful. It’s also helpful to know a status when holding negotiations with more than one party.

When I have engaged a domain broker for outbound sales, I