As hard as I try to be nice when completing a domain name purchase or sale, I have been a participant in what you might call “challenging” negotiations. Regardless of what is being discussed, negotiations can become contentious. I think domain name negotiations can be even more contentious than usual because some people think aftermarket domain names are overpriced, and they don’t like the fact that people buy domain names as investments. Put simply, some people do not like dealing with domain investors.
I am sure there have been plenty of negotiations that ended with one party not being happy with the other party (or the domain broker who represented a particular party) after a deal is transacted. I can’t help but think of this article posted by Andrew to illustrate a case where one side of a deal was unhappy with some part of the transaction. Sometimes people keep this to themselves, but other times, they want to express how they feel to as many people as they can.
With that being said, once a deal is reached, I think it is important to add something to the sales contract that prohibits the either party from saying negative things about each other or the transaction. Perhaps this would be covered in a non-disclosure section of a contract or a separate non-disclosure agreement included in the deal, but it should be comprehensive enough to cover everything related to the negotiation and outcome (not just sale price).
Keep in mind that I am not an attorney and have no legal experience, so I can’t offer advice on what to add to an agreement to protect the privacy of the negotiation. I would recommend that you speak with your own legal counsel or an experienced domain name attorney who could give you much better guidance about how this can be worked into a sales agreement, as well as what penalties are appropriate for violations. Obviously, a lawyer could give you more guidance about how to set this up to protect your interests.
Additionally, if this is added to an agreement, it is a two way street. You will also be expected to uphold the confidentiality of the agreement as well!
Some negotiations can be challenging. Hopefully, you are able to protect your reputation from being damaged so that a future buyer or seller doesn’t read something bad about you and opt to not close a deal as a result.
Yes, I agree with the fact that many end-users (especially), do not like to deal with domain investors. Mainly because the general population out of the domain aftermarket industry do not even realize that there is a industry for it.
Having a lawyer to aid out might be both good and bad. It is good if the lawyer stays in the background. An already frustrated buyer (then again, those paying retail price) might be further antagonized if the seller would want to “show” the end-user that a lawyer is involved.
Had one recent incident that an end-user ultimately back-off a deal because he felt “threatened” or rather offended by the fact the buyer kept insisting a lawyer to be drafted in for a low $X,XXX figure sum. Oh well…so no moolah
Anyway, my point is, it also depends on the figure and value of the domain being transacted too
Many end user buyers can be complete a*holes. Those that usually boast about how they got a domain for $100k instead of “millions” for their start-up, usually end up folding after several fruitless rounds of financing.
I posted in another thread about the nice big lecture I gave a problem seller one time. I really wanted the domain, but once it was clear enough he wasn’t going to sell it to me anymore it felt good to let him have what he deserved. I especially liked calling him a “cry baby.”
I found that people with domain experience also renege on contracts as with the case of “Amit Tripathi” based in India who agreed the sale of a domain on Sedo and payment was made on my part:
From Sedo: Please be advised that we have indeed been following up with the seller and trying to get him to move forward with the push to Sedo’s GoDaddy account since November 10, when we received your payment. He asked us for more assistance the next day, which we provided to him, but since then we have not been able to reach him, nor has he responded to our attempts to contact him. The transaction was legally binding on the part of both parties. “Amit Tripathi” is commited to the legally binding contract it is therefor for Sedo to enforce this action. I do not want a refund from Sedo, I expect Sedo to enforce the action and transfer the domain into my account on completion. It is the legal resonsability of Sedo as it is to Sedo that both parties agreed terms and that is apart from your duty of care.
Still waiting !! Sedo is a toothless wolf.