Someone asked me for advice about negotiating the sale of a domain name he owns. I shared a few thoughts based on what I could quickly see, but one thing I think is important to remember is that every negotiation is different.
Buyers come from all over the world. They have different personalities, different business customs, and unique communication styles and tones. Some people are friendly and conversational, while others are short and to the point. Some are founders who are personally invested in the name, while others work for or on behalf of the other party and don’t have a personal stake in the outcome.
The circumstances of every negotiation are also different. A company considering a rebranding may be evaluating several possible domain names at the same time and could easily choose one name over another for any reason. Another company may have already established its brand and feel that one particular domain name is the best or only option for them. They may also believe they have more rights to the domain name than the registrant and negotiate with a sense of entitlement.
Timing can also have a major impact on a negotiation. A startup may be gathering prices before making a purchase decision and there is no rush on a decision. Another company may have just raised a round of funding and want to secure its domain name before announcing the news. A business could have a major product launch or breakthrough that suddenly makes acquiring the right domain name an urgent need. Some negotiations are more sensitive about the time to close a deal than the final price.
Companies have different budgets and value a domain name’s importance differently. A particularly good domain name may seem critical to one company but hold less importance to another.
There isn’t a singular negotiation strategy that works every time. Holding firm and saying “no” may work in one situation and kill another deal as the buyer chooses an alternative option without looking back. Following up with someone who went silent may help move one negotiation forward but could also make a seller look too eager to close a deal and put the seller in a less ideal negotiating position.
Experience can help you understand the situation or counterparty a bit more, but it’s not always possible to get a full read. My approach is to know the value of my domain name, understand how likely it is a better or more funded buyer will come along and when, and determine whether I would rather have the cash that is on the table or the domain name that is in my portfolio.
Every buyer and situation is unique, and that makes every negotiation different.
