Rick Schwartz shared some sage advice today, and I think domain investors should consider taking it, especially when they may be their own worst enemy in a negotiation:
The Best time to get a broker for #Domains is when you have a REAL inquiry.
That’s when you need a PRO!
Tell them they need to talk to your broker.
Don’t give a price or YOU LOSE!
Don’t say a word or YOU LOSE!
SHUT THE “F”-UP or YOU LOSE!
“I’ll have my broker contact you.” pic.twitter.com/3jmXuSOZgi
— Rick Schwartz 👑 The DomainKing® 👑 Since 1995 👑 (@DomainKing) December 14, 2020
If you receive a bonafide inquiry or offer for one of your domain names, it might be a good time to hand it off to a professional domain broker who has the expertise to help best represent your interests. Oftentimes, legitimate domain buyers use a broker to negotiate or advise on a deal, and it can be beneficial for an investor to be represented by someone who brokers domain names for a living.
There have been a number of times I have handed off a negotiation to a broker. Importantly, the handoff should be done prior to engaging with the other party so it does not look peculiar to change things up in the middle of a negotiation. Of course, the domain name would need to be substantially valuable in order pique the interest of a commission-based broker.
In addition to having domain sales negotiation expertise, a broker will be able to give a domain registrant an idea about the value of their domain name. Perhaps the asking price is going to be set too low. It’s always nice to have the benefit of a professional’s opinion on domain name valuation.
If you think a broker will be able to generate, at the very least, more than they will end up charging in commission, it may be worthwhile to hand a lead off to a broker. People who aren’t natural negotiators could benefit from doing this. Importantly, the domain registrant should ensure the broker they choose has the time and desire to represent the domain name. The registrant should check the broker’s references and evaluate any sort of exclusivity requirement requested by the broker.
Having a broker represent a domain registrant can not only help with a strong negotiation, but the registrant may look stronger if the domain name is represented by a reputable broker. It’s a wise idea from Rick Schwartz.