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.
I love Rick’s no nonsense style: “SHUT THE “F”-UP or YOU LOSE!” How can we get him to run for US President.
“The Best time to get a broker for #Domains is when you have a REAL inquiry.”
Question to all: Who would you use and why?
Gregg — I strongly recommend (and use myself) Kate Buckley at Buckley Media:
https://www.buckleymedia.com/team.html
Why? Smart. Knowledgeable. Informed. Hard-working. Very successful.
Results speak for themselves.
What will determine if it’s a ‘real’ inquiry so you know to engage a broker?
Any inquiry with an offer of at least your stated minimum threshold (which you set at your marketplace to filter out most confused or uncommitted inquiries), or any inquiry with a ‘real’ email i.e. not gmail etc.
I typically click the button that sends the inquiry to the salesperson/’broker’ for names unlikely to net over $40k (even if I quote over $100k).
Any name where I realistically expect at least $40k (be honest with yourself and not attached to visions of grandeur), and done a bit of research confirming the inquiry is probably from a genuine end user, then I may send it to real broker.
It’s a waste of everyones time finding a real broker for the under mid-five-figure inquiries, unless you have an existing relationship along with a portfolio with a high wholesale value e.g. over a million, because otherwise you need to sign contracts etc. for each domain just like a real estate agent would. So as I mentioned I forward most inquiries to a salesperson/’broker’ e.g. Uniregistry or Afternic/Godaddy.
I sometimes handle the initial inquiry before deciding to move it on to a salesperson or broker, that’s because I don’t want to waste everyones time, and also because I feel my initial interaction may add value to the negotiation. But I don’t recommend that unless you have a few good years under your belt.
So in a nutshell, I broadly agree with Rick’s advice to shut one’s trap and send it to a damn broker.