When negotiating the price of a domain name with a prospective buyer, I occasionally encounter resistance citing the size or reach of the prospect’s business. The buyer can’t afford to spend the asking price for a domain name because his or her company is small or not yet created. This resistance is understandable, but they need to understand why the domain name is more expensive than they can afford.
I am not a huge proponent of educating buyers about the value proposition of a domain name. If they have inquired about a particular domain name, they likely understand why the name has value without having to explain. However, it can be helpful to explain why the domain name is worth its asking price.
Let’s say a local dog walker wants to buy DogWalker.com from my company (it’s developed and not for sale, so this is just an example) for his website. This local dog walking service probably wouldn’t get much of a return if it paid the full value for the domain name. The buyer thinks the domain name is way too expensive for his small business, but he may not understand the potential reach of the domain name to someone with bigger aspirations or a bigger business.
Enlightening a prospective buyer about the potential a domain name has likely won’t get a deal done. I can think of a few examples of people getting a better understanding of why I priced a domain name at a certain level when they didn’t understand my perspective. I can’t really think of any deals that closed as a result. That said, educating someone about the potential of a domain name may help them think bigger, and perhaps their budget will expand as they learn more about the domain name’s potential.
At the end of the day, explaining your position can help keep a negotiation cordial and it may result in a deal. At worse, it is just a bit of a time suck.