Domain negotiations : Don’t compete against yourself

Quite often, domain inquiries kick-start the negotiation process, when the price quoted isn’t within the buyer’s budget.

One thing to remember, after that initial price quote, is this:

Do not compete against your own quote.

The practice is common: the other party indicates the price quoted for a domain isn’t what they had in mind. They proceed asking you to lower it, sometimes to a lower figure class, e.g. from five to four figures, or lower.

That’s not how negotiations work, however.

By issuing a secondary quote, you are competing against your own self.

Don’t do that, or the process is going to be repeated as if it’s a Dutch auction.

The ball is in the other party’s court, and their offer will determine the outcome of the negotiation.

If they counter too low, game is over.

In a nutshell: if you must quote a price first, keep in mind that the other party might not like it – they still have to indicate their ability, or lack thereof, to buy the domain at a price that you determine.

Comments

  1. I think this one boils down to patience, desperation, and fear. Many times, a seller snaps back pretty fast (Within 24 to 48 hours) with a counter/new number if a buyer doesn’t like the price because they need money fast, don’t want to wait, or are scared the deal will fall through if they don’t comply.

  2. Eric – Imagine an art gallery running behind patrons to sell a Monet 😀 Or a Realtor who received an “expensive house, can it be lowered” response dropping the price on the spot.

    I’m open to negotiations, and that requires two numbers – one from me, one from the buyer.

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