Monday, May 16, 2022

How To Negotiate A Domain Name Price

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Grit Brokerage The Best If You Regularly Buy Premium Domains

What is a Premium Domain?

Grit Brokerage is one of the recognized players in the space. The company has negotiated big-name deals and helped brands secure their position online.

I recommend them to businesses that are in the market for premium domains frequently. It may not be something you need all the time, but its also not enough for you to get a single solid domain for your company and be done with it.

If you have to work domain acquisition into your overall brand and marketing strategy, Grit Brokerage is an ideal broker to work with. Its like having a domain expert in your office, except theyre not on the full-time payroll.

The company can walk you through the ins and outs of upgrading to a better domain in your industry, or branching out and capitalizing on a multiple domain SEO strategy.

Grit.org is the parent company of Grit Brokerage. The organization is focused on empowering people to build better companies and communities. If you work with Grit, its brokers will invest their time in helping you grow by acquiring the right domains at a fair price.

This is a challenge, even for companies with deep pockets and bright ideas. It took Elon Musk more than a decade and $11 million to get tesla.com. Until then, the company had settled for teslamotors.com and constantly took a hit in search rankings.

Not everyones battle to get the top domain is so brutal, but its never easy these days.

Moving Forward Based On Value

When you ask questions or research other properties owned by the buyer, you can identify what is important to them. This approach helps significantly during the negotiation or when you run into a roadblock. You have to ask how/what/why questions to diffuse any roadblocks and turn them around to increase the value to the buyer. This process is what salespeople call objection handling.

DomainerPro.com had a good example in his How to Negotiate Domain Name Prices post.

Countering Bluffs: I would add that you should learn to recognize and counter the most common bluffs that buyers use. If a buyer says, âI canât go any higher,â donât give in, and donât call him a liar either. Instead counter with a reasoned argument like, âI understand what youâre saying, but this domain name will ultimately save you money by bringing you targeted leads. The extra money is worth it.â

Types Of Domain Owners

before diving into specific advice for buying a premium domain, lets put all our seller personas on the table. domains are owned by 3 types of folks:

  • squatters
  • has-beens
  • squatters

    this is the worst persona from which to purchase a domain name. many of todays premium, unused websites are still owned by people who bought them in the 90s, thinking one day ill be rich!

    these menaces have simultaneously zero talent and unlimited leverage, a dangerous position. insurance.com, for example, cost just $15 per year to maintain yet sold for $35.6 million.

    the challenge with domain squatters is theyre obsessed about valuations, so no number is enough, and its nearly impossible to convince them *you* are the offer theyve been waiting for.

    holdouts

    slightly less obnoxious than squatters, a holdout is someone who intends to use a domain, but doesnt have a specific project for it at the moment.

    theyre less likely to play games with buyers but also less interested in offers at all.

    if they do open negotiations, sometimes holdouts will ask that you pay extra for their current pre-work or let them retain a % of the domain post-transfer, to keep their dream alive.

    has-beens

    potentially the best seller persona to encounter on your domain buying journey, has-beens are folks who previously used the domain, but have since shut down the product, rebranded, been acquired, etc.

    Also Check: How Much Should I Offer For A Domain Name

    S To Negotiating For A Domain Name

    Let’s say you are the owner of a business, Sandwiches Unlimited. You are an established business and you’ve been operating under Sandwiches.net for years. As your company has grown, you realize that you should buy the “Sandwiches.com” top level domain name, as well. Why would you do this?

    Your domain name is your home address on the internet. If someone is looking for you online, they can always do a Google search to find you if they can’t remember your exact URL. However, you want to reduce any friction in the process when it comes to your customers and prospects going directly to your website.

    Another reason you might want to buy a new domain is to protect your brand. If someone else owns Sandwiches.com and your users accidentally land on their website to find $5 sandwich makers , you’ve just confused your brand.

    In what other situations might you need to negotiate for a domain name? Perhaps you are a professional speaker and you want to use your name as your website, but it’s already taken.

    Another reason might be that you have a really long company name and you want something shorter, snappier, and easier to remember. But the domain you like is already taken.

    At this point, you have a few options before you need to start negotiations with the domain owner.

    Do The Deal Through A Seasoned Broker

    Domain Price Negotiation

    I know youre a huge DIY fan you saved a boatload by replastering your pool all by yourself. But its always a good idea to buy domains through a domain broker that is established in the industry and has existing relationships with major domain investors is a good idea. A good broker will be able to get your deal closed for far less than the standard 10-15% brokerage commission rate.

    You May Like: Where To Register Domain Name For Free

    Evaluate The Domain Name Closely Prior To Buying

    Before committing your hard-earned money to purchasing the domain name, ensure that you ask a few important questions regarding the name. In case the domain name has a particular website thats associated with it, this automatically raises the value. Its also important to know about the websites model, its liabilities, and profitability at the moment as well as the value and assets of that industry.

    Another factor that may significantly add the value of the domain is the social media. You will be amazed to learn that in the United States, for every new 6 million new business like to buy those domain names that have social media accounts that do match. That means that if your domain name is newcoupon.net you may find that the name has a handle on or that is named newcoupon.net. For such a domain that comes with a or handle, you will undoubtedly have more value on your site.

    Want An Unfair Advantage Over Competitors Buy A Taken Domain

    Buying a taken domain seems daunting but its easy if you follow a proven process.

    It all boils down to thorough research, patience, and tact.

    With the best possible domain name from the beginning, you gain a headstart on your competitors. You fuel your companys online growth and reap awesome SEO benefits by simply doing the hard work upfront.

    Recommended Reading: Can You Change A Domain Name On WordPress

    Tip #: How To Approach The Domain Owner

    Tell the owner youre interested in buying their domain name. Ask if its for sale and the asking price. Dont call the domain name owner a squatter or make a negative comment about the fact that they arent using the domain name for anything. This will start your negotiation off on the wrong foot.You dont need to divulge information about who you are or why you want the domain, but its possible the domain owner will ask. Reveal what you feel comfortable telling them, but keep in mind that if the owner thinks you have lots of money they might ask for a higher price. If you do have lots of money, expect the domain owner to figure that out by looking you up on LinkedIn. Consider having a friend send the email on your behalf if thats the case.While its up to you what you reveal, you should avoid lying. Many domain owners are used to receiving emails that claim, Im working on a school project and would like to use this domain for the project. Nobody falls for this one! Ideally, get the domain owner to suggest a price before you do. You never know when the owner has a lower price in mind than you do.

    Research The Value Of The Domain You Want

    How To Buy & Negotiate A Domain Purchase

    Before you buy a domain, do your homework first.

    Find out how much its worth.

    Thats what all pros do otherwise youll waste time and resources only to discover you cant afford it. Imagine the sinking feeling youll get afterwards and that after doing a lot of legwork. Or, you could buy it but find out later you could have got it for 20x less. Youll feel youve been taken for a ride.

    But how do you get to know the value of the domain you are chasing?

    Easy.

    Use free Domain Appraisal tools like this one below from GoDaddy. Simply insert the domain name and click GoValue.

    Wait for a few seconds while the algorithm works its magic

    There are many similar tools all over the internet. You can also check fresh sales records of domains similar to the one you want.

    Knowing the value of the domain you want helps you:

  • Plan better.
  • Budget better.
  • Negotiate better.
  • Above all, it helps you save time and precious resources if you think the prospective price is beyond your budget. You give up the chase before investing in the project further.

    Also Check: How To Buy A Domain Already Taken

    Why $10000 For A Domain Name Is Still Cheap

    Domain names are now an integral part of any business. Whether the use is primarily for email, a company website, or part of a marketing campaign anyone starting a business must secure a domain name.

    The difference between a domain name and other marketing expenses however is you are acquiring a presence which help future customers define you, not leasing one.

    Owning a premium domain has become expensive with the average price of a domain name hovering around anywhere between $5,000 and $20,000 however how expensive is this?

    If one were to compare the price of almost anything compared to its original cost could we not classify everything as expensive. A $3 bottled water costs how much to produce? Or a $300 pair of designer sunglasses which probably cost less than a mocha to manufacture?

    Somebody has your name and they are squatting on it?

    Unless you have a trademark on the domain or someone is intentionally capitalizing on monetizing a typo of your trademark no one really is a squatter in the domain name industry. Whats even more interesting is for those people who complain that somebody has their name, but lack a trademark or other legal form of similar use, is almost the equivalent to saying that your grandmother owns my dream home except now they are inferring that your grandmother is this evil natured women and not a smart investor. Real estate ownership is acceptable by public opinion and so should be domain name investing.

    How much is a domain name worth?

    What I Looked At To Find The Best Domain Brokers

    There are a few basic ground rules for choosing domain brokers because there is literally zero certification required.

    Anyone can say they are a domain broker, but you should only consider ones that:

    • Have been around for a few years, at least
    • Maintain a spotless reputation
    • Use a recognized payment system, such as PayPal or Escrow.com
    • Handle all of the negotiations confidentially

    If you are going to hire a broker, this is the bare minimum. Theres a lot of money changing hands online for domain names. The market attracts scammers you definitely want to avoid.

    All my recommendations for domain brokers have you covered. They are well-known and respected in the industry, and they will be able to steer you clear of the people who arent.

    Now, theres a range of broker services out there. You can get help with the nuts and bolts of the deal, so youre not drawing up purchase agreements or tracking down a domain owner.

    Some domain brokers offer more of a consulting relationship. They help you with domain marketing, acquisitions, and strategy to establish and protect your brand over the long term.

    Theres a ton to know about domains and its always changing. Getting a good domain broker means you dont have to worry about any of it.

    You really only have to focus on a few things in order to connect with the right one.

    Read Also: What Is The Io Domain Used For

    Buy A Top Level Domain Instead

    Lets start with the bad news:

    All the best domain names in any industry or niche are already taken. Moreso those with the much-coveted .com ending.

    The good news?

    You can still get a name thats close to what you want.

    How?

    The good part is all top-tier domain selling sites do the heavy lifting for you. Whenever you search for a domain name, they also give you suggestions of available TLDs as part of the search results.

    Look at this as an example.

    The circled extensions are available TLDs related to the original search. Plus, you know at once how much they cost. Some search results also show you variations that are already taken but are up for sale.

    Here is one such result.

    As you can see, the suggested TLDs are on the left and their status is shown on the right i.e. price or open to offer.

    Common TLDs extensions include .co, .biz, .net, .org, and .io.

    Thats not all. There are other options you can explore.

    Lets say you are looking for marketing.com, the case study we have been using throughout this article. You can narrow down your search to:

    • Region e.g. marketing.asia
    • City e.g. marketing.toronto
    • Niche e.g. marketing.software

    Get the sense? Keep trying until you come up with a winning combination that suits your context.

    Add A Sense Of Urgency To The Proceedings

    How to Negotiate When Buying or Selling Domain Names

    You can do this using any one of several ploys: My boss has asked me to obtain a domain name of our new site within the next ten days, or, I need to decide how to spend my $2,500 budget within the next seven days, and Im looking at several domain names, including yours.

    Out of fear that the domain name owner might otherwise lose the deal, a prospective seller might blink and agree to a lower price than he might ultimately want if he thinks that you have a fast approaching deadline.

    You usually get one chance to make an offer before the domain name owner sends your email to trash, so make it count. Grab the sellers attention, and make a reasonable offer so that he will be willing to negotiate with you.

    Don’t Miss: Is Godaddy A Good Place To Buy A Domain

    Reach Out To The Owner And Negotiate

    Once youve done all the groundwork, its time to approach the owner to thrash out the details of the potential sale.

    Here are 7 tips for negotiating a domain name purchase.

  • Be patient- if you are in a hurry to wrap up a deal you may end up getting burned. Some negotiations take time so be willing to wait it out.
  • Be fair- while you want to get the best deal ever, make a good offer otherwise negotiations will be drawn out if you start your bid too low. Worse, the buyer might dismiss you because they think you are not serious .
  • Be wise- dont show your hand too early- let the seller name their price first, their asking price may be lower than what you are expecting.
  • Be reasonable- yes, a good domain is great for business but dont obsess over it- move on if you cant get it because its not everything.
  • Be bold- dont be scared to pay good money for an excellent domain that can reap rich rewards for your business.
  • Be professional- let an escrow service handle the transfer in a safe environment that inspires confidence.
  • Be far-seeing- decide your walk-away price beforehand and abandon the deal once negotiations go way above it.
  • Use these tips to land your dream domain. Cant get the exact name you want? All is not lost. You can go for the next best thing.

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