How To Negotiate A Sale

When you sell domain names you want to be sure the timing is right. You also want to be sure you are getting the price you deserve for your domain names or it may not be worth it to you to sell it. Following these two guidelines will ensure you are successful with your domaining business.

One factor to consider in a sale is getting an appraisal on your domains so you know the approximate value of each of them. This way, when someone makes an offer or when you offer your domain for sale you know the price you should ask for. An appraisal is very important because if you do not get one then you might be cutting yourself short of money when you do sell your domains.

You also should pay attention to the current market and the most popular and valued domains. If you own domain names under these conditions then it might be a good time to sell them. However, if you own a few domain names in a brand new market that is new then you might want to hold off for a bit until that particular market is at its peak. Paying close attention to the market will give you a good idea when to sell and when to hold onto your domain names. Selling your domains when the time is right will make you the most money for your domains and the biggest return on your investment.

You also need to negotiate the prices of your domains. If you are asking a certain amount for a popular domain name and a buyer comes to you with a counteroffer then you need to assess their budget. Offer the buyer a financing option for the domain name or another way to make the purchase. If you are selling a domain name in a hot market and you have many offers then you won’t need to do much negotiating and you will probably get what you are asking for.

Negotiating is important because in most cases the buyer’s first offer is not the highest price they are willing to pay. Don’t settle for their first offer. In addition, when you have an appraisal on your domain it also will help you justify your price reasoning. If you paid a certain amount of money for the domain and you are barely making a profit, this too will help you with your price reasoning when you are negotiating with another buyer.

Where To Sell Domain Names

If you are a professional domainer, then you will need to have a plan for selling your domains. There are several ways you can go about selling your domain names but the best two methods are by listing your domains in the aftermarket and creating a list of potential buyers.

Listing Your Domains At Aftermarket

One of the best ways to list your domain names for sale is to post your domain names on aftermarket sites such as Afternic and Sedo. Another way to list your domains is to visit public forums like DNForum, Domain State, and Name Pros.

Potential Buyers

Similar Names

Spend time creating lists of potential buyers of your domains. You can do this by finding people who have a less attractive domain name, which is similar to the one you own. You can then offer this person your domain at a price and see if they are interested. For example, if you own credit-cards.com and you find the domain cardsforcredit.com then they may prefer to acquire your domain instead of using theirs.

Advertisers

Another way to find potential buyers is to create a list of advertisers who advertise on keywords associated with the domain names you own. You can do this by typing in keywords in search engines like Google and Yahoo.

Forums

One technique that most domainers use to sell their portfolio is finding buyers through domain name industry forums. Most forums will have an area set aside for domain sales, so post a message up!

The other technique used to find buyers is by searching Google or Yahoo using the forum name and the type of domain you are selling. eg: “dnforum.com gambling” without the quotes.

Conferences

Industry conferences can also be a great way of contacting buyers directly. Although many conferences have auction components to them, its important to note that the submitted domains are usually heavily reviewed beforehand. Most conferences want “premium names” in order to push up the final value of the domains sold – therefore indicating the success of the conference.

Create Your Own Site

Another effective method is creating a small website that lists your domain portfolio and its status. Each name should be listed as ‘for sale’ with a purchase price and your contact information. You could also include a separate page with statistics relating to each domain and perform some basic SEO (search engine optimisation) to ensure its found in the major search engines.

How To Sell A Domain Name

Apart from generating income via parking, considerable money can be made by selling domain names.

Selling a domain name may be your initial strategy… or may be a way to make money from a domain name that is no longer generating sufficient income from parking. Whatever the case, your first step in selling a domain is to offer it for sale. Many domainers list domains for sale on auction sites, however you can also post them on forums or quietly contact a professional buyer (for example, a professional domainer or a company that may wish to commercialize the domain).

If you plan to post a domain for sale on a forum such as DNForum you should, at least, include some basic information about the domain, such as:

* Full domain name (including its extension);

* Number of unique visitors over a period of time. This should be, at a minimum, the number of unique visitors for one month, and at best, the number of unique visitors over 3‐4 months; and

* Offer price.

I’ve found that if you provide more information, you’re more likely to get a higher price for the domain. By providing more information, people know you’re serious about selling the domain and are likely to take greater interest. So here are some of the extra items I suggest you include when offering your domain for sale:

1. The origin of the traffic by country. For example, 95% from the United States.

2. A breakdown of incoming links by search engine.

3. The actual links to any directories that list the domain name.

4. The age of the domain name – when was it registered?

5. A list of alternative uses of the domain name. For example: The domain name can be used as a movie title such as <insert title> The domain name is also an abbreviation for: <insert companies or things with the abbreviation>

6. If it’s a “typo domain” clearly explain what the typographical error is.

7. If the domain could possibly violate a trade mark, clearly state that. (This may protect you from possible legal action).

8. If the domain name is in a foreign language, explain what the word(s) mean.

9. If the domain name is parked, specify where it is parked and provide links to more information about the parking company.

10. If the domain name is parked and earning revenue, then post how much, what the currency is (e.g. USD or Euro) and over what time period.

11. The current registrar. If it’s one where you can push the domain name to someone else, then say so in the listing.

One final point – I don’t recommend including a “buy it now” price as this puts a ceiling on how much people will bid. After all, someone might come along and pay more. Earlier this year I planned to sell a domain name and invited expressions of interest on a forum. I thought I’d get two, maybe low 3 digits for this particular domain… but I actually got a 4‐figure offer!