How negotiation attitudes change

[Bailey]

I'm always Pleased when a Domain name enquiry comes out of the Blue (Not listed for sale. But, a Short Sweet Catchy .com) As arrived yesterday.

That Little Sweet Opening introduction,(via Gmail) with a little tickle of appeal in it's message. Then my reply Not rude but a little more business like in its reply.

10 minutes later - WELL HOW MUCH THEN ??? ( What happened) to all that nicety.

Felt like saying - Hey Mate, the three recent TESS Trade Mark Registrations and the (hidden ownership) Grab of The .NET the day before yesterday - Just made your Sweet opening email a little less believable - Savvy

 

[Bailey]

Sorry about that - deletions done and conversation opened

 

[bonusmedia]

This is exactly why buyers feel the need to hide/lie - if a domainer sees a whale they get the harpoon out!

 

[RobM]

The flipside could be that people buying domains expect them for next to nothing. I once had a client drop $60,000 in 4 days on worthless press releases yet wanted to buy the .com (same name as their business) and only allocated a $1000 budget. The .com was a one word city and was worth $100k+ in my opinion. The owner was asking three times that but you can see the flawed logic. He actually thought $1000 was being more than generous as you could register one at the time for $9 lol. It seems far too many people don't consider a domain as important to their business.

 

[bonusmedia]

Yes that's flawed logic, but the 'how much value for your business' is also flawed.
My business couldn't exist without broadband, for example, but that doesn't mean I want to pay $100k a year for it.
Of course uneducated buyers are going to feel aggrieved - from their perspective you are charging a 1000% markup for doing sweet FA

 

[RobM]

Well the good thing about uneducated buyers is you don't have to sell to them. I suppose I should walk into every unused office building and demand they sell it to me for the price it cost to build years ago. Your example is totally different anyway - you are talking about something you use along with millions of other people. If someone with a multimiliion pound company, offices, hundreds of staff won't pay more than 1k for a domain it says it all. Domaining is the only industry where speculators are berated - it seems widely accepted in other industries even lauded.

 

[bonusmedia]

The point of my example is that the value something has for a business is not necessarily a good indicator of what they should pay for it.

I'm not defending clueless buyers - just trying to see their point of view.
If you spend $100k on an office building then sell it for $150k, you're a shrewd investor who took a risk that paid off.
If you spend $10 on a domain and then sell it for $10,000, you're a chancer who struck lucky (I did that once and I'm not going to pretend any different...

I think the perception is partly there because domains have a very low cost at the point of entry and very little actual work involved.

Speculation does tend to be looked down on when it involves holding an unused /'wasted' asset.

I'm also a speculator and I do sympathize with both sides, but the man in the street is always going to favour 'hard-working small businesses' over 'cybersquatters'.

 

[markb]

It's a bit like private car registration numbers, they where very cheap initially, but the majority of people are happy to pay thousands of pounds or one just for vanity purposes. Seems most people get private plates, but don't really understand the value in domains. Hopefully this will change in the future.

 

[Bailey]

Blimey, I'd love to see some good domains available to register at $10. Most of us took the RISK years ago when the domain speculation business was really an unknown - I remember trying to convince my Brothers to come in with me And they thought I was totally Mad - I certainly don't recall selling a domain that was less than 8 years on my books (Mostly a lot longer) then there's the Aptitude for what may or May Not come into play. Not to mention the bad decisions that also need recognising and losses cut. It's certainly closer to the Property game than you seem to acknowledge BonusMedia.

And even more FairPlay to those that paid the original $70 (Yearly Fixed price) a POP back in the 90's - Them Guys really were the Risk takers. Yep when the internet was just a "Thingy" for Nerds

 

[bonusmedia]

I registered my first domain in 98 - wish I'd had half a clue back then!
Anyway, point is you can't blame them for trying.
If you were in charge of buying abc.xyz you wouldn't open with 'Google wants to buy your domain', would you?

 

[Bailey]

Not sure where the "Google wants to buy your Domain" comes from unless we are talking about someone who thought it a good-opener for some reason.

And hey lets not forget the negotiating and pricing Skills that actually require more Business Acumen than picking up domains in the first place.

I think most Savvy domainers do preliminary background *checks, And For a Business not to be aware of that when making a False-Pretence in their approach - ends up Biting them on the BUM.

* Current/Recent Registrations (and usage)
* term recognition and Growth
* TESS Status
* email address (history - OR otherwise)

What does it all take 10 minutes at Most

At the end off the day the best and fastest negotiations I've been involved in - Are the Honest approaches with even the reasoning behind the wish to acquire - Certainly Not the "I want it for my Youngest daughter as it's her nickname at School etc" - She loves that name Eyes and would love to have eyes.com - Please make Her Day

 

[bonusmedia]

Google bought abc.xyz. You can be damn sure they didn't tell the seller who they were.

But they probably didn't go with the 'daughter's nickname' approach either.
Can't imagine that's ever worked...

Now you've got me wondering if it's worth naming children after high volume keywords

 

[Bailey]

I've actually felt a compulsion to be as accommodating as Possible, when I've had that occasional real-open and honest approach (using their business email as well) Probably happened half-a-dozen times, Maybe it's that all-round feel good factor that adds to any monetary gain. Yep I've had the Daughter stuff, & son's school project to mention just two.

 

[bonusmedia]

I think they might have done in actual fact. I've forgotten what Mr Negari actually told me when I asked him. Might have been under NDA.

"I knew something big was happening with the domain name, but didn’t know the identity of the party" - Daniel Negari

Obviously he made beaucoup bucks off the enhancement in perceived value of the extension

On reflection it's a terrible example

Anyway, negotiation 101 - do not reveal that you have a multi billion dollar warchest

 

[Adam H]

But they probably didn't go with the 'daughter's nickname' approach either.
Can't imagine that's ever worked...

ha, I wondered why when i used that line last year it was met with a sarcastic reply and an exaggerated value..........that time however it was a genuine reason ( shortened version of my daughters name ) Never dawned on me some would use it as an excuse haha. I settled for 2 domains with slightly different spelling in the end for 10% of the price.

 

[bonusmedia]

Shame, Mesothalioma is such a lovely name too