Problems selling domain to end-user

[Alien]

Hi everyone,

I recently contacted a few end users to sell a domain and hope you guys can give me the benefit of your advice and experience.

One end-user quite interested and we started negotiating early Sept with rapid e-mails back and forth, finally decide £300 to buy/sell and I send them an invoice to reflect this.

Hear nothing/no payment for 7/8 days, telephone them (when finally got through!) and agree to drop price again to £200 (they try and push me to £150 etc, I remind them that they'd already agreed £300 but for a quick sale I would agree in this circumstance!). Sent revised invoice 10th Sept, to date no payment or any contact.

I think they're time wasting or hoping I'll drop the price again, it's all very odd - why waste my time if they don't intend to proceed with a sale?

Now, given I've sent them two invoices now, one for £300 and then the revised one for £200 with all my contact details on, should I now e-mail and say you've got 24 hours to pay or the agreement/invoices are cancelled? Or just cut my losses, ignore them and re-sell the domain somewhere else?

If I sell the domain name and don't contact the end-user and they ever get back to me to proceed or even pay (seems unlikely as I get the feeling they are completing time wasting), have I broken a sales agreement?

Also in future I think I need to put payment terms in my invoices (e.g. payment within 36/48 hours, etc?).

Thanks all.

 

[davedevelopment]

I'd email them, saying if you don't receive payment in the next three days for £200, the sale is annulled.

I put a due date in my invoices, currently a month from the invoice date, but I think I need to firm this up a little with proper payment terms.

I've only sold two domains to end users, still waiting for payment for the second. As it was only £40, I figured I'd push the transfer in good faith and wait for payment. Three reminders later and 'that should have been dealt with, I'll look into it'. Yeah right.

 

[fish]

When you are speaking with them and they verbally agree to buy you should then focus on the payment side of things. Often you will find this will sort the genuine buyer from the ones that just want to dick you around.

suggest they pay by paypal right now/today ("and sir, I can complete the transfer to ensure you have use of the domain right away")

If you accept ccards take their card# (as above)

Bacs transfer is easy to do (if they bank online) and also is a quick method

next would be payment by cheque (though you risk losing sale since they have more time to think about it and back off)

you might also want to suggest you have other offers on the domain so if they (your buyer) wants to secure the domain for themselves they should use paypal or bacs immediately.

Don't wait for them to respond to your invoice (& no it is not binding)

all imo

Fish

 

[Alien]

Thanks dave and fish, great insights/info.

I think I'll send this today via e-mail:

Dear ****,

Subsequent to our previous discussions and sales agreement for the domain name ******.co.uk, I am writing to resend my revised invoice and e-mail below of 10th September, 2009.

Unfortunately if payment is not received by close of business today (e.g. 18.09.09, UK GMT time of 17.00) I will have no alternative but to sell the domain to other interested parties. Our sales agreement and my previously/currently sent invoices will then be void and annulled.

I look forward to hearing back from you. Please let me know if you have any questions.

Does that sound OK? I know I'm only giving by 5pm today, but I'd like to wrap this up and they've had long enough already?!

Thanks.

 

[grantw]

I'd have told them to stick it after they went back on the initially agreed price!

Grant

 

[fish]

Thanks dave and fish, great insights/info.

I think I'll send this today via e-mail:



Does that sound OK? I know I'm only giving by 5pm today, but I'd like to wrap this up and they've had long enough already?!

Thanks.

In the 1st instance don't email, call them!

If no ansa then resort to email

 

[retired_member16]

I would have increased the price to £400 not drop it to £200 !

 

[Edwin]

You should always put a cutoff date on the invoice (which they should counter-sign to show that they've agreed with it)

For example: "This invoice is payable within 7 days, otherwise this transaction will automatically be voided and the domain placed back on the open market."

 

[Paullas]

i usually get end users to fax me back the invoice signed and give them 7 days. then if the try and get out of it i have there signiture on the sale.

 

[fish]

You should always put a cutoff date on the invoice (which they should counter-sign to show that they've agreed with it)

For example: "This invoice is payable within 7 days, otherwise this transaction will automatically be voided and the domain placed back on the open market."

i usually get end users to fax me back the invoice signed and give them 7 days. then if the try and get out of it i have there signiture on the sale.

I would expect to receive an invoice for something I have purchased, both the above is more akin to a contract.

If you want to hold a buyer to an agreement to to buy something then a document setting out the terms of the purchase should be signed by both parties. Within this (amongst others) payment details can be stipulated. Should the buyer default on payment and you choose to go down the route of court action to recover any losses then you will be well prepared ...

But what are we talking about here? non payment for a £50 / £500 / £5000 domain? Even if you have a sales contract signed by the buyer and he/she defaults you will have to spend both time and money to recover what rightfully should be yours. At the end of the day it may not even be worth the hassle.

I have 1st hand experience of 5 figure, legally binding signed deals going south and never to be seen again ( not in domain names but the principle is the same)

My advice would be to 'trust the buyer' but if no payment within an agreed 2 - 5 working days then start to question his/her ability to go through with the deal.

Just my thoughts

 

[Alien]

Thanks for the comments everyone.

Some very useful pointers, ideas and strategies there for future sales which I'll incorporate in.