The negotiation phase of buying a premium domain name is one of the most challenging steps – and things can easily go wrong if you’re new to the game. Seasoned negotiator Joe Uddeme shares his top tips.
Picture the scene: the owner of a premium domain you desperately want to buy has said they will sell, and they’re asking you for your starting bid.
At what price point do you enter? If you low-ball them, will they write you off as a time-waster? If you go in high, will you be offering far more than they anticipated?
This is where experience in negotiation and a deep knowledge of the premium domain market come in. It’s just a small part of the expertise that a seasoned domain broker brings to the table.
To the uninitiated, negotiating for a domain name can be a daunting task. Whether you’re a startup founder, a small business owner, or a digital marketing manager, mastering the art of domain name negotiation is essential.
This article provides five scripts that can help you navigate these negotiations smoothly and successfully.
Before diving into the scripts, we should discuss why domain name negotiation is important, so we’ll look at the impact of a great domain on branding, SEO and visibility first.
Key takeaways
- Why a great domain name leaves a powerful first impression
- Strategic domains can help with SEO
- It’s all too easy to overspend!
- Preparation is key to great negotiation
- Use market data to justify your offer
A premium domain’s impact on branding
Your domain name is often the first interaction a customer has with your brand. Which makes it hugely important! It serves as your digital handshake, and sets the tone for your brand’s identity/perception.
A well-chosen domain name can evoke trust, professionalism, and relevance – meaning customers can easily remember and find you online. On the flip side, a poorly chosen or generic domain can make your brand less memorable and harder to find. And that can be bad for business.
Some companies – such as Etsy and Trivago – prove that you can create a new word when branding, and that this can work well as a URL. But it’s easy to get it wrong, and for every success story there’s a made-up word that flopped.
SEO and visibility
A strategic domain name can also enhance your search engine optimization (SEO) efforts. Keywords within your domain can improve search engine rankings, and that makes it a whole lot easier for potential customers to find you through organic search.
This is particularly important in competitive industries where every advantage counts.
Financial considerations
The perfect domain can significantly boost your brand’s success – but acquiring it comes with a price. You should always fully investigate the likely costs before you embark on negotiations. Remember: great domain names can cost hundreds of thousands.
The art of negotiation
Negotiation is part skill, part art form. You’ll need lots preparation, an understanding of the other party’s needs – and the ability to know when to walk away. When negotiating, it’s important to balance assertiveness with flexibility to achieve a win-win situation. Here are some steps to take:
Preparation and research
Preparation is key. Research the domain’s history, understand its market value, and assess how it fits into your brand strategy. Knowing these details allows you to enter negotiations from an informed standpoint – and that will boost your confidence and likelihood of success.
Understanding the other party
It might seem counterintuitive, but the goal isn’t only to get what you want; you’ve got to consider what the seller needs. That means listening actively, asking the right questions, and gauging their motivations. Do they want a quick sale, or do they value the domain as a long-term investment? When you have this information to hand, it can help you craft offers that appeal to both parties.
Timing and patience
Timing is important. Approaching a seller during a downturn or when they might be looking to liquidate assets could yield better deals than when trying to buy in the middle of a bull market. Patience is a virtue too. Being too eager can signal desperation – which may drive up the price. A calm, composed approach is what you are aiming for.
5 negotiation scripts to try
These five scripts are ‘beginner’ scripts that can be used as email templates when trying to secure a premium domain name.
Note that they’re not something an experienced domain name brokerage would use.
When you’ve brokered deals worth almost $200 million, as NameExperts have, your negotiator approaches every new deal ready for anything, adapting to the circumstances as needed and relying on lessons learned from past successes to boost your chances of securing your dream name at the right price.
But if you are determined to go it alone, these are a solid way to start.
Script 1: The initial inquiry
When you first reach out to a domain owner, you have to come across as approachable and positive. Our first script helps you make a professional and friendly initial contact.
Sample script:
Hello [Owner’s Name],
I hope this message finds you well. My name is [Your Name], and I am interested in acquiring the domain [Domain Name]. I believe this domain aligns well with our brand’s vision and would love to explore the possibility of purchasing it from you. Could you please let me know if it is available for sale and, if so, your asking price?
Thank you for your time and consideration.
Best regards,
[Your Name]
The theory behind this introduction
First impressions set the stage for the entire negotiation process. A well-crafted introduction should be polite, concise, and respectful. Remember to show genuine interest as it indicates to the seller that you value their asset – and that can make them more receptive to your offer.
Expressing genuine interest
It’s not just about what you say, but how you say it. Showing genuine interest in the domain conveys enthusiasm and seriousness. If you’re able to articulate how the domain aligns with your brand’s vision, it can also help the seller see the potential value in selling it to you. But don’t overdo it. You don’t want them to feel they alone can answer your domain name needs!
Requesting information upfront
When you request the asking price upfront, you create a clear pathway for the ‘what next?’. Their response allows you to quickly assess whether the domain fits within your budget – saving time for both parties. It also signals to the seller that you’re serious about the purchase and marks you out as a credible buyer.
Script 2: Negotiating the price
Once you’ve received a response, it’s time to negotiate.
Sample script:
Hi [Owner’s Name],
Thank you for getting back to me. I appreciate your offer of [Original Asking Price] for the domain [Domain Name]. After evaluating our budget, we are prepared to offer [Counteroffer] for the domain. We believe this is a fair price considering the current market conditions and the potential value it adds to our brand.
We are eager to proceed and hope to reach a mutually beneficial agreement. Please let me know your thoughts.
Best regards,
[Your Name]
The theory behind this counteroffer
A counteroffer demonstrates that you’re serious about the negotiation process – and that you know what to do next. It also shows that you’ve done your homework and are willing to find a way to arrive at a fair price that works for everyone. A well-reasoned counteroffer can also set the tone for prolonged, constructive negotiation that may follow.
Justifying your offer
Backing up your counteroffer with market data adds credibility to your proposal. By showing that your offer is based on thorough research and realistic assessments, you can create a stronger case for the seller to consider what you’ve put forward.
Maintaining enthusiasm
Maintaining a positive and enthusiastic tone is crucial – even when things get tricky. Staying professional keeps the conversation constructive and shows the seller that you’re genuinely interested in reaching an agreement – and not just out to get the lowest possible price. As a result, the seller is more motivated to work towards a price that works for both parties.
Script 3: Highlighting shared benefits
When negotiations hit a roadblock, it’s a good idea to highlight how the deal benefits both parties.
Sample script:
Hello [Owner’s Name],
Thank you for your patience as we continue our discussions. I’d like to reiterate how acquiring [Domain Name] is a strategic move for our company, and I believe this transaction will also benefit you.
By agreeing to our proposed offer of [Counter Offer], you will gain a significant return on your original investment. Additionally, this sale will allow us to amplify the domain’s potential, reflecting positively on its legacy.
I look forward to your favorable response.
Best regards,
[Your Name]
The theory behind the ‘shared benefits’ approach
Emphasizing mutual gains
Highlighting mutual benefits can switch up a negotiation from adversarial to collaborative. By focusing on how both parties stand to gain, you create a win-win scenario that makes the seller more inclined to consider your offer seriously and not just ghost you.
Acknowledging the domain’s value
This demonstrates respect for the seller’s asset. It also reassures them that you understand its worth, which reinforces your credibility as a buyer.
Painting a positive future
By discussing the potential future success of the domain, you can appeal to the seller’s sense of legacy – but once again, don’t overdo it. Showing how the domain will thrive under your ownership can be a compelling argument, if handled correctly.
Script 4: Overcoming stalemates
If negotiations are going nowhere, take a deep breath and remember the need to keep communication open and positive.
Sample script:
Hi [Owner’s Name],
I understand that agreeing on a price for [Domain Name] can be challenging, and I appreciate your efforts in these negotiations. To move forward, I am open to discussing alternative terms, such as installment payments or potential future collaboration.
Our primary goal is to reach a satisfactory outcome for both parties, and I am eager to find a solution that works for everyone involved. Please let me know if there are any flexible options we can consider.
Thank you for your continued cooperation.
Best regards,
[Your Name]
The theory behind this approach
Exploring alternative solutions
When you hit a roadblock, the mention of alternative solutions like payment plans or future collaborations may open new doors. Suggesting things like this also demonstrates your willingness to be flexible and creative – and that can help break the deadlock.
Maintaining a positive dialogue
This keeps the door open for continued discussions and signals your commitment to finding a resolution. Resist all temptations to start throwing your weight around, as the seller will likely close the door on all future communications. And that’s game over.
Demonstrating flexibility
You have to be flexible to overcome negotiation hurdles. Show that you’re open to exploring different terms – because it creates an environment where both parties can propose and consider new ideas.
Script 5: Closing the deal
Once an agreement is reached, it’s time to wrap up the deal with a professional and concise closing.
Sample script:
Hello [Owner’s Name],
I am delighted we have reached an agreement on the purchase of [Domain Name] for [Agreed Price]. Please let me know the next steps in finalizing the transaction, including any documentation or payment instructions.
We are excited to move forward and appreciate your cooperation in this process.
Best regards,
[Your Name]
The theory behind this ‘closing the deal’ script
Confirming the agreement
Confirming the agreed terms clearly and concisely is helps avoid any misunderstandings. It ensures that both parties are on the same page and lays the groundwork for a smooth transaction. Don’t skip this step!
Requesting next steps
Requesting the next steps helps streamline the transaction process and shows the seller you trust them to move the deal forward. It also conveys your eagerness to conclude the deal promptly.
Expressing gratitude
Being upbeat and thankful reinforces the positive relationship you’ve built during negotiations. It leaves a lasting impression – and can pave the way for future collaborations, too.
Summing up: the art of domain name negotiation
Domain name negotiation is a hard-earned skill, but for anyone looking to secure a valuable online presence, you’ll need to master it – or hire an expert domain broker to do your bidding for you.
Remember, the key to effective negotiation lies in preparation, communication, and flexibility. It’s something domain name brokers have learned – sometimes the hard way – over many years.
Our goal as your domain broker is to make your life as simple as possible – and to prevent you from overpaying for a domain name. Time and time again, the years of experience we bring to the party just works!
About the author
Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]
