When you’re negotiating the price of a domain name, especially a premium domain, you’ll want to make sure you’re prepared and able to get the best price possible. There are a few steps to take before negotiations can start and this is the process you should go through. We’ll show you how to start with domain research and finish with tips on how to negotiate a lower price.

Domain Negotiation and the proper process

How do I negotiate the price of a domain name?

Negotiating a domain name with an owner using a domain name broker typically involves several strategic steps to achieve the best price. The process begins by selecting a reputable domain broker or marketplace, who will act as an intermediary and bring industry expertise to start negotiating domain names. Valuable domains should always be negotiated.

The expert will then research the domains value, taking into account factors such as market demand, SEO potential, branding relevance, and comparable sales to generate a fair market price. The buyer ultimately will determine the value of the domain name to their business.

If you use a marketplace to sell, the broker may provide additional services that may not be available from an independent domain expert.

Steps to take when negotiating a premium domain

Research the Domain Name You Want to Buy

When researching domain names you want to buy, the first step is to evaluate how well the domain fits your brand and overall website goals. Remember, domains are valuable!

You’ll want to ensure the domain name is easy to remember, spell, and pronounce, as well as relevant to your target audience and industry.

Next, perform a domain lookup using tools like WHOIS to check whether the domain names are available for purchase, or if it’s owned by someone and possibly up for negotiation.

In many instances, the owner will not respond to your inquiry or the domain may have already been sold.

If it’s registered, using a browser to check its expiration status might give insight into whether it could soon become available to negotiate a possible sale for your Company.

Due Diligence

It’s also essential to dig into the domain’s history to understand its previous use, traffic patterns, and any potential issues. Using tools like the Wayback Machine, you can view the website’s past content, which can help you avoid domains associated with spam or negative SEO practices.

Read each article carefully to get better acclimated with the history of the domains in question and better negotiate the final cost and price with the selling agent.

Search Engine Optimization

Tools like Ahrefs will help assess the domain’s SEO performance, including its backlink profile and organic traffic data related to a website.

This is important because a domain with a solid SEO foundation could bring value beyond its name, while a domain with penalties or poor history might hurt your website ranking.

Legal Diligence

Additionally, you should conduct a trademark search to avoid any legal conflicts. Domain names that infringe on existing trademarks can cause costly legal issues, so checking databases like the USPTO is a key step to avoid additional exposure. Buyers can visit USPTO.gov to run a search.

Search tools to help you negotiate

To determine the domains market value, use valuation tools such as Estibot, which assess the worth based on factors like the extension (.com, .net), keyword relevance, and previous sales of similar domain names. Before purchase, buyers should also visit a domain marketplace to better understand values.

Conduct Research

Consult with a developer to see what services work best for you and what type of articles or content to include on the website. Read more articles about developing a website and adding a host.

Domain Monitor

Finally, monitor domain names for changes or potential listings on auction sites, as some domain sellers may have sold, or let the registration lapse, providing an opportunity for you to acquire it at a favorable price and secure the perfect domain.

Time to Negotiate

Negotiating a domain name acquisition requires a mix of strategy, patience, and preparation for the buyer. The process begins with thorough research of the domain’s value, past usage, and SEO potential.

Start with a Reasonable Offer

Make contact with the seller or selling agent with an initial offer that is lower than your maximum but still reasonable. This leaves room for negotiation while signaling that you’re a serious buyer on the line. The opening offer should be based on the domains valuation and your research on similar sales. Will they sell?

Expect a Counteroffer

Domain owners, especially if they have valuable domains, may counter your offer with a higher target sale price. Be prepared to negotiate and remain flexible. It’s common for negotiations to go back and forth several times before reaching a final agreement.

Non-Monetary Terms

During the negotiation, consider non-monetary terms that might sweeten the deal and save you money with an idea outside the box.

• Installment payments: Offering to pay the total amount over time may make a higher price more palatable to both parties.
• Lease-to-own: This allows you to use the domains while making lower price payments and eventually taking ownership, with a balloon payment.
• Equity or partnership: In some cases, offering equity in your business or a partnership might appeal to the domain owner selling the domain name.

Stay Professional and Patient

Domain contact negotiations can take time, so it’s important to remain patient and professional throughout the process. Avoid pushing too hard and always remain interested during the active negotiation. You don’t want to upset the seller, or selling agent.

Keep communication respectful and open to maintain goodwill with the contact.

If working with a marketplace, make sure to align with your representative when trying to buy domains.

Bona Fide buyers

When reaching out to the domain owner, it’s important to express genuine interest without revealing too much about your business or use case. The initial offer should be reasonable but leave room for negotiation.

The owner may also have other potential buyers interested in the domain name that may pay a premium price. Many domain owners think the grass is greener on the other side!

Get it closed!

Once a price and terms are agreed upon, the domain expert drafts a formal purchase agreement. To ensure a smooth transaction, an escrow service is typically used to hold the funds until the domain name transfer is complete.

Ensuring you have full control of the domain names in your possession to build your perfect website.

Funding

The funds are typically placed in escrow until the domain migration is completed and verified, at which point the payment is released to the seller. After the domain has been confirmed, you officially gain ownership of the domain, concluding the acquisition procurement for your site.

This timeline of events can take a while depending on your acquisition strategy or marketplace used to acquire the domain name.

Transfer Process

After the buyer deposits the funds into escrow, the domain owner transfers ownership, often via a registrar or domain migration service. Once the domain transfer is verified, the escrow service releases the funds to the seller, finalizing the sales process. Purchase complete!

Benefits of Using an Escrow Service:

Security: The escrow service ensures that the buyer’s funds are only released once the domain is successfully transferred from selling agent, protecting both parties.

Transparency: All steps of the process are tracked, and both parties have clear visibility into the status of the transaction and deal will lead to the best price.

Dispute Resolution: In the event of a dispute, the escrow service can mediate and help resolve issues, offering a neutral third-party service. This can save you money and be a game changer.