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Thanks for stopping by. This is where I let off steam and talk about affiliate marketing, promotional codes, freebies, Apple stuff and anything else which motivates me to post (which judging by my track record isn't much)...

Thursday, 15 November 2007

How to (or not) Haggle for a Domain Name

Like many affiliates we "own" hundreds of domain names but we're not "domainers" and I find it quite entertaining haggling for domains that I really, really want but don't need.
I particularly enjoyed this conversation and haven't yet decided whether to continue the "negoiation" or not, perhaps your comments will help...

Dear Joe,
Thank you for contacting us about [domain.name]. The domain is priced at £5,000 or above.
[snip]
The price bracket indicated is based on a previous brief initial search of related websites and businesses using the term "[snip]", statistics such as Internet Traffic and advertising revenue and takes into account previous interest and offers on the domain name as well as the value of the term as a potential brand and Internet keyword.
We don't keep an exact price for any of our domain names on file... [snip] ...exact sale prices fluctuate over time so we research these on a case by case basis as and when required when we receive serious interest in a domain name.
If you do think this will be of further interest given the indication above and you would like us to look into this further for you and investigate a definite current asking price, or if you have any other questions or comments please let us know.
Best regards, ???

Hi ???, Thanks for your reply.
The domain has been for sale for ages (years) with no takers so I feel my £1000 offer is realistic irrespective of your estimated valuation. I don't need it, it's just a nicer fit for [snip]
Our main business is affiliate marketing through other websites.
As I stated in the initial form I have no plans to resell it for profit so you wouldn't be missing out and £1000 has to be better than it being parked for another year.
Regards, Joe Connor

Sorry Joe but that's not how it works, Regards, ???

Hi ???,
> Sorry Joe but that's not how it works.
I recently bought a domain where the initial asking price was 18k for 3.7k through Sedo so I know that's exactly how it is.
A domain is worth what someone will pay for it and given it's been sat there for years unused it's clearly not worth what you value it at.
I'll email you again next year ;-)
Regards, Joe

Hi Joe,
"Sat there for years unused"? you make it sound like an old washing machine! Like I say that is not the way it works and you clearly have no concept of my businesses model in this area, something which has nothing at all to do with whatever a bunch of jokers on Sedo may get up to.
I am not going to enter into a debate with you on this and explain the situation because I get hundreds of people come out with similar nonsense to me every year and I never normally reply.
But to put you straight though on this on this occasion it is suffice to say whilst your thoughts on this are a nice idea for you and your desire to try and secure this domain name; and a good attempt at an angle for you to try and bargain a lower price on it, they are fundamentally incorrect.
An asset in this instance a domain name like this one that is firstly appreciating in value and secondly generating revenue does not fit with your description, as someone who makes money out of parked domains with advertising on them you must surely be aware of this second point. If it were like an old washing machine and becoming out of date, obsolete and depreciating and something I had to pay storage and rent on and was falling into disrepair then, yes, you may have a point, and yes I would then be wise to look at trying to secure a deal, but the situation bears no comparison to that and your reasoning is clearly flawed.
So nice try, but regardless of your past experiences in buying domain names there is no way I will be selling this domain name for any less than the price indicated whether now or even if I still have it in 10 years time. If I were in a hurry to get rid of it and needed the money I know two places where I could sell it for more than three times your offer, immediately, today guaranteed.
If however you are in the future in the position to make a genuinely "realistic" offer if say your business grows for example and you have more money to spend feel free to let me know.

Best regards, ???

So the domain probably has a true value somewhere around £3000 and I could probably get it for £5000. Follow up suggestions welcomed...

7 comments:

  1. ask him whether he could get a washing machine up his arse? Because that's where the domain should be placed!

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  2. Hi There

    Interesting, amusing email dialogue!

    The bloke wants £5k and knows you're interested (cos you got in touch) so he possibly feels he can hold out a bit.

    Suppose it depends just how much you want it. Offer £3k and he'll probably still say £5k.

    If it's a generic domain name and you want it for the potential type-in traffic then ask for the visitor stats (if you haven't already).

    Is a .com or .co.uk ?

    Hope you announce it if you get it.

    Best of luck

    John C.

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  3. Hi Guys, thanks for your comments. It's a co.uk domain and I only want it for vanity reasons - but I can be quite vain! ;-)
    Interesting you've both assumed it's a bloke.

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  4. you're telling me women use the internet as well?!

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  5. Hi Joe,

    The title should be corrected to:

    "How not to Haggle for a Domain Name"

    Your argumentation to lower the price was indeed flawed.
    Without knowing the domain - the sellers argumentation comes from someone who clearly understands the domain business.

    Just because you got a price lowered, and substantially lowered in your previous domain buying experiences does not mean you can get this domain for a much lower price as well.

    If a domain is unsold for a x amount of time does not mean there is either A: no interest or B: the domain isn't worth the advertised price.

    Parking the domain is also a source of generating revenue.

    In overall you have showed you have no experience when it comes to domain valuation and negotiation.

    This post is not intended as a bashing contest but merely to point out you where wrong and the seller is right.

    Cheers!

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  6. Anonymous doesn't raise any new points. I already said I'm not a "domainer" and I don't claim to understand the domain business but I am a businessman and I have read that essential business bible "The emporor's new clothes" and that, along with a game of monopoly is what the domain business feels like to me.

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  7. This reminds me rather a lot of people holding out for peak house prices that will not be coming back for a few decades! Quite amusing it's a woman too.

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