The leeway you have to negotiate a deal for a particular domain name depends on a number of factors, including:-

• The maximum amount of money you are prepared/able to spend to secure the name
• The importance you place on securing a particular domain
• The initial approach you used in contacting a buyer
• How urgent it is for you to secure a domain name

Like any business transaction involving goods without a preset pricetag, the success of any domain name deal you close will depend in large part on your ability to bluff your opponent into accepting less money for the name than you would ultimately be prepared to pay, while at the same time convincing them that they have a good deal. At the end of the negotiation process, both parties should be able to walk away satisfied.

DOMAIN NAME NEGOTIATION TACTICS

1. Ask for more information

A request for additional information can sometimes prove very productive in the course of a negotiation, especially if you can ask for information that the other party doesn't have available!

For example, if you know that the domain name is not pointed at a "live" site (and therefore that the owner cannot have any idea of the traffic it is receiving), ask them:

Before I can make a decision about the domain name, I would like to know how much traffic your domain receives every month. This will help me to understand the value of the domain name.

With a bit of luck, you will get back a reply to the effect that the owner doesn't know how much traffic the domain name is getting, since they're not currently using it - or even that they don't understand why it should be getting traffic at all!

At this point, you can take advantage of the fact that you have successfully wrong-footed the seller in order to make them accept a lower offer than they might otherwise be willing to consider. For example:

While it's difficult to know what level of offer to make for your domain name without having any information about the potential traffic it receives, I like the domain and I would be prepared to pay up to $1,000 for it if it can be made available quickly. My offer is valid for the next 7 days. I look forward to your reply.

2. Make sure time is on your side

One effective way to end a back and forth negotiation at a price that won't leave your wallet bleeding is to inject a sense of urgency into the proceedings. This can be done using any number of pretexts: "I have been tasked by my boss to secure a domain name for the new site within the next X days", "I am looking at a number of domain names, including yours, and I need to make a decision on how to spend my $1,000 budget within the next X days" and so on.

Judicious use of a fast-approaching deadline can be enough to make a potential seller blink and accept a lower price than they might ultimately want, out of fear that they might otherwise lose the deal completely.

REMEMBER: You can play on the psychology that for many people, guaranteed money today is worth more than the possibility of more money at some later date.

3. Make it very easy for the seller to get their money

You may be able to keep the price of a domain purchase down by taking a risk. By gambling that the seller is honorable and will go through with the transaction after they've received payment for the domain name, you may be able to make the transaction quicker and more affordable.

If you have access to an instant payment system such as Paypal, you can offer the seller some or all of the money for the transaction up front. For example:

If you're willing to accept my offer of $1,000, I am happy to Paypal you the money immediately. Once you have received the money, we can then discuss what the simplest way of transferring the domain name would be.

4. Make good use of your "partner"

Sometimes, referring the transaction to a "difficult partner" can help you secure a better deal. For instance, you might respond with the following:

While I appreciate that you are looking for more money for your domain, I will need to discuss this with my partner before we can decide if we can afford to increase our offer. Leave it with me, and I will get back to you within a few days as soon as I have had a chance to discuss this with him.

After allowing a diplomatic 2-3 business days to elapse, you could follow up your earlier email with something like the following:

I've discussed the domain name issue at length with my partner, and while I'm keen to move ahead with this transaction, he is adamant that we should not exceed our $1,000 budget (as a startup, money's pretty tight at the moment). Unless you're able to sell us the domain at that price, we will sadly have to begin looking elsewhere.

REMEMBER: You can introduce your "difficult partner" at any stage of the negotiation, so long as you don't paint yourself into a corner in earlier emails by stating that you're doing the domain deal alone. It doesn't have to be a business partner - a thrifty spouse can also play the deal closer/killer role admirably.

A final word

If you took the advice in the previous section and concealed your identity behind a free email service and an innocuous name, you've always got a second chance even if the current negotiation flounders. Just wait a few days, set yourself up with a new identity/persona, and try a different approach to see if that will get you further...

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