Link to Dnforum.com Thread:
So this next video is about negotiating. And there’s a thread that’s been on DNForum for a little while. It was how I negotiate a sale, from a few hundred dollars to $60,000. Everyone that’s read the thread has found it very informative and very interesting. And some of the techniques that I’m going to show you and read, when I actually read what happened in the thread, you’ll find interesting.
So here’s a bit of background. I was sitting at my desk in my office– my home office. It was around dinner time. My wife came in to talk to me and ask me something about one of the kids or schoolwork or something. I don’t remember what it was exactly. And my phone rang.
So I picked up the phone, and some guy was on the phone who was interested in megacity.com. And I wasn’t really paying attention to him all that much, because my wife was in my ear. Not in a bad way. She was just talking to me before the phone rang.
So what followed was a discussion where he offered me a couple hundred bucks for the domain name. And I said, I’m sorry. The domain name was megacity.com, which is what they call Toronto and all of its suburbs, they called it the megacity. Same as, I believe, they call Los Angeles and all of its burbs the megacity.
Anyway, so I wasn’t all that interested in talking to the guy, since he only offered a couple hundred bucks. And I was about to hang up on him when he decided that– his exact words were that, well, if you don’t sell to me, I’m going to sue you, because I own the trademark.
So at that point, well, obviously, I tend to get a little bit of enjoyment out of it. So I said, you know what? And while I was sitting there, I was googling, and I checked the USTPO, which is the US Trademark and Patent Office. I did a search for the trademark. Obviously, he had no trademark.
So I said, you know what? I said, go ahead and sue me, because I don’t believe you have a trademark. And I hung up on him. And when it comes to domain names, you’re definitely in control. Because it’s not like townhouses, or apartments, or cookie-cutter houses, where, if they don’t like Adam Dicker, they can go and buy the townhouse, or the house, or the apartment, or whatever, next door, and it’s the exact same thing, and they get to negotiate with somebody else.
But if this guy wants megacity.com, he’s got to negotiate with me, and he didn’t get off to a good start. So you’re definitely in control. They want your domain name. You state the price, and they have the choice to pay it or to go find another domain name. Which is exactly, what, basically, I told him.
So, I posted this sale on DNForum, because it shows how to be successful in negotiating a sale. And I’ve said this before, any idiot can go register a whole bunch of domain names. The real art of the domain– quote, unquote– is knowing how to sell and how to negotiate.
So let’s go through the thread now. So I’m gonna be looking down a little bit, because I want to make sure I read you exactly the conversation. And at the bottom of the video, you’ll see a link to the actual thread.
So the first thing was a phone call, like I stated. The previous week for the domain, I stated that the domain was not for sale, and the potential buyer threatened me with a trademark. And a trademark search showed that there was no TM.
So, about a week later, I get an email that says, “I’m interested in buying the same domain name, megacity.com. Can you send me a price? We can use escrow service to complete the transaction in a secure way.” So I already know he knows escrow.com, so here we go.
So I send him a note back. And it’s very short and I’m very straight to the point. And it says, ADK, escrow is fine. Adam. His response, “Oh, that is too much money for me. I’m using this for my wife’s bazaar in Lima, Peru. Can you take $2,000?” My response, again, sometimes it’s better to be very short and to the point.
So here’s my response. “No. Pick another domain name.” His next email, which was the same day, “Can you improve the price? I can send the money on Monday if we agree to something more reasonable. Thank you very much.” So my response, again, was– same day, “We are too far apart. Please pick another domain name.”
His response, three days later. “Hello, Adam. I was wondering if you could send me your best price. I think I could try to meet you somewhere reasonable. Please let me know.” So my response, again, is, “I don’t have time for games. What is your best offer? I can tell you nothing under 40K will be considered.”
And I signed that. That’s 25th of February. Then his next response, on the 28th, is, “Well, how about 40K?” So now, I’ve gotten him up from a few hundred bucks to $2,000, and now he’s at $40,000. So at this point, I know, obviously, he’s serious. I know, obviously, he wants the domain name.
Obviously, I’m going to get a good sale out of this. Now, the question is, what is going to be the end price? So now that he’s become a little bit more serious about the domain name and the price, I said, “I will meet you halfway at 60K. Adam.” And that’s all I said.
And then his actual email after that was that he accepted my offer of 60K, and the transaction was closed, and megacity.com– a domain that I may have sold for $5,000 or $10,000– ended up selling for $60,000.
So what’s the moral of this story? The moral is, never be shy to stand your ground, never be shy to state your price. And never worry that some– because somebody comes at you with an original $200 offer, or $2,000 offer, don’t worry about scaring them off. Because if they want the domain, they have nobody else to negotiate.
And don’t be afraid, as I told him on three, several occasions. Go pick another domain name, because this domain is not for you. That’s kind of like how auctions work. The more people can’t have something, the more they want it. The more they want it, the more they’ll pay, and the more they’ll get caught up in the frenzy.
Since then, I’ve found out that he was running a game that was called Megacity. I believe he’s based out of Brazil. And he’s got the domain he wanted, I got more than a fair price for megacity, which is what I wanted, and everybody’s happy.
And I just wanted to make sure you understand that it’s very important to know how to negotiate. And you can tell a lot by somebody’s opening bid. In this case, if it’s a low-ball bid, like $200, it’s very hard to tell a lot. But if somebody comes out of the gate and offers you $1,000 to $2,000, or even more, then you know you’ve got a serious offer on the table.
And never think, oh, wow, I’ve got an offer for $2,000. I think I can get– I’m happy with that. I only paid $7 for the name. If they come out of the gate at $2,000, $3,000, whatever, always, always give yourself room to negotiate, and come back at a higher price.
And don’t ever leave money on the table. Because it’s your money. And if you sell too low, and you leave money on the table, you’re the one losing out, and the buyer’s the winner. In the case of megacity.com, I posted the string on DNForum, it taught a lot of people how to negotiate sales, and it taught a lot of people that, look, if you say no, they’re not always going to run away. They don’t have a choice.
And I have a few others that are always going like that, where I have some four-letter dot-coms, and it’s the guy’s first initial, last name. And I know he wants it. So eventually he’s going to come back. He disappears for about five or six months at a time. And then he always comes back with a new offer.
Anyway, the one thing I want you to take away from this is that, don’t leave money on the table. Learn how to negotiate. And if you can, pick up one of the books by Zig Ziglar. He was one of the original people that teaches sales techniques. And even though the books are probably 30 or 40 years old, some of the techniques that you’ll learn in them are excellent.
I’ll try to find some links to those books, and I’ll put a couple of them up there. And it will help you sell, and it will help you negotiate. As many of you know, Dan Brown posted on [INAUDIBLE] blog in the last week about what he learned from me in DNF College, which was how to sell domain names and how to get more money for them.
He came up to me at the TRAFFIC conference and said, because of you, I’m able to go to this conference. And because of you, I made an extra $40,000 this year. And he said, I don’t know how that makes you feel. Well, you know how it makes me feel?
It makes me feel really good that something I posted was able to help him make more money, and I’m hoping it’s going to help all of you make more money. So, learn how to negotiate, learn how to sell, and you’ll be better off than 95% of the other domainers that are out there.
I hope you enjoyed this video. And, as you can see, we’re starting to get to the meat of domaining. And I plan on doing some more meaty videos today, which you’ll see me in my yellow shirt again. Because I’m not going to run upstairs and change shirts five times during the day. I don’t think the shirt matters. I think the content matters.
So, have a great day. And I hope you enjoyed this video. I know I enjoyed producing it. Go out there and make more money. Bye for now.