Negotiation is a crucial aspect of selling domain names; however, the act of negotiating can be a daunting undertaking for many people. But domain negotiation isn’t as difficult as it may seem—if you have the right techniques for reaching your bottom line.

Essentially, negotiating is the act of conferring with others in order to reach a compromise or agreement. The objective is to help the other side meet its needs, while getting what you want out of the deal. In other words, provide buyers with domains of the highest possible quality at the highest possible price.

But before you can begin negotiating to sell a domain name, there are some basic measures you should take to ensure your success. You must determine the market value of the domain, the lowest amount you’re willing to take for it and what method to use for selling it.

Domain name negotiating is actually a process that should start well before you reach the discussion stage with a prospective buyer. Preparation is the key to any successful negotiation, and the same is true for domain names.

Every hour that is spent preparing to negotiate will be rewarded many times over when an agreement is finally reached. By fully understanding and preparing to respond to the domain purchaser’s position, you’ll be in a better situation to reach a favorable agreement. In other words, the more prepared you are, the more skilled and successful you will be as a negotiator.

Determining the Value of Your Domain

Before negotiating to sell a domain, you should conduct research to get a feel for how domain names are valued. This will give you an idea about what your domain is realistically worth. Otherwise, you could find yourself setting the price too high, which can discourage offers. Or you could under price the domain and leave money on the table.

Visit Websites that sell domain names and research the price of domains similar to the one you’re selling. You’ll notice that shorter .com domains command a much higher price than longer domains ending in extensions like .net, .org, .info and .biz.

You should also purchase an appraisal from a source such as Moniker to determine the current market value of your domain. At Moniker, valuations are done by professionally-trained domain specialists using custom domain appraisal software. Each domain name is analyzed based on 17 separate factors, including marketability, brand recognition, unique type-in traffic and length. Evaluators also factor other domain name sales and appraisals into their valuations.

Non-expedited appraisal orders through Moniker cost $24.99 and arrive by email within three to five business days. Expedited appraisals, which are priced at $39.99, are generally returned within three days.

Other providers of domain appraisals include Zetitic, NamePros and Go Daddy. Regardless of which resource you use, investing in an appraisal is well worth spending the extra money and time.

Once you have an accurate estimation of your domain’s market value, you must identify the minimum price at which you’re willing to sell. Your personal valuation of the domain name will depend on its current market value, the brand value and your expectation of the future price trends. And because each domain name is unique, skillful negotiating will ultimately determine the price your domain fetches on the open market.

Methods for Selling Domains

After you have determined the market value and rock-bottom price you’ll take for your domain, it’s time to choose a sales approach. There are a variety of avenues for selling domains, including an auction listing, placement with a domain broker, private Website and direct contact with buyers. Each of these methods comes with their own advantages and disadvantages. The route you take will depend on your profit motive, time table, personal preferences and other factors.

Auction Websites offer the advantage of an immediate sale. However, if there’s no one interested in buying your domain when you’re ready to sell, an auction listing can result in a lower price. Popular auction Websites such as Afternic.com and GreatDomains.com make it easy to list and track domains for sale.

Afternic.com’s system allows you to list and promote domains, as well as communicate with interested buyers. You can browse without registering and take advantage of a free standard membership. To sell domains, however, you must purchase an Exchange Membership for $19.95. As a member, you can access two types of appraisals, participate in discussions on various topics, see the latest domain name industry news and get up to speed with a buyer’s and seller’s guide. The Website also enables you to keep track of domain names you own, are auctioning, or are monitoring. The auction and escrow fees are reasonably-priced. Sellers pay 10 percent on each sale or a $60 minimum.

GreatDomains.com also offers a free membership. And there’s no fee for placing an auction listing, although you can opt to pay more for better exposure on the site. However, sellers must pay a 10-percent transaction fee that is deducted from the final sales price. The site sells .com, .net, .tv, .org, .us, .biz, and .info, and .cc domains in a wide variety of categories ranging from arts and entertainment to travel and television.

Placing your domain with a domain broker is another common way to market a domain name. A broker can connect you with a buyer who has been desperately seeking the domain you hold, eliminating the need for you to regularly check “wanted” and other listings. Websites such as DomainMart will match what you’re selling with wanted listings while carefully protecting the full details about your domain name. This can give you almost immediate access to potential buyers and facilitate a faster sale.

Choosing the right domain broker is important, as brokerage services can vary widely. Some brokers manage every stage of the sales transaction, while others merely provide a domain listing service. If you settle for a basic listing, you’ll be responsible for handling the actual sale with the buyer. When selecting a broker, carefully define the services and fees involved. Determine the commission rate and whether the broker charges for placing bids. Most brokers have a sales commission ranging from 10 to 20 percent of the final negotiated price. TopDollarNames.com, for instance, charges a 5-percent commission on domain sales with no additional escrow costs if escrow is handled in house.

You should also consider how many names are listed on the site. Your domain will stand out more if the site lists fewer names; on the other hand, a larger site can deliver more traffic and provide greater perceived "security". To maximize your exposure, you might check into listing your domain with more than one broker.

When you list your domain with a broker, be sure to update the WHOis database to indicate that your domain name is for sale. For example, you could revise the "company" or "contact" information in the admin section of the domain to read "This domain is for sale at DomainMart". This will alert potential buyers about the availability of your domain so they can follow up with you directly or through your broker.

Setting up a private Web page is a straightforward way to market a domain name to prospective buyers. You simply create a basic page connected to that domain, with a short message such as "This domain name is for sale. Please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more information.” You can use a pre-designed template to create your page or hire a Web developer to build one for you .The advantage of this sales method is that it requires very little time and effort, yet it allows you to promote your domain directly to potential buyers. You can also actively advertise the site on major search engines to broaden your exposure, attract more visitors and boost your chances of selling your domain.

When advertising on a for sale page, it’s vitally important to list a specific asking price that reflects your domain’s fair market value. Research shows that domains listings displaying "make offer" without a price specified can be more difficult to sell. And overpriced domain names can turn off buyers, while domains set at a fair asking price tend to generate bids.

You can also contact buyers directly to facilitate the sale of your domain. With this option, you can secure a list of potential buyers from a source like DomainMart. With DomainMart, you’re provided a customized list of contacts whose businesses are relevant to your domain name. Then you can contact each business to see if it may be interested in buying your domain. When selling a domain privately, consider using escrow services to facilitate the transaction.

Impressive Domains offers escrow services for a nominal fee—the greater of $50 or 10 percent of the sales price. The company will collect the money from the buyer, keep it until the domain name has been transferred, and then release it to you. This service may be worth the money if you anticipate getting a high price for your domain.

A number of companies offer escrow services at no charge. Sedo, for instance, provides free escrow services for all domains purchased through its Website. Sedo provides customers with a secure financial intermediary, a domain sales contract and assistance with the technical transfer of the domain.

Conducting Negotiations

Negotiating to sell a domain name requires skill, strategy and patience. When negotiating, a common approach is to start high and work down to the lowest price you’re willing to accept from a buyer. For example, if your target price is $700, you might set the asking price at $1,000. Don’t be surprised if the bidder pretends to be shocked over your “ridiculously high” initial price. It’s a psychological ploy to make you feel uncomfortable about the amount you’re asking.

The bidder might also try to undermine the value of your domain by highlighting negative points. He or she might say that maybe the domain is a bit too long or has a .net extension instead of the more popular .com. This is another psychological maneuver used in negotiating to get you to lower the price.

At this point, you can hold your ground if you’re firm about the asking price. The bidder will meet your price if he wants the domain badly enough. Or you can counter with a lower price if you’re flexible on the amount. Your next price point could be $850. Then if the bidder makes another counter, you could drop down to your target price of $700 and let the bidder know it’s as low as you will go.

So what if you’re not up to negotiating for the name directly with a potential buyer? Consider using the services of a professional negotiator or brokerage service. It will cost you, but the professional assistance you receive could translate into bigger earnings from the sell of your domain.

Negotiating Over the Phone and Email

When negotiating on the phone, don’t get nervous and babble on. When people are anxious they tend to talk too much and listen too little. Express your points concisely and listen carefully. Often, clues about possible room for negotiation will be apparent in their reply.

Better yet, write down a list of talking points before you respond to the prospective buyer. Then keep it in front of you during negotiations. This will help ensure you have the information you need at your fingertips to conduct an informed, rational exchange through the negotiating period.

Never allow emotions, such as rudeness, frustration or anger to cloud negotiations. Maintain a polite, professional demeanor during discussions. Remember, your goal is to sell your domain for a healthy profit.

If you’re negotiating by email, it’s even more important to be courteous because it’s easier for misunderstandings to occur in written communications. Stick to basic email etiquette. Don’t use capital letter to emphasize a point. Capitalized text indicates shouting, plus it’s difficult to read. Italics and colored fonts can also be harder to read. And some computers may not be able to “decipher” different type styles and colors, so it’s safer to choose plain black text.

Email can be an efficient way to negotiate because it provides an easy way to present supporting details. (But don’t send huge files by email that can tie up the system.) It also enables both sides to examine all the pertinent information at their convenience, which can result in a more mutually-beneficial agreement.

Other Useful Tips for Negotiating

When negotiating to sell a domain name, there are some key concepts you can follow to create a winning outcome. Here are just a few of them:

Communicate clearly. Good communication is essential to successful negotiations. Like a two-way street, it flows in both directions. If you fail to effectively express your position when domain negotiating, the other party will not be able to understand your needs and vice versa. And if common ground isn’t met, both sides will leave the table empty-handed.

Be patient. Negotiations often require multiple phone calls, meetings and emails. So be prepared to spend whatever time is required to seal the deal.

Create a win-win. Negotiation is an act of cooperation not an all-or-nothing undertaking. You have to give a little to get a little to create a winning situation for both sides. Consider the other party’s circumstances and be prepared to make small concessions that can help everyone get their needs satisfied.

Know when to quit. If negotiations are at a standstill and you’ve conceded all you can, it may be time to give up. No one likes to lose or quit, but not all negotiations can end in success. You might need to pursue another avenue for selling your domain name.

No matter how you handle domain name negotiations, it’s important to create a win-win for everyone. In successful negotiations, both sides come out satisfied that they have gotten what they wanted.

Finalizing the Transaction

After you have negotiated a satisfactory sales price, it’s time to collect payment and transfer the name to its new owner. But how do you make sure you receive the money before relinquishing ownership of the domain? That’s where transfer and escrow services come in. GreatDomains.com, for instance, provides fee-based escrow services for brokered or private transactions to ensure payment of funds and proper transfer of the domain. These services can be particularly important if the transfer involves a foreign language or currency.

Transferring is technically the process of changing the party whom is listed as the domain name registrant or owner. Typically, the party taking over the domain name is responsible for paying a new registration fee. Transfer services through DomainMart include making sure that the buyer and seller agree on the sales price of the domain name, commission to be paid for coordinating the transfer, method of payment and any special arrangements needed after the transfer process is considered complete. Upon receiving the agreed upon transfer value from the buyer, DomainMart will initiate the ownership transfer process with the registrar of the buyer's choice.

When the information in the WHOis database reflects that of the buyer, DomainMart will release the funds to the seller. The funds can be transferred to the seller either by a bank-wire or cashiers check. Once the funds are transmitted, the transfer becomes complete.

Transfers within the same registrar are typically completed within a few business days. Transfers to a different registrar can take five to six days on average.

Whether you use auctions, brokerages or private Websites, selling domain names can be a lucrative business. The key to maximizing your bottom line is to exercise skillful negotiating techniques that capitalize on the true value of your domain name.