#1 Tip for Closing Domain Name Sales
My #1 tip for turning domain name inquiries into closed domain name deals is something I hate to do but it works: get on the phone. And I’ll tell you exactly what to say.
In this video, I share my #1 tip for turning domain name inquiries into closed domain name deals. And it’s something I hate to do, but it works: get on the phone. And I’ll tell you exactly what to say. Stay tuned.
Hey everyone! My name is Michael Cyger, and I’m the founder and lead instructor of DNAcademy.
I’m going to share a tactic that I’ve been using recently that works almost every single time.
It’s a tactic I hate to do, but it works.
This tactic is from our negotiation section of the course. So if you’re wondering what’s inside DNAcademy, this video provides a snapshot.
Let’s get to the tip.
Here’s an example of an Efty for-sale landing page that I had up just yesterday. This is not the domain name that sold, which I’ll keep confidential in case I want to announce it on a DomainSherpa show in the future — but these type of landing pages are perfect for domain names priced under $10,000 or $25,000, depending on the quality of the domain name, of course.
But the buyer didn’t click the buy-it-now button. They clicked the “Or make an offer” link, and input the minimum dollar amount, which I always set to 65% of the buy-it-now price to prevent low-ball offers and tire kickers.
As with all Efty inquiries, I get to see the person’s name, email address, phone number, geographic location, offer and their message.
In this case, the message was clear: I’d like to buy this domain name.
And I thought I had a hot deal on this domain name because we were within 35% of the asking price.
But when I got this person on the phone, the story was a bit different.
I called within 30 minutes of receiving this inquiry, and it went to a Google Voice number voicemail. I left a message.
A few minutes later, I received a text message asking if he could call me back in 30 minutes, which I agreed to.
When he called, I introduced myself, said I was the owner of the domain name, described why I bought the domain, and how great I think it is.
Then I asked the potential buyer why he was interested in the domain name. He said he wanted to build it out as a resource for the topic.
But then the potential buyer’s story changed.
He told me that he could only afford $1,000, not the offer he’d made on the Efty lead form.
And he didn’t understand that domain names sold for more than $10 registration fee.
He was also quick to say that he was sorry for wasting my time and was just about to hang up the phone when I said, “hold on…let me ask you something.”
I then proceeded to say, “How about you put the $1,000 down on the domain name, and make the remainder of the full price via payments over 12 or 18 months? That way you get immediate access to the domain name and you can sell advertising and use that money to fund the rest of the purchase.”
He didn’t seem sold on the idea, but at least he didn’t hang up on me. And as he listened and I could hear the gears working on how that might work for him.
We spoke for 7 minutes and when we finished the conversation I asked him to think about it and call or text me back if he wanted to continue the conversation.
An hour later he texted me and told me he could increase his offer by 150%.
I texted back, “I am willing to take your offer as a down payment and then you can just pay the reminder over 12 months, and you can pay it off early without penalty. Then you can focus on conversations with potential advertisers who might want to sponsor the website to pay for it.”
He responded that he didn’t want an ongoing payment obligation and could increase his offer to 200%.
That’s when I used my friend Wenjie’s killer negotiation tactic. Here’s how that works.
When a potential buyer doesn’t want to buy the domain name at the advertised price or in a payment plan, you offer a one-time, one-day only discount of 5%. It doesn’t work every time, but when it does work everyone feels like they were the winner of the negotiation.
And that’s exactly what happened.
The buyer — somehow — found the extra cash to buy the domain name for the discounted price.
Then all I had to do was sign into my Efty account, update both the buy-it-now price and minimum price to the same number, and let the buyer know they can click the button to checkout at Dan.com, a trusted marketplace that will walk them through the entire transaction, step by step.
And because Efty has an integration with Dan.com, I only paid a 5% commission — which I also told the buyer I’d be happy to pay if we completed the transaction that day.
And for sub-$10,000 domain name sales, I do find that Dan.com has less hurdles to overcome than Escrow.com, where I can make the buyer pay the transaction fee.
I hope you found this negotiation tip useful and that you use it to close more deals yourself but before you go let me summarize the negotiation process for you:
Number 1: Get the potential buyer on the phone so you can hear their hesitation
Number 2: Offer a payment plan if they cannot afford the buy-it-now price
Number 3: Give them a small incentive to close the deal today
If you found this investing technique useful, I encourage you to sign up for the DNAcademy Accelerator that’s starting June 1st.
In eight weeks, you’ll not only get through the entire DNAcademy course, but you’ll have time to ask any question you have of both instructors — Jason Sheppard and me — and you’ll network and become close with a group of investors who will support your success going forward.
You can learn more and sign up at DNAccelerator.com. DNAccelerator.com. But don’t wait too long, we only have a few spots remaining for the batch starting June 1st.
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Thanks for watching.