It Can Hurt To Try Part II
Work Closely with your Broker to Choose your Price Wisely when Selling Premium Domains
Identify a Price Range within Market Value: While most sales are not made on the first, or second, or third contact, a buyer smells blood in the water if the asking price is drastically reduced time and again …and again. Now, of course if a domain enters the market at a reasonable price, there’s room to negotiate and, if necessary, to circle back with a lower price offering.
But, if your broker initiates negotiations with a price that’s far inflated over the real value, that can cause a negative reactionary response in the buyer, who won’t make an offer at all or will only offer a very low amount. Common Mistakes to Avoid when Choosing your Broker and your Premium Domain Price:
- Don’t go with a broker because they offer the best commission*. If they can’t sell it, nobody gets paid. If they sell it below market value, what you didn’t pay in commission, you paid in lost revenue.
- Don’t choose a broker who promises you the biggest paycheck.* Projected market value is tempting, but needs to be backed up with a broker’s proven sales experience in those price ranges. If a more experienced broker recommends a lower value, listen attentively.
- Don’t treat your broker like a buyer. Before signing a contract, a broker is checking you out, too. Playing hardball and suggesting unrealistic reserve prices to your broker wastes time. A good broker will know a realistic reserve price, and will either negotiate with you for that, or decide that you’re too difficult to work with. Think about it: a premium broker works for free, looking for a buyer for your domain.
He needs believe this domain is priced to sell in order to do all that work to bring a buyer to the table. In choosing your broker, if you’ve selected one who is known for always representing the client, then there’s a framework of trust within which to set an asking and reserve pricing.
There are situations where holding your domain investment may be in your best interest. Talk it through and strategize with your broker. Timing is everything. A broker can assist in strategizing for a specific domain or for an entire portfolio. When you are ready to sell, choose the price carefully. An asking price too far removed from real market value can shut a buyer out permanently. An amount at or very close to market value makes it easiest for a buyer to enter into a conversation.
Your broker’s job is to convince the buyer that they can work together: an overinflated price says the opposite. *Recommended reading: It Can Hurt to Try Part I: Why to Choose Your Broker Wisely when Selling Premium Domains