Buying domain names like a boss

Buying domain names like a boss

Before delving further into the world of buying domains (I’m relatively new to the scene), I set out to brush-up on my negotiation tactics and skills. As we all know, more often than not the premium dot com you have your eyes on is taken. I’ve learned that the level at which you negotiate can make or break a domain acquisition. Here are some of my findings to ensure stellar negotiations:

1. Do your homework

As always, do your homework. This is what successful negotiators do. Gather as much pertinent information about the domain name and its seller prior to beginning negotiations.

  • What are the domain’s characteristics? Does it contain keywords with large search volumes, direct type-in traffic or ad spend? Is it blacklisted?
  • Are alternate domain names or extensions available?
  • What trademarks exist? It takes just a couple of minutes to check, but could cost you thousands.
  • What are the seller’s needs? Does the seller need to regain acquisition cost? What is the domain’s sales history?
  • What pressures does the seller feel? Do they have monthly sales targets? Tax obligations?
  • What options does the seller have? Is the domain related to a small niche, or large market with lots of potential buyers?

Doing your homework upfront is vital to a successful negotiation. You won’t be able to make accurate decisions without understanding the other side’s situation. Buyers who fail to do their homework leave money on the table.

2. You’re the boss

You might not be a seasoned negotiator but with some practice you can be.

Successful negotiators are assertive and will challenge everything — they know nothing is set, and anything is possible. Let the seller know what you want in a way that isn’t aggressive. Refer to yourself rather than the seller to avoid unintended statements; for example, “I think your asking price is too high,” is less threatening than something like “Your asking price is too high.”

“Challenge everything” means not taking things at face value — research the facts at hand and think for yourself. You have an obligation to question everything you read and hear. Anything is possible so think outside the box!

3. Listen up
As a negotiator you are Sherlock Holmes! You should be asking probing questions and then shutting up. The seller is going to tell you everything you need to know – all you need to do is listen. Most conflicts can be resolved simply by knowing how to listen, not by focusing on what we are saying.

Try the 70/30 Rule: listen 70% of the time and talk 30% of the time. The trick is to ask open-ended questions — questions that can’t be answered with a simple “yes” or “no.”

4. Go slow, start low
Patience is key — we always want to seal the deal quickly — but negotiators that take their time are less likely to make mistakes and leave money on the table. The party with the most time has the advantage in negotiations.

A strategy that brings success more often than not is to rebut the initial seller’s offer with one well below what you intend to close at. People who aim higher (or lower in this case), do better.

5. Brodow’s Law – “Always willing to walk”

Brodow (one of the great negotiators) has a saying that if you depend too much on the positive outcome of a negotiation, you lose your ability to say NO. Always be willing to walk!

Be in the position where you can honestly say “I will walk if I can’t conclude a deal that is satisfactory.” This doesn’t mean you need to walk away but if you won’t consider the option then more than likely you’ll be inclined to cave to the other side’s demands to seal the deal.

6. There is no such thing as a free lunch

Make sure that whenever you give something away, you get something in return. Always say, “I’ll do X if you do Y .” As a negotiator you don’t want to set a precedent where the other negotiator will ask for additional concessions.

7. It’s just business

Negotiations often fall short because parties get sidetracked focusing on personal issues, issues that are not pertinent to closing the deal. Make sure you are tolerant and respectful of the other party — try not to take anything personally! At the end of the day “it’s just business.”

Have a tip of your own to share? Drop a comment below and share what you think is important for a successful negotiation.

 

Flippa app now on Android (and iOS)

Flippa app now on Android (and iOS)

It’s exciting to announce Flippa’s first Android app today. Accessing the Flippa Marketplace while you’re on the go is now easier than ever before. You can install the app from Google Play or if you haven’t yet downloaded our iOS app you can grab it from the App Store.

The Flippa app allows you to discover websites, domains and apps listed on the Flippa Marketplace. When you’re participating in an auction the app will notify you when your bid is accepted, when you are outbid, and when an auction you’re watching is nearing the end.

Sellers, you won’t be left out of the action. As a seller you’ll be notified each time the price on your listing goes up with a neat push notification, and prompted  when a new bidder sends in a bid application.

 

 

Grab the app, never miss another opportunity and let us know what you think of the new app!

Free Escrow & Relistings

Earlier this year we announced two big changes for selling on Flippa!

Free Re-listing

We want to give you the best chance of selling on Flippa. Now, when an established website or domain auction isn’t successful you can re-list with a standard auction for FREE.

We recommend reviewing your auctions reserve, starting price and promotions when re-listing.

Note: effective November 2015, Flippa Websites still continues indefinite free relisting, while Flippa Domains has set a limit of one free relist per domain auction. The cost thereafter is $5 per relist.

Free Escrow

Flippa Escrow is a recent addition to the Flippa Marketplace, improving transaction experiences by providing a safe, reliable and cost-effective escrow service.

Save $$ – We know how critical safety is when transacting online – which is why we made Flippa Escrow free for everyone. Unlike other escrow services you pay no escrow fees to use the service (some transaction fees may still apply).

Safety – To ensure a service that is safe Flippa Escrow uses advanced fraud protection, military grade security and is fully licensed, compliant and covered. This means you can transact on Flippa with peace of mind.

Best Domain Parking Providers

Best Domain Parking Providers

What is domain parking?

When we refer to domain parking we are talking about monetising domains through platforms that create advertising pages displayed to search or direct type in traffic (for example see www.newyorkbroadway.com). Providers differ: some offer single page advertising, while others have two-click implementations, showing a keyword that re-directs to a secondary page of ads.

How many domains are parked?

In 2009 Verisign (2009, p5) found 24% of domains were single-page websites, which included construction banner sites, brochures or monetised parking pages (based on a study across 92 million .COM and .NET domains). Verisign (2006, p5) found this number decreased by 2% between 2006 and 2009 based on a 2006 analysis across 57.37 million .COM and .NET domains.

Parked Domains

Looking at unique domain name server records (where domains are directing traffic) for .COM domains we can estimate each parking providers relative inventory size (Flippa, 2015)

[ip4]{ “template”: ip4.barChart(), “parentElement”: “#kcal”, “data”: { “reader”: ip4.dataReader() .data([ {“x”: “Sedo”, “y”: 1215413 }, {“x”: “DNS”, “y”: 1151170 }, {“x”: “GD CashParking”, “y”: 912864 }, {“x”: “DomainSponsor”, “y”: 622329 }, {“x”: “ParkingCrew”, “y”: 397487 }, {“x”: “Fabulous”, “y”: 387690 }, {“x”: “Rook Media”, “y”: 266728 }, {“x”: “Afternic”, “y”: 154980 } ]) }, “d3”: { “yLabel”: “Unique Records” } }[/ip4]

Full list? download raw csv

Who is the best provider?

We were curious as to which parking platforms our domains audience trusted and utilized the most. Can these providers be deemed as the best domain monetisation providers? Our results are as follows:

1. Sedo Parking (example parked page)

2. Go Daddy CashParking (example parked page)

3. DomainNameSales (example parked page)

4. ParkingCrew (example parked page)

5. Bodis (example parked page)

6. Voodoo (example parked page)

7. DomainApps (example parked page)

8. DomainsSponsor (example parked page)

[ip4]{ “template”: ip4.pieChart(), “parentElement”: “#survey”, “data”: { “reader”: ip4.dataReader() .data([ {“x”: “Sedo Parking”, “y”: 22.83 }, {“x”: “GoDaddy”, “y”: 22.04 }, {“x”: “DomainNameSales”, “y”: 11.02 }, {“x”: “ParkingCrew”, “y”: 6.29 }, {“x”: “Bodis”, “y”: 5.5 }, {“x”: “Voodoo”, “y”: 5.5 }, {“x”: “DomainApps”, “y”: 3.93 }, {“x”: “DomainSponsor”, “y”: 3.93 }, {“x”: “Other”, “y”: 18.11 } ]) }, “d3”: { “yLabel”: “Flippa Users (%)” } }[/ip4]Don’t agree?  Have a question? Leave a comment below

 

[1] “Verisign, ‘Domain Brief June 2009 ‘, p5, Verisign.com. http://www.verisign.com/domain-name-services/domain-information-center/domain-name-resources/domain-name-report-june09.pdf

[2] “Verisign, ‘Domain Brief August 2006’, p5, Verisign.com. http://www.verisign.com/domain-name-services/domain-information-center/domain-name-resources/domain-name-report-aug06.pdf

[3] Flippa, 15th January 2015 ‘Data Analysis across all .COM nameserver records (raw file)

[4]  Flippa, January 2015, ‘Flippa User Parking Survey’

Flippa iOS Update – Never miss another opportunity

Flippa iOS Update – Never miss another opportunity

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Great design and functionality go hand in hand. Flippa’s redesigned your experience, making it easier to discover, watch and bid on your next opportunity. We are proud to announce version 2 of Flippa for iPhone and hope you enjoy it.

Download now via the App Store to access improvements like:

discover4

Discover listings using improved sort and filtering

discover

Add to your Watchlist with one tap

notifications

Join the conversation with an improved listing view

We have more exciting changes coming so stay tuned and keep an eye on our product changes.

So what do you think? What do you want to see included in our next update ? Leave a comment with questions or feedback!