Dealing with the buyer’s limited budget

domainking131

Forum Leader
Staff member
When negotiating on a domain sale, one of the most challenging moments is when the interested party declares the domain as being beyond their budget.

Depending on the domain’s valuation, you might have the ability to offer the asset at a discount.

However, it’s best not to do that right away, or even at all, and here’s why.

First and foremost, your goal is to maximize your return on investment.

You can only sell the domain once, and your asking price might eventually arrive from a different party, other than the one whose budget doesn’t stretch that far.

There are times, however, when a tweaked offer can increase your chances of completing a sale, and there are a couple of ways to achieve this.

An option would be to offer the domain with a payment plan. Lease-to-own options can materialize via Escrow.com, that offers such plans at a minimal cost.

Dealing with the buyer’s limited budget can also be handled by seeking equityin their planned ventures.

Quite often, start-ups or small ventures don’t have all the capital they need up front, but getting the perfect domain can take them to the next step up: getting venture capital. A great example of this was my sale of 100.org.

Depending on your ability to demonstrate the value of the domain to the buyer, you might be able to convince them to shift funds from a different part of the business towards the domain’s acquisition.

Emphasize the fact that domain acquisition costs are valid business expenses, at taxation time.

Lastly, you can offer additional services into the deal. These can range from professional services such as development, design, branding or SEO, to sharing the news of the upcoming service within your community.

A limited budget is also an opportunity to sharpen your negotiation skills.Don’t opt for one-liners, have a conversation with your buyer – they have the money, and you have the domain.


This article was originally published on Acro.net
 

Tigger

Member
The limited budget buyers should only be dealt with as a last resort. Not being mean, but you said that maximizing your profit is the top priority. If you can't make the profit anywhere else, then something is better than nothing.
 

Swisslist

Member
When a buyer starts a negotiation with the price side of the deal, you know it's coming. whatever price it is that you set, they will likely say it's out of their budget.
 

Delilah

New Member
I agree with Tigger. The whole point of domaining is to maximize your ROI. If you give the buyer a big discount, they may keep the domain for a few months or years, then they can sell it for an even higher price. In my opinion, it's not a fair option.
 
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