Anton Helios
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I'd like to open discussion and receive your expert opinion on a sensitive topic - high-value domains negotiation and acquisition.
I consider myself an experienced negotiator, with a significant list of business deals, acquisitions and negotiations, 20+ years of experience. However, in domain negotiations I faced somewhat unusual patterns of negotiations that I cannot fully understand and I'd like to invite you to explore it here.
1.Arrogance
I'm noticing that all sellers are showing quite arrogant approach to price discussion. With anchored price of 500-1M I receive a link with top deals with eth.com , ava.com and nft , which based on quite specific domain request cannot in any way serve as an anchor or price validation.
When I'm inviting to open discussion pointing it out, asking for validated medium market prices, without any low-balling or assertiveness, they react quickly and aggressively, saying that they don't have time for this. Obviously they do have time, as negotiating deals is their business and full-time job. However, they refuse to do that. I never encountered such an aggressive tactics from anyone in any industry, especially in such a highly-non-liquid, one buyer, type of asset . I refuse to believe they receive hundreds of offers.
2.Public anchor
Domain was sold previously, probably to the current seller. There's a clear validated market price on godaddy. Of course I understand, that it doesn't mean that the domain will be sold at a 100$ profit. But what I receive is 20x-30x. When I point it out, they say that they bought it at a much higher price, but refuse to provide any proof with the same f-off tactics. We all understand, that no seller of such level would ever buy the domain privately, leaving such a public anchor. However, it doesn't concern them.
Market validated, medium market price and appraisals are at the foundation of any acquisition, of any negotiation on any level. If a nearby house in the same neighborhood of a same size sold for 200k, you cannot ask for 6M. Same applies to acquisitions of almost any asset. It even applies to the unique assets with no BATNA, no alternatives. With domains its hardly true. Company can live without .com domain. 600k can be reinvested much more effectively in 99% of cases.
Questions:
How can you explain such phenomena ?
How to approach such deals and people ?
What is the leverage and tactics ?
Please share your thoughts.
I consider myself an experienced negotiator, with a significant list of business deals, acquisitions and negotiations, 20+ years of experience. However, in domain negotiations I faced somewhat unusual patterns of negotiations that I cannot fully understand and I'd like to invite you to explore it here.
1.Arrogance
I'm noticing that all sellers are showing quite arrogant approach to price discussion. With anchored price of 500-1M I receive a link with top deals with eth.com , ava.com and nft , which based on quite specific domain request cannot in any way serve as an anchor or price validation.
When I'm inviting to open discussion pointing it out, asking for validated medium market prices, without any low-balling or assertiveness, they react quickly and aggressively, saying that they don't have time for this. Obviously they do have time, as negotiating deals is their business and full-time job. However, they refuse to do that. I never encountered such an aggressive tactics from anyone in any industry, especially in such a highly-non-liquid, one buyer, type of asset . I refuse to believe they receive hundreds of offers.
2.Public anchor
Domain was sold previously, probably to the current seller. There's a clear validated market price on godaddy. Of course I understand, that it doesn't mean that the domain will be sold at a 100$ profit. But what I receive is 20x-30x. When I point it out, they say that they bought it at a much higher price, but refuse to provide any proof with the same f-off tactics. We all understand, that no seller of such level would ever buy the domain privately, leaving such a public anchor. However, it doesn't concern them.
Market validated, medium market price and appraisals are at the foundation of any acquisition, of any negotiation on any level. If a nearby house in the same neighborhood of a same size sold for 200k, you cannot ask for 6M. Same applies to acquisitions of almost any asset. It even applies to the unique assets with no BATNA, no alternatives. With domains its hardly true. Company can live without .com domain. 600k can be reinvested much more effectively in 99% of cases.
Questions:
How can you explain such phenomena ?
How to approach such deals and people ?
What is the leverage and tactics ?
Please share your thoughts.