How do you negotiate the purchase of a domain name?

Question

I see a squatter holding a domain name I'm interested in.

• How should I negotiate with them in purchasing it?

• What should I not do?

• Who should make a $$ offer first, them or me?

Answer 1

There are a lot of facets to this question. Firstly, how are you defining 'squatting'? Maybe they're just parking it. Did they set out to poach the domain in an attempt to cash in on it when your group/company/project needed it?

If they're TRULY squatting, you have some legal options you may want to explore. Barring that, don't make the first offer. You'll either set it WAY too low and be working hard to recover, or WAY too high and they got what they want.

Secondly, what is your plan if you don't secure the domain? Have you considered alternative domains or are you tied to this? If tied, see my first point. Legal options might not be terrible but it'll probably be cheaper to buy them off.

Let me know how it goes.

Answer 2

The first step is decide how much you are willing to pay for the domain. In my experience domain owners will do everything they can to get you to make the first offer. So, make an offer. I will start well below what I am willing to pay. Some owners will come back with a counter offer, some will just complain that your offer is too low. If you want the domain, it's a sellers market. You have to play the game. If they won't negotiate, offer what you are willing to pay. If they accept, great. If they don't accept, walk away. It's really the same process as buying a used car. Know what you are buying, and what it is worth. And know when to walk away.