Be Patient With End Users
When you are selling a domain name to an end user buyer, you need to exercise patience. There are a number of opportunities for deals when making deals with end users, especially if you are doing a deal with a large or publicly traded company.
I want to discuss the three areas that cause the most delays when selling a domain name to an end user buyer. Sometimes all three of these areas cause extensive delays. The key is to not get upset about these delays and to expect them before becoming frustrated, as the decision maker may not be able to cut through the red tape any quicker.
1) Contract negotiations. I would say that all large end user companies have legal departments, although that is an educated guess. Many do not deal with domain names often, so either drafting or editing a domain sale contract can be a long process. If you want to help move the process along, I recommend paying a domain name lawyer to draft the sales agreement and use that lawyer to review changes requested by the buyer.
2) Payment. Just like large companies have legal departments, most also have accounting departments as well. Invoices need to be signed off by various parties, especially if the sale price is 6 or 7 figures. Oftentimes, a big sale to you is a small deal for them, and it can be difficult to get the invoice prioritized. The good news at this point is that you should have a signed contract with legal recourse if the company doesn’t pay.
3) Domain transfer. Nothing is more frustrating than agreeing to a deal, negotiating contract terms, agreeing to escrow, having the payment submitted, and then running into trouble with the transfer. Many companies aren’t familiar with how a domain transfer works, and oftentimes, the marketing or other manager who acquired the name doesn’t know the tech person very well. It can be a pain trying to explain how a transfer works to someone who will then have to explain it to someone else. This is especially time consuming when the current or receiving domain registrar takes time to send auth codes or release the domain name.
The most important thing you can do is keep your cool, despite the chance for a frustrating experience. When you are negotiating with an end user buyer or trying to sell a name to an end user buyer at a large company, you should know the sale process might not be smooth.
Sometimes, a domain sale negotiation is time consuming and can be a bit frustrating. Oftentimes when selling to a larger company, this is actually the easiest aspect of a deal.
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