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When To Rake In the Pot vs. Pushing All-In On Domain Sales

February 21, 2013

Recently I worked on a negotiation with a buyer for a domain I had acquired about six months earlier. During the negotiation which lasted several weeks, I was bouncing some of my negotiation strategy and thought processes off a good friend of mine, to help clarify my thinking, and to elicit feedback to ensure I was being consistent in communicating value to the end-user.  All in all it was quite helpful for me.

After closing on the domain, my friend had this to say, and although he is not a domain investor nor has he ever sold a domain before, I thought the analogy was apt and contained some good kernels of wisdom …

The whole process of trying to understand what your client is thinking is – as you expressed it – so very similar to poker.  And once you have that in mind, you should act – as you did – like a poker player.  the real pros know when to push and when not to.  but more importantly, they know when to make the call and gobble up whatever pot is available.  it’s those dopes who always try to chase the biggest pot ever that all ultimately end up with nothing.  all their money goes to the smart players along the way, who chip, chip, chip away at his stack with smart moves.

selling [domain redacted] for [price redacted] is the smart move.  it’s [price redacted] more than you have right now!, and it’s gotta be an incredible return on your initial investment.  it’s not the jackpot of all jackpots, but then again, those don’t exist.  it’s like winning the lottery, that’s just dreaming.  this is business, and just like poker, business is all about taking what you can, when you can, and not leaving anything on the table.

so take this [price redacted], and use it to build your next move.  whether it’s buying more properties, more expensive properties, or just having the roll to back up your stones for your next set of negotiations!

There are many ways to approach a domain sale, and as with poker, I believe everything is situational.  So while I don’t claim the above to be the gospel truth in every case, I doubt that there is a gospel truth for every sale, or for everyone in every situation.  This is simply one perspective that you may or may not find helpful to consider.

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