The domain you want is taken. The owner wants $50,000. You think it's worth $5,000. Here's how to navigate the gap without getting robbed or walking away from a reasonable deal.
First: Is It Actually Worth Buying?
Before negotiating, calculate the alternative cost. What would you spend on marketing to overcome a worse domain? If the answer is "more than the asking price over 3 years," the domain might be worth it.
Understanding Seller Types
Professional Domain Investors
They bought the domain as an investment. They know market values, have time to wait, and negotiate often. Expect rational pricing based on comparable sales.
Accidental Owners
Someone registered it years ago for a project that never happened. They might sell cheap (they forgot they own it) or refuse entirely (emotional attachment).
Competitors or Blockers
Someone in your industry who registered it to prevent you from having it. Often not for sale at any reasonable price. Verify intent before wasting time negotiating.
The Negotiation Playbook
Step 1: Anonymous Approach
Never contact as your real company. Use a broker or generic email. Once they know you're a funded startup, prices triple. "I'm a small business owner exploring options" gets better initial quotes.
Step 2: Get Them to Name a Price First
Ask "Is this domain for sale and what's your asking price?" Their first number sets the ceiling. If they ask what you'd pay, deflect: "I need to understand your expectations first."
Step 3: Anchor Low (But Not Insultingly)
If they say $50K, counter at $5K-$10K. Not $500 (insulting) and not $25K (too close). The gap creates negotiation room. They'll counter, you'll counter, and you'll meet somewhere reasonable.
Step 4: Use Comparable Sales
Research similar domains sold recently on NameBio or DNJournal. "Similar domains in this space sold for $8K last quarter" anchors to market reality.
Step 5: Create Urgency (Real or Perceived)
"I'm also considering [alternative.com] which is available. I need to make a decision by Friday." Sellers respond to competition and deadlines.
What to Actually Pay
Single Word .com (Real Word)
Expect $5K-$50K for less common words. $50K-$500K for common words. $500K+ for truly premium (Bank, Home, etc.). If someone wants $10K for a real English word .com, that's often reasonable.
Two Word .com
$1K-$10K typical for moderate combinations. $10K-$50K for industry-relevant combinations. "CloudPay.com" might fetch $30K. "RandomWord.com" should be under $5K.
Country-Code Domains (.co.uk, .de, etc.)
Generally 50-70% less than equivalent .com. A $20K .com equivalent might be $6K-$10K as .co.uk.
When to Walk Away
If the seller won't engage in good faith negotiation after 2-3 exchanges, they're either not serious or have unrealistic expectations. Your time has value. Move to alternatives.
The Alternative Path
Sometimes a slightly different domain serves you better than an overpriced exact match. Check variations before paying premium prices for the "perfect" domain.
Using Brokers
Domain brokers charge 10-15% commission but add value for high-stakes acquisitions. They maintain anonymity, have negotiation experience, and handle escrow. Worth it for $20K+ purchases.
Trademark Lens checks domain availability across 15 extensions - find your options before entering negotiations on any single domain.