Cash is not always king – try barter or contra!

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Let’s face it – sometimes a buyer does just not have the cash on hand to purchase a domain name for what it is truly worth.

A lot of sellers will either decline out of hand – or just accept a lower offer to get a deal done. But they are potentially robbing themselves.

Have you thought of negotiating a cash plus goods or service deal? It can be a win / win.

Example 1

I was reminded of this when talking with a domain investor friend in the past few days. He was dealing with a startup who wanted one of his domain names. The price offered was reasonable, but the startup did not have all the “readies”. So my friend asked him if he had anything to trade. As it turned out he did. A motorbike! So after some photographs and due diligence, a deal was struck! What a great win / win. 🙂

Example 2

Going back to a deal I did in February 2016 (and reported on Domainer).

Just recently I had some legal work done for me in Townsville by a mate. Someone who I have sold a few domains to over the last couple of years.

Being a great believer in “bartering”, we came to an arrangement where I gave him a premium legal domain (absolutely ideal for his business) in exchange for his knowledge and expertise. No cash changed hands.

To me that is a great win / win.

And I reckon that every day there is an opportunity for all of us to look at “bartering or exchange” as an additional way to do business.

Example 3

Back in 2015, I did a fantastic contra deal with a hotel operator. I wrote about it here.

The domain I sold was a really good one in the hotel accommodation niche – two words with high search. The buyer was a boutique hotel provider with properties in most State capitals.

The deal that we struck effectively ended up as a low 5 figure sale – a nice cash component; and a reasonably large credit towards hotel accommodation (based on best internet rate at time of booking). Tip: never agree to do this based on “rack rate” !

I transferred the domain to them straight way, and the contra was delivered over a 10 month period (without a hitch). Nice people to deal with.

The moral of the story

Think twice before dropping your price!

Comments?

If you’ve had any similar experiences, could you please share?