What do I mean by “contra” ? It’s where you do a deal and take payment by way of a cash component – and the balance by a calculated amount of the service or commodity that the buyer offers.
It’s a great way to maximise the value of a domain name and get a deal done – particularly when the buyer can’t or won’t pay your asking price (or close to it).
- 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.
Being Creative !
I was reminded of the above deal yesterday when I was doing a deal to sell a keyword “food” domain. The buyer was a baker from Western Australia, and as we negotiated over a few emails, I threw in a request for some “contra” (to try and get the price to a point where we were both happy). His shops baked some fine products – and my mouth was watering at the thought!
We didn’t end up doing a “contra deal” because of the tyranny of distance – but had I been in Perth, it would have happened. The baker was quite keen as well! However, we ended up doing a “normal deal”. 🙂
When you next negotiate a domain sale, perhaps remember this story. It may well help you get a deal that you otherwise wouldn’t have got.
Most business people could probably offer some form of “contra”. And I bet they would welcome it too!
Lawyers, accountants, beauty salons, hairdressers, massage therapists, motor mechanics, web designers, hosting companies, social media experts – the list could go on for ages. 🙂
As always, all the best for your online success!