Contra Deals Can Be Win / Win

A few years ago, I did my first ever “contra deal” on a domain name.

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”. 🙂

Next Time

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!

 

3 thoughts on “Contra Deals Can Be Win / Win

  • September 2, 2015 at 11:06 am
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    Swapping domains is also something to consider if the other party is a domainer.

    • Ned O'Meara
      September 2, 2015 at 12:16 pm
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      Just as a matter of interest David, have you ever swapped any domains? I’ve done it once – worked out well.

      • September 3, 2015 at 2:07 pm
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        I was approached about a domain by a domainer and wasn’t really interested in cash but suggested a swap for one of their domains.

        I knew he had bucket loads of them.

        He offered up a selection and I chose one I really liked.

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