Case: Selling something faster when you are already at a profit
I recently sold 2 domains in an escrow transaction to a Chinese buyer. The deal was swift and sweet. It was my Escrow transaction after several months and I felt happy that some of the blocked money was back to my wallet.
The domains were bought in July 2016. I made a $325 profit on this sale, but more importantly, as I said before, I wanted the cash flow.
Here are the things I observed from this swift and sweet deal:
1) Offer your domains at lesser than current market price:
Many people fail in this aspect. They either quote higher or try to ask the rates they see in the pricing charts. Now realize, if you are quoting same as you see in the pricing charts, why would one buy from you instead of going to the auction sites? This is why you should offer the domains for a discount.
There are two notable sites where you can check for current market price. One is NameBio.com and the other is ShortNames.com Namebio.com does not report sales below 100 USD; Shortnames.com does.
A screenshot from NameBio.com showing the recent LLLL.com sales
A screenshot from Shortnames.com showing the recent LLLL.com sales
So, when you sell something, check its recent sale prices at these sites and arrive at a price that it would sell for. Simply fix an average price based on the recent sales unless your domain is not some kind of premium.
Now, the important point you need to consider is these market places (Namejet, Godaddy, Ename, Pheenix, Sedo etc.) take a cut from the seller which often ranges from 2 to 7% for the Chinese market places and 10-20% for the Western market places. Why not pass on this benefit to the buyer? And you make a sale pretty easily!
2) Buyer will still try to negotiate:
Well, you have offered your domain at an attractive price. You still see a response asking for a slight price adjustment, asking to bear the escrow fee either fully or partly. How to tackle this?
Plan ahead of these things and add these slight adjustments at your initial offer itself. Anticipate the buyer will ask for reduction and to bear the escrow.
Do not agree for all the things the buyer ask for but do something in his favor. He is now interested in dealing with you! You had already done your math before, and you are happy too!
3) Offer all payment options in one response:
We might find one Escrow service is cheaper than the other and will try to reason with the buyer to use an Escrow service that is cheaper. You will lose time here for communication back and forth and probably would get the buyer no more interested in the deal, or say, the market has gone down slightly since the start of your deal.
The solution for this is to offer all your email IDs of all the Escrow services you use in one single response and have the buyer choose which one to go for. Imagine you kept saying Payoneer.com but what if the Chinese buyer is hearing that name for the first time? Are you expecting him to open an account to save your fees and also end the deal comfortably?
Again, you can plan ahead of this in the pricing as we discussed in #2 and it will not be hard on you even if the buyer chooses the one with the highest escrow fee. You got the point!
4) It is better you initiate the Escrow:
Chinese buyers are not too comfortable with English. It is better you initiate the Escrow because you could maneuver it better. You could avoid delays due to errors. Also, you could control the inspection period.
Be sure to set the inspection period to 1 or 2 days only. Inspection period means you are not going to get your money even after the deal for the days it is selected here. There is a method to even bypass this, discussed in #6.
5) Buyer might use an email ID different from his Escrow email ID for transfer of domains:
Now this is tricky! He might be a genuine buyer. We all have different email IDs and we use them differently. My buyer wanted the domain in 22.cn and he had a different email ID there. I could have asked him to change the email ID there to match the Escrow email or vice versa, but I might have lost time and the deal.
(IMPORTANT: Always send the authorization code to the escrow email ID.)
I asked him to send me a reply to the authorization code email I sent to him in his escrow email ID in this format:
Thanks for the authorization codes for ______ and ______ (Transaction ID: _______ Escrow ID: _______)
I will be transferring the domain names to 22.cn and my email ID there is _______. My account ID is ________.
Please approve the emails you receive from 22.cn for the transfer.
(Important: Don’t try this with highly valuable domains, insist email change or keep your Escrow service in loop.)
No, I didn’t ask the buyer to CC the escrow company. I knew that would jeopardize the deal, that is, if they ask him to change his email, blah blah! Say not!
He replied to me in that format from his escrow email ID and now I had the proof if something goes wrong!
6) Offer your QQ, WeChat IDs to the buyer:
As you can see in the escrow image, GoDaddy took 4 days to transfer domains to 22.cn even after I accepted transfer from the GoDaddy panel. We both had thought GoDaddy transfers are instant, but that was not the case here. I got an email from GoDaddy transfer-verify department on the 4th day and I had to reply them to get the domains transferred.
I had given my QQ details to the buyer once he submitted funds to the Escrow and that helped us to stay in touch while the transfer was pending. You need to understand most of the Chinese buyers are not very English savvy and are not very keen on dealing with foreigners. He could have panicked and cancelled the transaction at Escrow. All he needed was to give a call. But there was engagement between us through QQ and it helped. Having your buyers in your cellphone could also get you future deals.
7) Request the buyer beforehand to approve the Escrow transaction as soon as the domain is transferred:
So, the payment is at Escrow. The domain is gone. Now the next step is getting the buyer to approve the Escrow transaction. In my case, the buyer approved it as soon as he got the domain and hence the inspection period was ended immediately. I had asked the buyer to do the same while we were waiting for the domain transfer. He did that without hesitation.
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