George Moulos wrote a good post on negotiating that is worth a read for newer domain/website investors who might not have much experience when it comes to negotiating. Some of the points would strictly apply to website sales since it gets into sales evaluations and other sales related data.
Here are a couple points from the article with many more listed at the article on Flippa.
Know “The Walk Away” Point
Although the primary goal of negotiations is to reach a price agreeable to both parties, sometimes things don’t work out. If a seller has a fixed sales price, it is perfectly fine to bow out of a deal. Offer the highest price point you can afford and inform the seller about your final budget.
Suggest Additional Benefits
The price should not be the sole focus during negotiations, as you can use various ways to increase the value of a sale. If the seller refuses to lower the price, include additional assets in your contract to compensate for the high price. You can also push to include certain assets, such as office equipment, office furniture, and other valuable aspects, to balance out the sale.
Separate Facts from Emotions
Sellers may use emotional manipulation to tip the deal in their favor. However, it is imperative to make a decision based on objective analysis. Keep the facts at the forefront of making a deal. Think about the business as a long-term investment and stay informed of all the potential costs the purchase can bring.
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