Highest first offer you ever received?

[Raider]

The amount is irrelevant IMO.

If you bought a name for $10K and get an offer for $11K vs buying a name for $10 and get an offer for $1K.
Which offer would you rather get?

I would rather take the $11K offer, Why? because anyone who makes an initial offer of $10K-$11K for a domain, is more than likely willing to pay up to 2-3 times that amount... So that $10K investment gave me a net return of $20K, not bad... And the $10 investment? 3K if I'm lucky.

Any substantial offer is extremely relevant, when your receiving x,xxx or xx,xxx offers on a domain, it's telling you the party on the other end is more than just interested.

 

[LarryWentz]

Most of my offers start @$500

I have received a huge starting offer on a name I have no interest in selling - I politely declined...Then they more than tripled their offer and said that was the max - and I declined with no counter as well (just did not tell my wife on that one - she would have killed me for not selling or even negotiating).

LOL - I've also been guilty of "not telling the wife" on high offers on a name (which I turned down).

 

[Theo]

Using $10K to buy $10 names and wait for my chance. We talk about ROI.

ROI is one thing for stats purposes, but the bottom line is you want more money in your pocket

 

[Raider]

Yes, but the person offering usually doesn't know what you paid for the domain.

And they don't care either... The only time it's relevant is for the seller to factor what he paid into the selling price.

 

[matj]

First offer was $4000 for a LLLL

 

[grcorp]

ROI is one thing for stats purposes, but the bottom line is you want more money in your pocket

Exactly.

This is exactly what the problem with Johnn's example is. Sure, it stands to result in a higher offer as negotiations go on, as Raider had pointed out - but the facilitating costs could stand to completely wipe out your 10% profit.

Let's look at both scenarios, assuming they were done through Sedo at a 15% commission;

1. Name bought for $10. Offer received for $1,000. Offer accepted.

$1,000 - 15% = $850. Bottom line: $840 profit, 8,300% ROI.

2. Name bought for $10,000. Offer received for $11,000. Offer accepted.

$11,000 - 15% = $9,350. Bottom line: $650 loss, -6.5% ROI.

Providing an alternative, if it were to be done through Escrow.com, standard service would cost $32.50/3.25% of your profit, and $178.10/17.8% of your profit.

Still pretty slim margins on the $10,000 name, if you ask me.

 

[Theo]

Max, when you accept an offer at $11k for a domain acquired for $10k, you already factor in the final price. No person in their right mind would take an obvious loss. We're assuming the prices listed in John's example are net, not before commission.

 

[A D]

Also, Raider stated clearly that the 11k is just a starting point not the final price she or I would accept.

There is a direct correlation between opening offers and the likelyhood you will get a much higher price for a domain sale.

I am with raider, I take the 11k starting offer and work it higher, by the time I am done it would be a 50k sale.

For the record my highest opening offer was 400k... and it sold for much more than that.

Adam