Low offers one receives for top level domains?

[Vision]

Example: I owned a domain valued at $90,000 and the buyer offered me $400. We negotiated and settled on $55,000.
2nd Example: I owned a domain valued at $45,000, the buyer made me an offer at $300. However, ultimately, that same buyer bought my domain at $24,000. I have other interesting examples.

Question: If you have sold $xx,xxx and $xxx,xxx domains, have you found it common that a buyer initially offering under $500 is very likely willing to buy your top level domain at a much, much higher value?

Thanks for sharing.

Mike

 

[Sarcle]

Example: I owned a domain valued at $90,000 and someone offered me $400. We negotiated and settled on $55,000. Another example, I owned a domain valued at $45,000, someone made me an offer at $300. However, ultimately, that same person bought the domain at $24,000.

Question: If you have sold $xx,xxx and $xxx,xxx domains, have you found it common that the person initially offering under $500 may very likely be willing to buy your domain at a much, much higher value?

Thanks for sharing.

Mike

Buyers will always try to get the best deal they possibly can on a domain. And sometimes they do. What I don't understand is that this is so shocking for many sellers.

What really amazes me is sellers unrealistic approach to selling. It's buisness, it's not personal. I have made several offers for domains I would like to purchase at sedo. Normally I do offer $200-$500 initally for a domain I want. The funny thing is their reactions sometimes, I've had people shoot back an offer of $1293290,324023904.234290 (literally.) When if they would have just came back with a counter of realistic porportions they probably would have made a sale. Domains mean different things to different people, when there is a bottom line to everything. The amount of emotional turmoil involved in some peoples expections is quite amusing. Pride is not necessary and only a hinderance when it comes down to simple facts. What are the numbers, ie overture, traffic, search results, and popularity, and ultimatly what you "can" sell it for.



My favorite transaction of all-time was when I e-mailed a domain owner for a price on their domain.

He said, "You know I really have never thought about selling it. But I would listen to any offer."

I shoot back a price initally of $500 dollars.

He then begins a rant of how this is such a great domain, blah blah blah and said he couldn't accept anything less than $250,000. This is on a domain that is realistically only worth a few grand.

Of course negotiations were over at this point. He wouldn't listen to facts, or numbers. The only thing that came down to it was he had owned the domain for 5 years and had become attached to it.

6 months later it expired, and I got for $60 on a drop. Sucker!!!

 

[britishbulldog]

Yeah but the problem lies within to many tyre kickers,being offered $100 for a domain worth thousands so i counter offer with a realistic figure and they offer me $20 more,i give them two chances and then cancel the negotiations just like everybody seem to do on sedo !

 

[Rarethings]

He said, "You know I really have never thought about selling it. But I would listen to any offer."

I shoot back a price initally of $500 dollars.

- This is the best. I have encountered the same exact situation countless times.

 

[britishbulldog]

which is a fair start but those who take the p*ss with less than $250 i dont entertain no more !

 

[007]

I've tire kicked with low $x,xxx offers on domains that anyone in their right mind would sell for $xx,xxx or higher and 90% of the time the people say yes.

Then a week later someone sends me an offer for $xxx...

I've had a person contact me asking if I was selling one of my domains with the claim "I will make it worth your while." I thought, ok, in that case, sure I'm interested. I asked him for his offer. He emailed back with an offer of $150.... :laugh:

 

[SouthernTn]

I made a $175.00 offer on a domain worth around $3,000 maybe. The guy replies and say "Are You F****** serious.. Please dont waste my time, this domain is worth a fortune and offers like that are disrespectful"


At that point I laughed and just went on and didn't bother to reply.. Those type of replies with that tone of attitude makes me not want to give that person anything.. I can always find better.. and always do


One time it turned.. I was looking to buy this website and the guy said $8,000 .. I figured ill give it a try and then I said $1,000 and he accepted.. Then I made $1,000 off it the first month.. cha-ching!

 

[WhoDatDog]

This is where it pays to have as much information as possible when making an offer. I don't think you should ever offer lower than $100 or $200 when making an unsolicited offer because that shows you are an amateur.

When I list my names for sale I often put $100 as the minimum offer. If the name is worth thousands then I still end up getting thousands, and I have generated a potential lead for future sales.

For names that are obviously worth high XXXX or more, you should never be embarrassed about offering $1,000. You will likely get a response of some sort.

I have a name.....northsideclothing.com.....I received a phone call one day from a young man who was starting a clothing business and the name of his business was Northside Clothing....he offered $50.....funny thing is that it was so outrageous that I almost begged him to be reasonable....but I just let it go.

It's the Wild West when it comes to domain names. I bought Microscripts.com at Snap Names and there is a full-functioning site called Microscripts.net......the guy basically thought I was crazy to think that he would want the dotcom......he offered $10 (more of an F You statement I think).

Those are the bad stories....the good ones I'll keep to myself. The cat-and-mouse game is kinda fun most of the time.

 

[droplister]

I asked a guy if he ever wanted to sell, xxxxxxxx.com, what would his asking price be. And the reponse came back at 3,000,000 and a paragraph talking down to me about low offers and such when all i initially asked for was his asking price, sent that guy a piece of my mind.

I personally dont bid $100 for a $100,000 domain, but if a domain is worth something like <$3,000, Ill make a starting bid of $100-$300. this is for sedo, etc.

But if i were emailing a domain owner I ask them for their price and if its outta my range, i tell them and move on

 

[Domagon]

I too have sold numerous domains, including some in 6-figure range, in which offers started in the low xxx.

What I often look at is the amount of gapping ... the larger (and also fluctuations of) the gap from one offer to the next, the more room there probably is to negotiate; the top hasn't been reached.

Negotiating is an art - and the key beyond technique, etc is knowing what one has ... one can't expect someone to pay top-dollar, if the seller themself doesn't exactly know / can't convey the value what they are selling.

Ron

 

[jaik]

hi guys,
how does one sucessfully negotiate a offer?
what if i have a name worth minimum xxxx? and the buyer offered high xx or low xxx
how should we make counter offer
thanks,
jaik

 

[maroulis]

I really depends, I believe you know the value of your domain. If it's first offer and it's silly I'd say counter-offer with what you believe is the value + 20/30% slack so you can negotiate your way down (as usually the case)

SM

 

[sasquatch]

The funny thing is their reactions sometimes, I've had people shoot back an offer of $1293290,324023904.234290 (literally.)

Why would you expect a reasonable counteroffer, if your initial offer was insulting?

What many lowballers fail to realize is that Sedo sellers are obviously at Sedo because they know, or more likely believe to know, the (very arguable) true value of their domains. So sending $100 offers on xx,xxx domains at Sedo is largely counterproductive because the sellers are "educated".

Also I noticed that many amateur domainers have fragile egos and get offended for very wrong reasons. Just because the seller counteroffered with $1293290,324023904.234290 it doesn't mean you should stop the negotiations or offers, if the domain you are pursuing truly means something to you. Of course most of the time you're looking to get a "good deal", or to buy because you think you can flip it or sell it for more down the road, which only proves that you aren't the type of buyer that Sedo seller is waiting for.

 

[LarryWentz]

I must admit I get upset as well when I get lowball offers ($xxx) on higher value names that I have already received 5 figure offers on. My first thought is "what a dumba__!" to be honest and I try to cancel negotians ASAP.

I am surprised though (as pointed out by others) that these lowball offerers sometimes ended up paying out some pretty good ching. I think I may change my initial attitude to lowball offers due to the facts posted. The reality is that I am lowballing a portion of my names in the domain name forums so I guess I am partially responsible for my low offers from the domainer crowd probably.


Larry Wentz
www.AffiliateNetwork.org
www.MultipleDomainHosting.net - Host Unlimited Domains

 

[barefoot]

We should try to realize that not everyone who makes offers on our domains is as educated in domain valuation as we are. People who aren't involved in domaining often don't see any value difference between a name that can still be hand-regged for $7 and a name that a seller is asking $xx,xxx for. They might think the SELLER is out of his/her mind when asking for thousands for a domain name!

Making An Offer
---------------
Let's assume I'm new to domain names. I want to launch my first website and need a domain name for it. I open a browser and type in a domain name that I'm interested in using for my new site. I see that there's already a site there, but up in the right-hand corner of the page it says, "This domain is for sale - click here". Great! I click, and up comes a Sedo listing. I look for the price. Everything for sale has a price. Hmmmm.... I don't see a price. Wait -- it says, "Make offer". Make offer? OK. What should I offer? I guess $100 seems fair. What can a domain name possibly cost?

If I get a reply at all, it might be something like "Are you out of your $#@!%$ mind?? This domain is worth $xxx,xxx!!! You must be some kind of moron!!"

So how should a domain-uneducated person react to this type of response? Some people will simply go register the hyphenated version of the domain for $7 instead of paying thousands for the non-hyphenated. To these folks, there isn't really any difference in the 2 names -- "not having a hyphen makes a domain worth thousands more ????"

Is The Domain Really For Sale?
----------------------------
I have made offers on Sedo where no response was given at all. Even after I make $xxxx offers for domains that I felt were worth that. People seem to want to hold out for even "better offers". Do you even know what you would accept for your domain name? Or is it a vanity thing -- you just like watching offers come in for your names but have no intention of making a sale. Or you're just waiting for that "million dollar offer". If that's the case, then the domain really isn't "for sale" IMO. If something is "for sale", there should be a price tag on it. Most things that are for sale have a price tag unless they're at auction. And at auction, unless there is a reserve that's not met, the item sells for the highest bid. Simple.

Uniqueness Of Domains
---------------------
Domains are unique in that there is frequently no price when they're listed for sale. It's always, "Make Offer." Hmmm.... When you go to a store, items are priced. You buy an item for whatever price is asked. When you buy real estate, there is an asking price. You are free to purchase the property for the asking price or make a counter-offer. But at least you know what amount would be acceptable to the seller. When you purchase rare items such as art or coins or books, usually at auction, price is determined by the highest bid, but a reserve amount can also be set which indicates the lowest amount a seller would sell for.

But domain names are unique -- literally. Each one is unique, and the current method of selling them is also unique. "Make Offer". "Maybe I'll reply to your offer, maybe I won't. But yes, the domain IS for sale!!"

Making Offers
-------------
"Make Offer".

OK... $100.

"WHAAAAT?????? ARE YOU OUT OF YOUR FREAKIN' MIND???" (Seller is wide-eyed, shaking violently and foaming at mouth.)

Well, you said "make offer" so I did. Why the odd reaction?? You listed no price or price range, so I'm just testing the waters to see if you'd bite. I didn't expect you to rip my head off instead. Aye yi yi...

Uneducated Sellers
------------------
Maybe the seller would sell for the lousy $100 that I offered. Who knows? Some buyers are uneducated about domains, but some sellers are too! Ya think? Maybe a seller new to the business has a truly valuable domain without realizing it, and thinks $500 for it is a great deal! Or -- maybe a seller new to the business has a lousy domain full of hyphens, numbers, and is longer than the Nile River, and scoffs at $xx offers because the domain is worth $xxx,xxx or more to that seller. This happens all the time, as you know.

If I go to a car lot, and on the window sticker it says "Make Offer". I offer $100 for a 2006 vehicle. Most people realize that a $100 offer for a brand new vehicle is absurd. But they also realize that offering $500,000 for a 2006 vehicle is also absurd. Why? Because we already have some knowledge of the car market. We see asking prices for cars in the paper, on window stickers, in magazines and books, and online. We know their value for the most part, and can check it out more thoroughly.

But a lot of people have NO idea what domains sell for, especially "used domains" in the aftermarket. GoDaddy puts sexy ads on TV telling us that we can get BRAND NEW domain names for $6-7 or whatever. So when a domain reseller tells us that our $100 offer for their (used) domain is ridiculous, and that the domain is worth thousands, people can easily become confused, or even suspicious that someone is trying to defraud them.

Guessing Games
----------------
I don't like trying to guess what a seller wants for a particular domain when the seller doesn't bother to even acknowledge my offer. So folks, please try to answer as many of your offers as possible - even ones that seem to be low-balls - with a counter-offer. Even if your counter is ridiculous, it's better than no reply at all. And if you counter (because right now at Sedo, if you reply you're forced to include a counter) simply include a note that states something to the effect of, "Thank you for the offer but I'm afraid I can't accept it. If you'd like to make a higher offer, please do so." Either that or just create a minimum offer in your listing.

Waiting Around
--------------
If I want to purchase your domain, I'm not too crazy about waiting around for days or weeks for a reply, having no clue what's going on. Did you even get my offer? Are you on vacation? Are you insulted by my offer? Are you negotiating with someone else for this domain at the moment? What's going on? Don't leave me hanging!

Common courtesy goes a long way. I've been low-balled myself but if someone takes the time to make an offer for one of my domains, I always take the time to reply to the offer, one way or the other. Let's try to worok with ALL the people in this marketplace, not just the educated or experienced ones. Is there a really good "Domain Aftermarket 101" site where we can point folks to go learn a little about the domain aftermarket?

 

[sasquatch]

We should try to realize that not everyone who makes offers on our domains is as educated in domain valuation as we are.

I suspect that majority of offers on Sedo are made by other resellers "testing the waters".

People who aren't involved in domaining often don't see any value difference between a name that can still be hand-regged for $7 and a name that a seller is asking $xx,xxx for. They might think the SELLER is out of his/her mind when asking for thousands for a domain name!

Exactly, but that's also my point. If the "people who aren't involved in domaining" don't know the potential or truer value of the names they make offer on they shouldn't be surprised when they receive a$1293290,324023904.234290 counteroffer, or when they don't receive a reply at all. Ignorance is a two-way game.

So how should a domain-uneducated person react to this type of response? Some people will simply go register the hyphenated version of the domain for $7 instead of paying thousands for the non-hyphenated. To these folks, there isn't really any difference in the 2 names -- "not having a hyphen makes a domain worth thousands more ????"

That is perfectly alright because the sellers of $xx,xxx names certainly don't care that you would rather spend $7 as opposed to say $xx,xxx on the domain for your "website".

I have made offers on Sedo where no response was given at all. Even after I make $xxxx offers for domains that I felt were worth that. People seem to want to hold out for even "better offers". Do you even know what you would accept for your domain name? Or is it a vanity thing -- you just like watching offers come in for your names but have no intention of making a sale. Or you're just waiting for that "million dollar offer". If that's the case, then the domain really isn't "for sale" IMO.

Agree!

If something is "for sale", there should be a price tag on it. Most things that are for sale have a price tag unless they're at auction. And at auction, unless there is a reserve that's not met, the item sells for the highest bid. Simple.

Disagree. See the response below.

Domains are unique in that there is frequently no price when they're listed for sale. It's always, "Make Offer." Hmmm.... When you go to a store, items are priced. You buy an item for whatever price is asked. When you buy real estate, there is an asking price. You are free to purchase the property for the asking price or make a counter-offer. But at least you know what amount would be acceptable to the seller. When you purchase rare items such as art or coins or books, usually at auction, price is determined by the highest bid, but a reserve amount can also be set which indicates the lowest amount a seller would sell for.

But domain names are unique -- literally. Each one is unique, and the current method of selling them is also unique. "Make Offer". "Maybe I'll reply to your offer, maybe I won't. But yes, the domain IS for sale!!"

Perfectly acceptable since domain values are often times tied into subjective perceptions and individual tastes and business/internet plans. "Make offer" is perfectly acceptable, in fact, often times people say that (overused and wrong cliche experession) domains are only worth what someone else's is willing to pay for them, so that said, I see no problem of having a buyer making a first offer. So "make the damn offer" and see what happens. If nothing happens than you know where you stand at.

Maybe the seller would sell for the lousy $100 that I offered. Who knows? Some buyers are uneducated about domains, but some sellers are too!

No way that the sellers on Sedo are so "uneducated". In fact Sedo sellers will sell domains for $100 ONLY if those domains are: 1) truly worth regular fee 2) truly worth about $50 3) stolen

There's no way in hell that obviously valuable domains could be bought on Sedo for $100 (or anywhere else for that matter).

Ya think? Maybe a seller new to the business has a truly valuable domain without realizing it, and thinks $500 for it is a great deal!

Again, the seller didn't appear on Sedo by accident. Something led him to the world's biggest domain aftermarket place. So if the seller has listed his domain at Sedo, then they already either know what they've got, or more often think that they've "got" more then they do. Either way they won't sell true valuables for $100 or $500.

Or -- maybe a seller new to the business has a lousy domain full of hyphens, numbers, and is longer than the Nile River, and scoffs at $xx offers because the domain is worth $xxx,xxx or more to that seller.

Much more likely

So when a domain reseller tells us that our $100 offer for their (used) domain is ridiculous, and that the domain is worth thousands, people can easily become confused, or even suspicious that someone is trying to defraud them.

Again, who cares what they think? You're supposed to sell your valuable domains to the highest offers, not the clueless offers.

I don't like trying to guess what a seller wants for a particular domain when the seller doesn't bother to even acknowledge my offer.

If he doesn't bother to respond at all, in vast majority of cases that means he is not interested. In that case you can either up the offer or move on. If you move on - it only means that the domain in question wasn't so valuable to you after all, which is the kind of buyer that sellers with valuable domains want to weed out in the first place

 

[Vision]

I enjoyed & appreciated everyone's analysis.

Mike

 

[Focus]

nice thread

 

[aldwin]

I understand that you get bored when people makes lowball offers, but what I don't understand is the people which doesn't reply to good offers.

Last week I made an offer on Sedo for a domain with a minimum offer of $1,000

I offered $1,000 and no reply.
I expected at least a bit of negotiation!

 

[typeins]

I've had people offer me .10 cents and their soul haha.. I get some rippers on a daily basis.