NameSilo
Bob Hawkes

Setting The Minimum Offer Value For A Domain Name

Views:
4,593
Comments:
27
By Bob Hawkes, Nov 18, 2020
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What minimum offer would you set for a name with a $2000 buy-it-now?

  1. less than $100

    17 votes
    5.2%
  2. $100 to $200

    49 votes
    14.8%
  3. $200 to $800

    86 votes
    26.1%
  4. $800 to $1200

    92 votes
    27.9%
  5. $1200 to $1600

    49 votes
    14.8%
  6. $1600 to $2000

    37 votes
    11.2%
Total: 330 vote(s)
  1. poweredbyme

    poweredbyme Webmaster & Entrepreneur VIP

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    Multiple prices = Absence of price
    I set a single price if I set price.
     
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  2. MediaCode

    MediaCode MediaCode.com VIP ICA Member

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    Our policy across our entire portfolio is to not accept any offer below 80% of our posted BIN price.

    Think about it: if you had your home up for sale for $500,000, would you take any offers as low as $350,000 seriously? No, because that's only 70% of your posted price. That's a low ball offer. That's someone trying to feel you out to see how desperate you are as a motivated seller because you need cash.

    If we have a $5,000 BIN price posted for one of our domain names, we will only consider submitted offers above 80% of that amount, or $4,000. That's the minimum offer that a buyer needs to make to qualify themselves as a serious buyer. We would then negotiate to as close to the $5,000 posted price as possible because we have no need or desire to sell below our posted BIN price. After all, we use BIN pricing to avoid negotiating in the first place. We are not a motivated seller.

    If we received a $4,000 offer by someone going around our BIN landing page, we'd likely counter at $4,750 and hold our ground there regardless of subsequent offers the buyer makes between $4,000 and $4,750. Why? Because another buyer will likely come along in the next two to three years and pay the full $5,000 BIN price without questioning the price at all. It's just a matter of waiting and paying the $20 to $30 holding costs. At our $4,750 counter, we have offered a 5% discount off of our $5,000 BIN price, which is a discount we are willing to give for a serious, qualified buyer when we really don't need or want to give any discount at all. On the $500,000 home, it would be the equivalent of giving a $25,000 discount to sell the home for $475,000 to the buyer. If you have no mortgage on the home, that's $25,000 in equity you are giving up to the buyer. So, 5% is a fairly big discount on your equity in your domain name, especially the bigger ticket ones.
     
  3. Sourav Patel

    Sourav Patel Established Member

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    35
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