advice Should You Always Counter The Initial Domain Offer – 3 Things To Consider

another good read from Omar & Will.

Insightful as this is one of the dilemma when selling

I am afraid its much more complex then 50 times or 10 times costs ...

for me it really doesn't matter how much I paid for the domain
but how much the domain maybe worth to the right buyer

now all you need to do is wait for the right buyer

today I got an inquiry for a domain I registered in 1999 or so
first inquiry ever
and he is offering 50 euro ...

heck it s a cool domain ..

- my cost was about 70 euros -

Great post by Omar as always.

The secret in any business is having the right product to sell. This of course is the hard bit. If the service / product is good enough, you don't need to barter with the end user -- set a price and it will sell.

This is easier said than done. You may be selling real estate / domains / SEO etc etc -- it doesn't matter. Have a good product and you can set your price. Domaining is about buying at the right price -- not selling at the right price IMO.

Best,
Paul

should always counter the initial offer because you'll always be able to get at least $1 more.

Best strategy is never sell, develop and put a business model on it to make money.

But if you are a seller mindset, I'd never say yes to first offer, I'd counter with reasons why it's too low and try again.

Now IF it was a power end user and the offer was huge (7 figure range) I'd be asking how they want to pay us.

haha

Hitesh Wadhwa said:

another good read from Omar & Will.

Click to expand...

Thanks! Glad you enjoyed the read.

kdot19 said:

Insightful as this is one of the dilemma when selling

Click to expand...

Yes it is a challenge to know when to counter and when to simply take the offer but with experience it does tend to get less difficult.

frank-germany said:

I am afraid its much more complex then 50 times or 10 times costs ...

for me it really doesn't matter how much I paid for the domain
but how much the domain maybe worth to the right buyer

now all you need to do is wait for the right buyer

today I got an inquiry for a domain I registered in 1999 or so
first inquiry ever
and he is offering 50 euro ...

heck it s a cool domain ..

- my cost was about 70 euros -

Click to expand...

Yes you do have a point, there are cases in which you can get a domain for $50 and know that name is worth 5k plus due to it's stats and popularity. But the 50x and 10x the price are just to have some type of map or guidance to know what I want to make on the name and what is the least I would take. Depending on the domain I do wait for the right buyer.

Paul123 said:

Great post by Omar as always.

The secret in any business is having the right product to sell. This of course is the hard bit. If the service / product is good enough, you don't need to barter with the end user -- set a price and it will sell.

This is easier said than done. You may be selling real estate / domains / SEO etc etc -- it doesn't matter. Have a good product and you can set your price. Domaining is about buying at the right price -- not selling at the right price IMO.

Best,
Paul

Click to expand...

Well said indeed. When it comes to domaining you make your money on the buy. Focusing on finding good deal and buying wisely will make the sell process a whole lot easier.

Jv1999 said:

should always counter the initial offer because you'll always be able to get at least $1 more.

Click to expand...

Truth! When you counter and they truly are interested in the name then they will give you their best offer.

idomainappraisal said:

Best strategy is never sell, develop and put a business model on it to make money.

But if you are a seller mindset, I'd never say yes to first offer, I'd counter with reasons why it's too low and try again.

Now IF it was a power end user and the offer was huge (7 figure range) I'd be asking how they want to pay us.

haha

Click to expand...

Well said! When you develop you increase the value of your asset which means you will be able to sell it for a lot more. Yes when a great offer comes a long just simply go with it and give yourself a a pad on the back =-D

- Will

"Knowing if the potential buyer who gave an offer is a large company and how much they make can help you get a sense of what you could reasonably counter with."
You made good points, but not this one.

Shouldn't matter if it's a large company and how much they make.
The domains value should stand on it's own.

Try to imagine the price of everything you buy is determined by who you are and how much you make.
This is exactly why buyers hide their identity.

Knowing the buyer helps to know how to negotiate but shouldn't have any influence on the amount.
I think it's better to be ready with several bullet points as to why seller has set the price.
Agree with Paul,
"Have a good product and you can set your price. Domaining is about buying at the right price -- not selling at the right price IMO"

If your dumping domains after 1 year let us know so we can get ahead of those darn drop catchers

Keep in mind most large dollar sales have had a hold period average 7-10+ years. That's one thing I consider when I buy. Based on the market today could I sell for 10x 10 years reg ? If it's a yes then It's worth the hold.
Happy Hunting !

168 said:

"Knowing if the potential buyer who gave an offer is a large company and how much they make can help you get a sense of what you could reasonably counter with."
You made good points, but not this one.

Shouldn't matter if it's a large company and how much they make.
The domains value should stand on it's own.

Try to imagine the price of everything you buy is determined by who you are and how much you make.
This is exactly why buyers hide their identity.

Knowing the buyer helps to know how to negotiate but shouldn't have any influence on the amount.
I think it's better to be ready with several bullet points as to why seller has set the price.
Agree with Paul,
"Have a good product and you can set your price. Domaining is about buying at the right price -- not selling at the right price IMO"

If your dumping domains after 1 year let us know so we can get ahead of those darn drop catchers

Keep in mind most large dollar sales have had a hold period average 7-10+ years. That's one thing I consider when I buy. Based on the market today could I sell for 10x 10 years reg ? If it's a yes then It's worth the hold.
Happy Hunting !

Click to expand...

I do it differently

a domain is worth more to a buyer with deep pockets
then to a small guy

as the buyer with the deep pockets wouldn't care about that domain
if it would not benefit them

and if they have deep pockets
they will benefit more
as their threadhold
when they start caring about your domain
is higher then for a small guy

and yes you are right in only 1 point:
most of my domain sell after a few ages

( ...and I am a dop catcher )

There are times when the initial offer is sufficient i.e. if the domain is listed at sedo with a guide price and the buyer offers that guide price - I think it would look greedy to ask for more.
However, on other occasions, when it looks like the domain might be worth a bit more than the initial offer - we haven't been frightened to make a counter offer. Over the years, we've come to the conclusion that if a buyer walks away, following a counter offer (and assuming the counter offer wasn't unrealistic) then they probably weren't serious anyway and would probably not have proceeded with the purchase. If the buyer really wants the domain - and he's already near his max limit - then you'd expect them to come back and say - sorry but this is my limit. That's the conclusion we've come to after years of negotiations - of course you'll need to come to your own view on negotiations, and it might depend on the quality of your domain portfolio. Be interested to hear if any experienced domainers think along the same line as us.

frank-germany said:

I do it differently

a domain is worth more to a buyer with deep pockets
then to a small guy

as the buyer with the deep pockets wouldn't care about that domain
if it would not benefit them

and if they have deep pockets
they will benefit more
as their threadhold
when they start caring about your domain
is higher then for a small guy

and yes you are right in only 1 point:
most of my domain sell after a few ages

( ...and I am a dop catcher )

Click to expand...

Well yes I suppose one could come up with several domains sold to deep pocket investors for "bragging" rights.
I don't lower my price just because it's a little guy or someone starting out any more than I would up my price for someone
with "deep pockets".
My valuable domains are priced on the inherent marketing value to any buyer. To put an additional premium on it "just because"
is wrong IMHO

Id counter because the first offer is most likely going to be a lowball offer, someone trying to get it for as cheap as possible.

However, for me it would help if i had offers to begin with. lol

well that is the main fun in negotiation while trading.
we do not know about its exact value.

yes as there is no precise value

nice and useful information.....
thanks for the article

Good discussion, definitely a good read.
Much thanks!

168 said:

"Knowing if the potential buyer who gave an offer is a large company and how much they make can help you get a sense of what you could reasonably counter with."
You made good points, but not this one.

Shouldn't matter if it's a large company and how much they make.
The domains value should stand on it's own.

Try to imagine the price of everything you buy is determined by who you are and how much you make.
This is exactly why buyers hide their identity.

Knowing the buyer helps to know how to negotiate but shouldn't have any influence on the amount.
I think it's better to be ready with several bullet points as to why seller has set the price.
Agree with Paul,
"Have a good product and you can set your price. Domaining is about buying at the right price -- not selling at the right price IMO"

If your dumping domains after 1 year let us know so we can get ahead of those darn drop catchers

Keep in mind most large dollar sales have had a hold period average 7-10+ years. That's one thing I consider when I buy. Based on the market today could I sell for 10x 10 years reg ? If it's a yes then It's worth the hold.
Happy Hunting !

Click to expand...

This is very true that is why you make your money on the buy since getting domains with value will eventually sell. I do agree there are names that are worth holding for more than 1 year and yes even 5 to 10 years. As you buy and sell more and more domains you tend to get a better understanding on what to drop and what to keep.

frank-germany said:

I do it differently

a domain is worth more to a buyer with deep pockets
then to a small guy

as the buyer with the deep pockets wouldn't care about that domain
if it would not benefit them

and if they have deep pockets
they will benefit more
as their threadhold
when they start caring about your domain
is higher then for a small guy

and yes you are right in only 1 point:
most of my domain sell after a few ages

( ...and I am a dop catcher )

Click to expand...

This is the beauty of the domain business as you can have different tactics and methods and still have success.

NigelD said:

There are times when the initial offer is sufficient i.e. if the domain is listed at sedo with a guide price and the buyer offers that guide price - I think it would look greedy to ask for more.
However, on other occasions, when it looks like the domain might be worth a bit more than the initial offer - we haven't been frightened to make a counter offer. Over the years, we've come to the conclusion that if a buyer walks away, following a counter offer (and assuming the counter offer wasn't unrealistic) then they probably weren't serious anyway and would probably not have proceeded with the purchase. If the buyer really wants the domain - and he's already near his max limit - then you'd expect them to come back and say - sorry but this is my limit. That's the conclusion we've come to after years of negotiations - of course you'll need to come to your own view on negotiations, and it might depend on the quality of your domain portfolio. Be interested to hear if any experienced domainers think along the same line as us.

Click to expand...

Very good points, I agree you should not be scared of countering a price since as long as it is a reasonable counter like you mentioned the potential buyer will tell you the initial offer was his best or he will give you his absolute best.

stewmath said:

Id counter because the first offer is most likely going to be a lowball offer, someone trying to get it for as cheap as possible.

However, for me it would help if i had offers to begin with. lol

Click to expand...

Haha true :D yes I welcome any offer but if an offer comes with an insane amount of profit I will just accept it.

Rachel Mcdonalds said:

well that is the main fun in negotiation while trading.
we do not know about its exact value.

Click to expand...

Exactly I remember getting an offer on a domain and went back and forth in negotiating and the buyer was stuck at a really low price telling me the domain was worth only that then a week later closed the sale with another buyer for 10 times as much as what the initial guy thought it was worth.

abbie fernandes said:

nice and useful information.....
thanks for the article

Click to expand...

Good to hear thanks :D

Reyansh Sharma said:

Good discussion, definitely a good read.
Much thanks!

Click to expand...

You are welcome!

- Will

Lesson learned here from my resent disappearing act from a potential buyer whom I guess did not like my counter on his $5k offer. Yikes! shoulda just took it. lesson learned.

Moral? don't get greedy.