A Little Quiz

[Grrilla]

I sold GadgetInfo*com to a UK co on Sedo the other day. What would be your bottom price have been for this name?
Here are the circumstances:
I rec'd an inquiry, via email, about a week earler, asking a price. I checked out the email address' website, learned that I was dealing w/ a small/medium sized distribution company that sells computer and AV accesories, (gadgets), online. I checked other tlds for the name which revealed that they had just regged GadgetInfo*info about the same time that their email had arrived. (I was already aware that the .net had been regged, something I had noticed when I picked the name up, after it dropped, a year earlier.)

My plan for the name was to orient the site's content to the inventor and tinkerer and to focus advertising on specialty parts, tools, publications and books to that end. I already have a good .info and have since picked up a .com to serve this purpose.

I responded to the email w/ a general range, ie $x's, that I would consider selling the name for. The Sedo bid came in, I responded w/ a counter that fell near the middle of my "target price window", their counter split the difference, (which fell dead on my bottom line), I accepted and the sale closed. The quiz is not to guess what I sold it for, but, given the circumstances, what would your bottom line have been? (And, if you are so disposed, Why?)

 

[VisualArtistFrankBonilla]

low $x,xxx??? Since it was a company.


Frank

 

[Truthman]

Personally If negotiations didn't produce a higher price I would have let the domain go at: US$1,500 to that customer. Also depends if there has been much interest in the domain previously.

 

[Badger]

not one of your best names mike soooooooooo,

pre research and other party contact $350, post contact and research $2.2k

regardless, nice sale....... must be something in the wind cos i seem to be negotiating about 3 sales at a time these days and you know what, something inside me tells me that this is a mistake.....

 

[Grrilla]

i seem to be negotiating about 3 sales at a time these days and you know what, something inside me tells me that this is a mistake.....

How so, Badger? Do you mean that you are feeling an upward market swing taking place due to all of your activity and that you might be selling too soon and, perhaps, too low? You've gotta spell it out a bit more for this dense skull to absorb your meaning.

 

[Badger]

How so, Badger? Do you mean that you are feeling an upward market swing taking place due to all of your activity and that you might be selling too soon and, perhaps, too low? You've gotta spell it out a bit more for this dense skull to absorb your meaning.

Spot on.....

I just keep getting offers on just sooo many domains, i sell with at least a 10 fold profit, am happy but it just gives me an uneasy feeling...

I get a new offer almost everyday. I def think there are speculators buying up wads of domains and selling none... Reminds of that time i was selling 3 letter .coms for $400-$500 bucks with a smile on my face...

 

[equity78]

If there had been no interst in the domain before and I noticed the .info being regged by the same company who also wanted the .com I owuld htink they were serious and could afford say $1500 SO that would have been my Price Michael, Nice sale.

 

[Premium]

I'd probably counter around $750-$1,000 range if they were serious.

Curious how much did you sell it for tho? :tu: Obviously a nice sale!

 

[Grrilla]

Obviously a nice sale! Curious how much did you sell it for tho?

Judging from the posts, thus far, maybe not so nice. However, the purpose of my post was to gage my target range, and make adjustments, if need be, which would appear to be the case. I have just had a run of 3-4 names that have failed to sell because I couldn't reach a middle ground w/ the other parties, not even receiving a response after my last counter offer was sent, so, w/ this one, I adjusted my sights down a bit to a range between $350-$700 and landed at the low end = $350. The opening offer was for $200. Being a bit gun shy, due to having two other deals fall through over the past 10 days, I countered w/ $500, rec'd a counter of $350 and settled on it.

I had pegged the name for dev, hadn't even listed a min price on it at Sedo, rec'd very little traffic- only a few visits/mo, regged another similar, name as a replacement, (the availability of alternate names to express the same idea, weakened it's value, in my eyes), GadgetInfo*com had rec'd no previous inquiries, I had only about $15 invested in it, and as Badger mentioned, this was "not one of my better names, sooooo..."? Sooooo, I ,probably, could have sold it for more according to the feedback, thus far, but I'm not imitating the guy in PrimeHostedNet's avatar over it.

Thanks for the input, everyone. It's helping me rebalance my perspective, which probably was getting warped, a bit, due to recent failed sales.

PS I would normally not be able to be so specific about the negotiating details, but know in this case, this is not a resale situation, and after reading the first posts, figured if the buyer did, by an off chance, bump into this thread, he would feel even better about his purchase, ergo the details.

 

[equity78]

Mike that's a great point that's what happnes we get secrewed over or lowballed on some names then we sell one cheaper than we thought. Its still a good price for the name especially when you have an alternative name to develop.

Badger gave me some great advice that I think holds true with .coms buy in the xxx range sell in the x,xxx If you just regged be happy to sell for low to mid xxx. RIGHT ON IAN.

 

[Badger]

So do i win the quiz??

Badger gave me some great advice that I think holds true with .coms buy in the xxx range sell in the x,xxx If you just regged be happy to sell for low to mid xxx. RIGHT ON IAN.

Thanks man.... well appreciated

**edit**

btw Mike, i think your right with the recalibration requirement and lso that your buyer would have paid more.

I just had a sale (under non disclose) that came to me out of the blue through afternic $400 opening which i countered with lowish $$$$$. Sold nearer my bid than theirs... Wasnt a no brainer valuation name either

 

[Grrilla]

Recalibrating. Thanks. But first, I think I will pound on the desk for a moment, afterall. Excuse me for a second.
Bam! Crash! Crunch! $%@#! BANG!

OK, I'm back. Hmm... closer to your $xx,xxx than to his $xxx? Well, at least, as you said, it did have some intrinsic value that made the valuation more of a no-brainer. ...Right?

I know myself well enough to know that I have a weakness, a certain shyness, in regards to discussing money/pricing w/ potential buyers, (as well as, sellers.) Additionally, as a seller, although I am fairly adept at researching and gleaning info about the other party, it seems that I haven't learned to read the other party and the negotiation well enough, to find that elusive "sweet spot", yet. I have had sales where I do hit the mark, but it seems that more often than not, I end up on the short end of the stick or when I am in what would be considered to be the right range, the other party breaks off discussions. :tu: :td:

Unless I get this down, I fear that my success in domaining will continue to be in the category of. "doing OK, but coulda-shoulda been better." I can analyze a name up one side and down the other, I spend a good deal of time looking at comp sales, and have even given advice to others, (who have asked), during their negotiations, which have resulted in successful sales at maximized prices, but when it comes to many of my own deals, I am far too prone to get lost in and influenced by current events and my objectivity takes a vacation.

Another thing I know about myself, is that I like challenges, so time to get back to it! :wave:

PS That's it! I've had it w/ guessing what someone else is thinking or where they are coming from. For the time being, I'm going to apply my own appraisal methodology to my names, set my *actual* minimums, (not an, often, arbitrary starting point), mininums that I will stick to, and let it ride, regardless of what my recent transaction activity has been like. That way, there is less chance of erring and second guessing and I can always make my opening response to an offer reflect what is appropriate relative to the party that I am dealing w/, at least, in obvious cases. Cut! Print! That's a keeper.

You should see what I'm like on a bad day! :lol:

 

[Venolus]

I would have sold it for mid $x,xxx
But that doesnt make any difference..or does it?

 

[jeter4982]

I think $350 was a fair price for the domain. Its not great, and if there initial offer was only $200, its doubtful they would go up to four figures. You probably could of gotten a little more, but $350 isn't bas IMHO.

Tom

 

[Grrilla]

I would have sold it for mid $x,xxx
But that doesnt make any difference..or does it?

Not at the moment, but I might ask you if you would be interested in brokering my next one, if you can get it. :hehe:

think $350 was a fair price for the domain. Its not great, and if there initial offer was only $200, its doubtful they would go up to four figures. You probably could of gotten a little more, but $350 isn't bas IMHO.

I had a small revelation today when I realized how many $xxxx, $xx,xxx, (and higher) transactions I've handled- pay rates that I've negotiated etc, over the years, until a couple of years ago, when I got out of the Film/Video business. I used to handle crews and have daily budgets of $xx,xxx+, and I'd pay a dollie grip more than $350, which is the figure I'm talking about today. The difference between than and now, is that I am dealing in a medium that has only recently transitioned out serious hobby status for me, and I am feeling wimpy about the money because, a) I'm covering relatively new ground, and don't have the confidence that 30 yrs, (or 20yrs or 10yrs), experience in an endeavor, gives you. b)While the budgets may have fluctuated, I was working w/ known values, ie relatively consistent rates and price ranges that were known by the parties, rather than a negotiation over each individual item. c) As the effort becomes more serious, the higher the income expectations, and my hobbie status rate card hasn't caught up to the business one.

Revealing. (For me, anyways.) Hope it does something for, (and makes sense to), someone else. :D So this is what semi-retirement is like for the self-employed.

 

[Badger]

I know exactly what you mean Mike... However, ive lived by the opposite regard since i set out on this hobby/pt job of internet trading. And as far as this may sound blaise, i cant be bothered to sell a name for less than $250/$300 because, in the first instance, i believe i dont buy any names worth less, though perhaps more importantly (and heres where it gets blaise) i cant be bothered to do the admin for anything less.. You know like $200 is £100 and i spend more than that on a new tyre for my car.

I do believe there is definately more buyers out there at the moment though.... And that somethings definately in the wind (for want of a better phrase)...

Woke this morn to find three offers in my mailbox.... Golf.sc, homes.sc (which ive just sold here for considerably less than the opening offer ) and texasholdempoker.de ...

So fellow traders.............