NameSilo

Accept the offer. Your domain is sh*t.

Labeled as advice in General Domain Discussion, started by S-B, Oct 29, 2016

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  1. S-B

    S-B Account Closed

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    I've noticed many people complaining about receiving "low-ball" offers around hurrrrr. Stop drinking the Kool-Aid and sell the damn domain.

    Your domain is not going to allow you to retire even if you hold it for 20 more years and it is certainly not needed to run a successful business. Stop being stubborn.

    Stop listening to appraisals too.

    The only meaningful appraisal comes from all those buyers purposefully pissing you off with all those "low-ball" offers. The truth is that the market is made by buyers. They offer what it's worth to them and don't really care about those warm fuzzy feelings the domain gives you.

    To me it's as silly as company complaining about their investors because the stock price is so low.
     
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  2. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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    Totally agree with about not getting emotionally involved with your domains and sell them when you can! But there are real rare domains that are exception to "you're not going to retire off them" statement..real super, uber rare!

    Update..personally I know I won't retire on my portfolio but they will add a healthy amount to my retirement.
     
    Last edited: Oct 29, 2016
  3. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    I think something alot of people forget to take into consideration is the "re-investment value" of the low ball offer that they might have turned down... I'm not talking about down right insane low ball offers... but for example, lets say you have a $5000 price on a domain and you get offered $2000 but you know that if you hang onto that domain you could probably get $5000 maybe in a year or two. All good and well BUT let say you take the $2000 offer and reinvest it, that $2000 investment would yield considerably more in the same 1 or 2 year time frame.
     
  4. garptrader

    garptrader Top Contributor VIP ★★★★★★★★★★

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    Factors which influence any negotiation...

    1) buyer's need for or desire to acquire the item - nice to have, many acceptable alternatives or must have

    2) buyer's financial position - Apple, Google, Facebook or any Fortune 500 company can potentially spend five figures or more on a domain name and not blink. A website developer or sole proprietor will have more limited means.

    3) how much the buyer is willing to pay - despite Warren Buffett or Bill Gates' financial resources, they are not going to spend $5000 on a pencil. Many end users just do not place much value on domain names as they are not viewed as something worth spending a lot of money on. So $xx and low $XXX offeres abound.

    4) seller's financial position or income from other sources - even if a domain makes zero in parking, if the seller has income from websites or another business or a full-time job, they can more easily reject offers deemed to be inadequate. If they are struggling to pay renewals, they are going to be more open to negotiation.

    5) other offers received for the item in question or similar properties (it is easy to reject offers which are less than what one has recently received from other potential buyers). On the other hand, for specific domains, an interested party may only come along once every few years. If an offer is rejected it may be a while before another interested party comes along. And they may be no more willing to pay big dollars than the current interested party.

    6) investment and replacement cost - a seller will be reluctant to sell a property at less than what they paid for it. Also, if they are in the business of buying and selling, they may also consider what it would cost to acquire a similar property to replace the one they are considering selling (even if the offer is above their cost).

    As a financial professional who has worked for small and large companies, I have seen spending on IT consultants, attorneys, audit fees, software, exec bonuses, executive travel, capital projects, marketing, etc. It amazes me how much money companies can spend on all these other ordinary expenditures but when it comes to their business identity on the web, they believe that $25 is all they need to spend. Yes, DNJ does report the exceptions but industry portfolio turn is very low largely because companies choose to brand on reg fee domains rather than spend a modest amount for aftermarket domains.
     
  5. imadoer

    imadoer Top Member PRO VIP

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    When you separate your emotions from the domain name and just concentrate on the roi it makes a huge difference. I find it a lot easier to make low sales in volume. Also feels good when cash is coming in faster. I see a lot of people so close to making a deal and they get greedy they need $100 more to make a deal. And the roi is great already.. Not smart imo I rather loose $100 and make $500 Then make $0 There's tons of names for sale lots of options out there. People learn to take the money.
     
  6. Jurgen Wolf

    Jurgen Wolf Top Contributor VIP ★★★★★★★★★★

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    I don't agree at all...
    There are various calibres of buyers on the same domain (if it is a quality domain)...
    And the final price depends on seller's skills only...
     
  7. GoKaizen

    GoKaizen Always be Learning VIP ICA Member

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  8. bobbarato

    bobbarato Established Member ★★★★★★★★★★

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    Check this guy out - offering $250-400 for 4L.com ChiPs and he's been on NP for over a decade!
    https://www.namepros.com/threads/looking-for-llll-com-llll-net-chips.980835/

    On what planet is this not a looooooow ball?

    My pet peeve is when I post "make offer" and I get PMs asking the price.
     
    Last edited: Oct 29, 2016
  9. bobbarato

    bobbarato Established Member ★★★★★★★★★★

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  10. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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  11. Electric-Shadow

    Electric-Shadow Weaver of knowledge VIP ★★★★★★★★★★

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    I have to agree with Shane after learning the hard way, I've missed out on solid offers because I held out for more. I ended up selling one for half the price I was originally offered but I was still happy because it was a healthy ROI. There's no shame in rejecting silly offers but when you get one that's actually fair, say $600 for a $40 name, for god sake take the offer rejecting it for an $x,xxx that may never come is stupidity. It is after-all money you can use to invest in better domains.
     
  12. BrandChimp

    BrandChimp Life is short. Get up and make yours better. Chimp VIP

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    I should of sold my 3L .com for $500 then. OMG Why I have sold it for so much more :'(

    I agree that you need to sell domains at re-seller price also to keep the money flow. I used to not like selling domains under $1,000 but I am now selling on the aftermarket. Profit is profit.
     
  13. eyedomainous

    eyedomainous Top Contributor VIP ★★★★★★★★★★

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    Low ball offers are often a reflection of the property's neighborhood, not the property itself.

    The domainer neighborhood is largely a park-and-burn ecosystem -where domain resources are exhausted, then abandoned. So Low-Ball offers are the norm, just like the marketplace for slash-and-burn farmland.

    High-Ball domaining adds value, and can grow a hand reg into a retirement plan in much less than 20 years, and get much higher offers along the way.
     
  14. BrandChimp

    BrandChimp Life is short. Get up and make yours better. Chimp VIP

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    That's exactly what I've recently done. Bought a name for $43 sold $600.

    You must be honest with yourself. Know the value of your assets, both end user and aftermarket price. Also, it is okay to hold your names forever if you don't need extra money. Sadly, we all need money at some point ;).

    Know who is inquiring, an investor? an end user? a broker?

    Try to know how bad they want the domain and what would be a fair price for both sides.

    If someone offers you $10 for a domain name, don't reply no thanks and don't insult the inquirer.

    Let him know why it doesn't worth $10 and send a link to Namebio.com for comparable sales. This way the buyer will have a clearer idea of your domains value.

    Be open for negotiation and be polite.

    "Thank you for your interest in my domain name.
    I have discussed with my team and we are pleased to offer you a unique chance.

    This is a great and short .com domain name that it is easy to spell. It will also sound good on the radio and would look great on a tv ad.

    Do you know that owning a great domain name can establish instant trust and credibility with customers?

    DomainName. com can be yours today for as low as $x,xxx!
    This price will only be available for 7 days.

    What do you think?

    I look forward to hearing from you.

    Warm regards,
    Name Last
    1-555-5555-555
    [email protected]


    **Note that my English isn't that good but you get the point :)
     
  15. Jasonn

    Jasonn Top Contributor VIP ★★★★★★★★★★

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    true but its not so much about what the domain is worth but what the buyer's budget is. i've had domains were if i would of accpeted the low ball offer, i would of missed out on a much much better offer a couple years later. for example, one domain, i had a 700 offer i turned it down. sold it 3 years later for 25k. its the exception not the rule. the domain wasn't worth 25k, it just happened to be wanted by a deep pockets corp.
     
  16. visionse

    visionse Established Member

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    The same is always read, how to undermine the beginner to give away their domains, I share some if they understand the message and know that it is. These headlines are always a controversy. I would have liked reading strategies to the field professionals with over 6 years.
     
  17. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    This business is frustrating, because domain names are the most under-appreciated assets of our time. Period :)
    I think end users are conditioned by the registrars who don't have branding in mind at all. They are running a volume business and they want to sell as many regs as they can, often for < $10.
    So it is hard for a normal person to figure out why they should invest $$$$ in their online identity, and few people understand the value of domain names, even among domainers...
    Developers have no clue, all they want is charge the client for their SEO magic to be performed on a crap domain. Sad.

    On the other hand, I like to say that the first offer received will often be the last you'll ever get. It's important to maintain cash flow, so do sell while the ROI is good but you shouldn't liquidate the crown jewels at distress prices.
     
  18. BrandChimp

    BrandChimp Life is short. Get up and make yours better. Chimp VIP

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    Just got an inquiry for a 5 years old brandable made up .com. The end user offers me $50. Less than what I've paid. I would be happy to sell it for high $xxx to low $x,xxx.
     
  19. garptrader

    garptrader Top Contributor VIP ★★★★★★★★★★

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    The reality is that even twenty years after the internet became mainstream, we have still not reached a tipping point where the average person views a domain name as something that one should pay real money for (people pay for numerous offline services - gym memberships, hairstyling appointments, car washes, lawn maintenance, etc but still expect web content to be free). Yes, developers and small business people are often irritated at domain investors hogging all the good names but they end up finding something for reg fee. It is generally accepted that if you want to drive a new sportscar or live in a fancy condo with a water view or other prestigious location you are going to have pay a premium to do so. So why should a domain name which will be used to promote a company's products and services be an $XX item?
     
  20. BrandChimp

    BrandChimp Life is short. Get up and make yours better. Chimp VIP

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    They need a great name to make millions of dollars. I think $x,xxx is cheap enough
     
  21. gipson

    gipson Next Domain Market VIP

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    You complain that the seller does not accept your low offer and you said he needs forget this and that, ok then, you are not looking to buy cheap for sale expensive. - is that what you are saying? because if it is not, nobody is forced to sell cheap for that you get more profits.

    And if you like, lets make a test, i offer you $ 100 for any of your 4 letters .com
     
    Last edited: Oct 30, 2016
  22. johnn

    johnn WeSellName.com PRO VIP ★★★★★★★★★★

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    It's plain and simple:

    1. People are in love with the name and did not realize this is a business.
    2. Believe in MessmeBot.
     
  23. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    .. and never listen to "advice" given to you too
    at least not to this one

    this game is much more complex


    you are either stubborn or not
    definetely I am stubborn and have no intention to change that in near future



    so what?
    they may be the wrong buyer

    it all depends on the domain itself
    make notes why you registered that domain
    and stick with it
     
    Last edited: Nov 5, 2016
  24. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    no really not 20 years mainstream
    not in my part of the world
     
  25. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    thanks to that you can still buy them cheap
     

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