NamesCon2020

Counter or no-counter on an opening offer?

Labeled as discuss in Domain Buying and Domain Purchases started by Soofi, Oct 13, 2019 at 1:10 AM.

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  1. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    After over almost 2 decades in this industry, at times, I still fail to understand the endusers/buyers during negotiations and lose quite a few sales to the counter-strategy.

    My question at hand is; Should we really counter to an opening offer or accept as it? What do most of you do?

    So to build this discussion up and see what others have to say or suggest about this, recap on why I am interested to know what most of you do is because of this below mentioned situation/story:

     
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  2. dninspire

    dninspire Upgraded Member Gold Account

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    Your logic here is fair. We all (me) worry about leaving money on the table and accepting too low.

    I have been guilty of not taking an offer when there were no other offers to be had. My reasoning was simply the domain was more valuable to that end user or the conclusion that the bidder was playing games regardless of worth.

    There are names I which in retrospect I would have taken the $500 or $1000 or $3500 but I didn’t take it and that was that. Some went on to sell for same or a little more.

    It’s tough to say. It’s so much easier as a broker to handle the negotiations IMO simply because you have a directive from the seller for asking and floor and you do your best and at the end of the day you know you did your job. When you’re the owner the valuation becomes a little bit cloudy.

    If we all placed a starting high enough to be what we would settle for there would be no issues if the conversion is good enough for your business model/pockets however if the offers do not come because of the starting bid then that’s our risk.
     
  3. Avijit Roy

    Avijit Roy Upgraded Member Gold Account VIP

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    I always accept the first offer, I have similar experience of losing deal because of counter offer.
     
  4. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    You have summed it quite well here.

    There are times when we counter and there is no response or interest shown by enduser. But when we accept an offer, and buyer goes through with it, we start thinking on the lines of whether we left money on the table, etc..

    I think at the end of the day, it all boils down to your gut feel and whether you are satisfied with the price point you have gotten or not.

    Human nature, I guess.. will we ever be satisfied? lol
     
  5. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    What has been your soft spot, pricing your domain names and how much price-wise do you counter?
     
  6. Avijit Roy

    Avijit Roy Upgraded Member Gold Account VIP

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    Most of my sales are low XXX, my sweet spot is $150- $199.
     
  7. Sumeeth

    Sumeeth DomExpert VIP

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    I think it is always best to counter offer with atleast 100 to 200$ more (without being greedy) when you are prepared to sell it for your first offer, as a chance that client always quote their minimum and keep some room to go upwards.. so little more price increase probably may close your deal and client may consider your offer..

    Thanks,
    Sumeeth
     
  8. MasterOfMyDomains

    MasterOfMyDomains Top Member VIP ★★★★★★★★★★

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    I got an offer of $301 for pickabud last week. Countered $750 at dan. Then i started thinking thats 400$ cad
    I countered again at $301 and it was accepted. Looks nice that xxx in my paypal
    Part reason financial but i have so many names 250 and never previous offer, glad it sold. Sometimes i accept to make buyer happy. We always want more
     
  9. Mister Funsky

    Mister Funsky Top Member VIP

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    When I acquire a name...before anything...I determine what the name value is. If it is at least 3x the cost of the name, I purchase it and list it a bin with an opening offer at that level as a minimum.

    An offer, regardless of when or where it comes from, must exceed that number before I spend one second considering a sale. At that that time (when I determine the offer is at least 3x) I will check recent sales and comparables using multiple public sources. If the offer is significantly less than what I determine the current value is,I will counter along with the supporting data. If not, I take the opening offer, thank them for their business and buy more names once the payment clears
     
  10. Skyvisum

    Skyvisum Top Member VIP

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    It all depends.I look at keywords and companies that names would benefit.The higher the number of companies or enduser needing a upgrade determines some of my prices.Some if its brandable,i do my deep research and counter.I dont mind waiting if name surely is worth more and my need for cash for next purchase.

    Received an offer of $1k on dan and countered.Buyer asked all these questions and I answered and then be went silent.Contacted dan for the contact info to revive the deal.Next offer was $5k and Thanks.I countered again that it was too low as name is worth 5 figures as there are many companies needing the upgrade and .co was already built into a good company.On further research,I learnt it was a company operating the niche using blockchain and they secured a series funding.I then knew i did the right thing countering.Deal goes on and name has been renewed for extra years.Yesterday i got a a starting offer from bodis $500.Countered $1100 as it was a .net and buyer simply told me to wait till next week where he would need to discuss purchase as he is interested.He never said no it was too high.I made a not too crazy counter.Fingers crossed,sale would be reported when deal is closed and money hits my account.

    I always counter except its a bin and no make offer options.I know some sales take time and deals surely gets lost but experience is learnt from any lost sales.

    2 words dictionary is the first domain..Net is a one word ending in "ing".
     
    Last edited: Oct 13, 2019 at 2:56 AM
  11. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    and these are 2 -3 keyword, hand regs?
     
  12. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    Thanks Sumeeth, though haven't had fair success in that approach and the reason why I am tempted to bite the first offer.

    Have you had a different experience in this situation?
     
  13. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    You have nailed my thoughts with this post.

    We are alway looking for more, and the reason why we tend to lose whats there in our hand (read: offers).

    Isnt it better to have $500 offered for a $5 hand registration rather than trying to be greedy and seek more? Of course, if name demands more, you should justify it with your ask or else buyer will simply run away thinking "he's nuts!".
     
  14. Sumeeth

    Sumeeth DomExpert VIP

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    No, I am too greedy and hence lost few sales. Once I received 2500€ for kart.ai domain as first offer but I countered with 5500€ considering the sales in .ai happening but buyer never replied me and i lost the sale .. I might have countered with 2750€ or so , in that case the case might be different.. lesson learnt..
     
  15. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    I like your approach, though, would you mind sharing sharing on how do you get to 3x value of acquisition cost?

    Just to put numbers in place, if the domain costed you $10, you would list it at $30 minimum and higher bin price?
     
  16. Mister Funsky

    Mister Funsky Top Member VIP

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    I am old school...I look at cpc, visits, extensions taken, instinct etc. Yes, if not 3x or more at a minimum, to me, it is not worth tying up the money.
     
  17. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    Your experience sharing is invaluable and with detailed examples make it all the more valid.

    Though, we can counter all we want, there are times when you need to crack some sales to be financially even as you stated above "my need for cash fr next purchase" or renewals.

    Also it is important to note that if the domain does not benefit plenty of endusers and limited in number, we might be better off taking the initial first offer which is reasonably set at our minimum ask. Thoughts?
     
  18. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    Yeah have had the exact same experience on highly priced domain names, and thats what makes me think a lot of times on whether what is the right price to accept for a domain name.

    I have a popular app domain name in .com where I received a $1000, $5000, $10,000, $20,000 & $25,000 after negotiations but I was hell bent on $75,000 reduced to $51,000 and sale didnt happen. When I went back to accept $25,000, buyer simply declined and lost interest!
     
  19. Skyvisum

    Skyvisum Top Member VIP

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    If the domain will not benefit plenty of endusers.I set a bin and leave it there,so no need to counter..When I hand reg heiritage dot com during a play on word by switching "r" and "i" and then an extra to make sure it sounded like heritage ,i knew i just need to add a bin and let it go as i didnt want to waste time countering or waiting for first offer to counter.Just set a reasonable bin and let it fly.
     
  20. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    makes sense, as I look at quite a few of those figures while jumping on a domain name. Its been working!
     
  21. Skyvisum

    Skyvisum Top Member VIP

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    If name sounds good with the app just set your bin and leave it,so no room to negotiate as price is already set.
     
  22. Avijit Roy

    Avijit Roy Upgraded Member Gold Account VIP

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    Yes.
     
  23. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    What was your BIN on that one, and how did you get to that figure? Shall help few of us on getting to an approx. right number :)
     
  24. Skyvisum

    Skyvisum Top Member VIP

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    Its on reported domain sales page,I think i got paid $1508 after 20%.Afternic.April 2018.
     
  25. Soofi

    Soofi DomainX™ PRO VIP ★★★★★★★★★★

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    That's what I did after the above mentioned experience. And switched to Sedo, for better conversion on high ticket names.
     

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