Counters offers based on a multiple...

[gazzip]

I quiet often see people recommend countering an offer with a multiple of the initial offer price. Is this a common/sucessful way to go ? (generally speaking)

Before I have always just replied with a price I previously had in mind.

I'd be interested to hear your thoughts on this and to what multiple you usually use/try. What has worked for you ?

The initial offer was $700 from a well backed travel related company, of course as always, they do have other options. The name was a hand reg'd after a drop which I bought because I have an personal interest in developing it.


Any thoughs, advice appreciated :tu:



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[Spade]

Gazzip,

If you dont counter, your leaving money on the table... I think you need to really get in the minds of the offeree, find out everything you can about them. $700 is a nice stating point, in my mind you should be able to get more than that from them. I would more than likely consider a counter somewhere in the neighborhood of 2k. However, if the name is "weak" and its a solid price, take the money...

If you think the name has great potential, dont sell it for less than your set price... But, I never accept a first offer, atleast without trying to get more.

Justin

 

[gazzip]

Gazzip,

If you dont counter, your leaving money on the table... I think you need to really get in the minds of the offeree, find out everything you can about them. $700 is a nice stating point, in my mind you should be able to get more than that from them. I would more than likely consider a counter somewhere in the neighborhood of 2k. However, if the name is "weak" and its a solid price, take the money...

If you think the name has great potential, dont sell it for less than your set price... But, I never accept a first offer, atleast without trying to get more.

Justin

Oh I will be countering for sure Justin and in all honesty had he just made a $60 initial offer I would have not hesitated in countering with $4,000

Last week I had an initial $600+ offer on a different name, I countered with $4,000 but they did'nt go for it and just offered me the same, so I cancelled it.

A decent sale would'nt hurt just now so I'm willing to be more flexible with my asking price, thats why I thought of countering with a multiple of the initial offer.

I was thinking of $2,500 as my counter, ie: less than 4 x and be willing to drop to $2000.

Its a nice name for a man with a plan ! Not weak at all and as mentioned I bought it because I had a plan for it but that was more of a personal interest thing than a money thing.

They have interests in numerous countries and own at least three websites that i know of so they most definetly have the money to buy it but that does'nt mean they will :hehe: There's always other options.

So, do you think 4 x is scare em off territory or a "resonable" counter ? or push for more ?
(I know thats not easy to answer without knowing the domain)


Thanks


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[Damion]

Hi Gaz,

It's hard to tell as you mentioned yourself without knowing the domain but you mentioned as well bringing in a sale right now wouldn't hurt so as their initial offer is $700 and as you mentioned you got it on the drop (Hopefully for a small figure) then it's already profit made...but like Justin said go for the counter and keep it under $2,000 to make the number less [intimidating].

Why not counter with $1,800 and see what happens then? Perhaps you can bring it to 1,200 to 1,400 :talk: And you'll probably think that would be a nice number to put in my pocket.

What number would make you content? Then go for that
It would suck if you would later on realize you could have had...instead of having a acceptable result realized.

 

[-NC-]

I've not much experience in this game yet, but here's a story that might have some value in terms of illustrating how non-domainers (or even just inexperienced negotiators) might view the counter offer process.

When I was very fresh at domaining (couple of weeks), I saw a name I liked up for offer / counter offer at godaddy, with a minimum offer of $30, so I offered $30. The seller came back and said he couldn't let the name go for less than $250. My response was terse. I asked why he was wasting my time by listing with the min offer at 30, and then coming back with 250, if he wanted 250, just list it at 250.

Now, six months in, I'd simply respond that $30 was my best offer, sorry, good luck with your sale.

I think how you handle the negotiation depends a lot on the other party. How did they find the name, was it listed somewhere with a min offer? Were they savvy enough to contact you directly from the whois? If they are inexperienced, they may just walk away from a massive counter offer without even attempting to negotiate. I assume the catch is of course that it's often not possible to know who you are dealing with.

In this case, it sounds like a large company, so in *theory* they have some negotiation skills - however my company does web development for an extremely large company here in the uk, and I happen to know that the marketing department are responsible for the web division, haven't a clue about it and have assigned a very junior person to look after all their thousands of domains!

 

[gazzip]

If you think the name has great potential, dont sell it for less than your set price...
Justin

It has and I am keen to develop it with affiliate links and my own photos i took so I think I'll just go with my initial price, If it does'nt sell it's not a problem at all and after taking the weekend to think about it I'm willing to take that chance. If I wanted to find another similar domain for what i need it for it would be near impossible to find anything as good.

It would suck if you would later on realize you could have had...instead of having a acceptable result realized.

I think that can still happen regardless of how much you ask for a domain.

When I was very fresh at domaining (couple of weeks), I saw a name I liked up for offer / counter offer at godaddy, with a minimum offer of $30, so I offered $30. The seller came back and said he couldn't let the name go for less than $250. My response was terse. I asked why he was wasting my time by listing with the min offer at 30, and then coming back with 250, if he wanted 250, just list it at 250.

Yeah, I had a similar experience at GoDaddy / TDNam recently - I offered the guy exactly what he was asking for and i got a higher counter offer back - I walked !

- however my company does web development for an extremely large company here in the uk, and I happen to know that the marketing department are responsible for the web division, haven't a clue about it and have assigned a very junior person to look after all their thousands of domains!

:o not a good move eh !


So nobody works on multiples anymore :blink:

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[Damion]

If I wanted to find another similar domain for what i need it for it would be near impossible to find anything as good.

In that case you could definitely take the chance
Unless you're really need some cash flow...

(BTW, I'm digging up those affiliate programs so a PM is on it's way...)

 

[gazzip]

(BTW, I'm digging up those affiliate programs so a PM is on it's way...)

Thanks Damion :tu: Do you have any good cruise related ones too ? :blink:


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[gazzip]

Well....that pretty much went as I expected :hehe: I tried shooting for a $3,000 sale but he cancelled.

He actually managed to buy a longer but "probably" better domain from Buydomains for $2,100 - Like I said, he did have other options.

No worries, I'll stick to plan A and develop it in the next two months or so, hopefully with affiliate links and eventually banner advertising.

Do I regret pushing for more?......nahhh I have a personal interest in this one.



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[Spade]

Gazzip, as long as you can wake up and be happy in the morning...

 

[gazzip]

Gazzip, as long as you can wake up and be happy in the morning...

I always do regardless :tu: Lifes too short to live any other way !


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[Spade]

I always do regardless :tu: Lifes too short to live any other way !
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I always wake up grumpy... I think im gonna die young - lol

 

[Damion]

Too bad Gaz, good luck with development!