NameSilo

Declined a € 950 offer on a € 0,99 domain

Labeled as offers in Domain Selling and Domain Sales started by envos, Sep 4, 2019.

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  1. envos

    envos Established Member

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    28 days ago I registered a ccLTD domain with a commercial dictionary word. A few days ago I got the first offer of € 850 on Sedo (I set this figure as a minimum offer), then I raised and I got another offer for € 950.

    The domain was paid € 0,99 on GoDaddy.

    I closed the negotiation, they told me they have a budget of only 1K.
    What would you have done in my position?

    Any business model advice is welcome.
     
    Last edited: Sep 4, 2019
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  2. cipcip

    cipcip Owner of TutorialIndex.com VIP ★★★★★★★★★★

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    I would have taken the money. 1 euro to 950 euro turnaround, that is pretty great.
    Sometimes people tend to lose opportunities because they are too greedy.
     
  3. envos

    envos Established Member

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    My business plan includes buying a domain for at least 5 years, so I'm not interested in quick sales. In my opinion, such an offer in such a short time means that the domain has good potential. In the worst case I will lose a handful of euros, at best I will sell it at 3-4K.
     
  4. wizard

    wizard Domain Wizard PRO VIP ★★★★★★★★★★

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    should of taken it and reinvested in buying some more domains can't be to greedy....
     
  5. Elad n

    Elad n Top Member VIP

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    5 years is a lot of time with a lot of things that can go wrong.
    Remember your cab use your gains to invest in better names :)
    You can also decide on a hybrid solution when some names stay for a long period while others can be flipped
     
  6. cyborg1960

    cyborg1960 Established Member

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    after 5 years dudes in cafe of silicon valey will talk about newest far way
     
  7. Josytal

    Josytal Top Member VIP

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    If you can reverse your decision, do so. It may turn out to be the only one and last real offer you'll ever get for that domain. Your ROI is high enough.
     
  8. Hugo_Strange

    Hugo_Strange Top Member VIP

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    I would’ve taken the cash without hesitation and moved on.
     
  9. BrandVenue

    BrandVenue BrandVenue.com

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    If I were you I would have taken the offer, reinvest the money to one $1k domain and try to sell that domain for $5k. IMO that's way better strategy than waiting 5 years to sell this $0.99 domain for $3-$4k

    Even if my purchased $1k domain cannot be sold for $5k I would have at least a liquid inventory worth $1k.
     
  10. Windoms

    Windoms Established Member

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    A strict 5 year wait time on 0.99$ hand registrations doesn't make sense to me.
     
  11. lock

    lock PremiumNameDomain.com VIP

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    Based on the information a quick close even on first offer would have put you in better position than today since your asking.
     
  12. BaileyUK

    BaileyUK Top Member VIP

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    Myself, I would have spent at least a couple of hours trying to determine what the real market value for the cctld domain was.before rejecting It seems you had a bit of an ad-hoc approach to the listing in the first place if your belief is I'm keeping domains for 5 years.

    I've had quite a few 'Final offer' approaches over the years and the very few that do return to negotiate (at this price range) only ever up their offer by a $100 or so. I learnt never to squeeze a buyer if I can't justify the price I'm asking to myself.

    If your making regular sales then letting one go by is no problem, If however your finding your feet in negotiations it always ups your confidence in future negotiations to close a couple early on
     
    Last edited: Sep 4, 2019
  13. Levi_charlz

    Levi_charlz Top Member VIP

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    It all depends on the Domain, industry and the timing. I remember offering $950 and getting turned down on a VR domain (at the height of VR Hype) which l wouldn’t pay $1 for today.

    Can you share the name?
     
  14. envos

    envos Established Member

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    Just to be clear, this domain is a 1 dictionary word in a $10b industry. The domain name is generic, so any retail company can benefit from it.

    Yes, I only purchase domains that I will keep for 5 years. If I am undecided or if the period seems too long I don't register/buy that domain.

    I can get your point and it's a good strategy, will take in mind for the future.
     
  15. Riz M.

    Riz M. EmpireNames.com Gold Account

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    Spot on
     
  16. DomainRecap

    DomainRecap Top Member VIP

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    I think you made the right call, as there are only so many domain sales out there per year and if you pick a viable name with market potential then you have to make it count. Nothing below 4-figures (unless it's a junk name you were going to drop) and the higher the better.

    And this whole "but we only have a $1K budget for a domain for our company" means you're either talking to a guy emailing from his parent's basement or they're lying through their teeth, and the odds lean decidedly towards the latter.

    I'm going to go out on a limb here and say that within 3 months they come back at between $2500-$3000.
     
  17. DomainRecap

    DomainRecap Top Member VIP

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    I've had the exact opposite experience, and lots of lowball "final offers" have been upped significantly a month or two later, and in one case, I even got an apology from an exec for the behavior of their subordinate.

    On the other hand, I sold a few lower-end models for "final offer" because I was literally going to drop them and didn't feel like rolling the dice.
     
  18. emile123

    emile123 Upgraded Member Gold Account

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    I know you dont want to tell the domain, but can you share with us which ccTLD it was?
     
  19. eurorealtor

    eurorealtor okre.com VIP

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    Hard to tell without knowing the name and the country code.
     
  20. envos

    envos Established Member

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    I don't know why anyone is surprised but it is possible to register semi-premium domains from scratch.

    That said, I've always seen the world of domains as a real estate investment, if you buy to sell in a few months it's not the job for you simply because a sale doesn't happen in such a short time (you need to find the right buyer and you have to sell at "right" price).

    It's the same thing that I thought too. If it really is a company that has an annual budget of 1K to buy its own domain it is not worth continuing to negotiate.
     
  21. eurorealtor

    eurorealtor okre.com VIP

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    Most recently I received $1,000 offer for one-word .com with the following comment: "This is our max budget" I found the company @ Alibaba and their account shows $20mil. annual revenue.
     
  22. manpreet

    manpreet Established Member ★★★★★★★★★★

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    Thanks for sharing, it’s actually not a bad offer to consider.
     
  23. 55Domains

    55Domains Upgraded Member Gold Account VIP

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    Opportunity Cost.

    I would have simply accepted it. (and reinvested wherever)
     
  24. MapleDots

    MapleDots Domain Properties 2002 - 2019 VIP

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    99% of the time it's garbage you pick up at that price.

    To have a solid offer is a rare thing, I won't say right or wrong because I don't know the domain but in most cases it would have been a mediocre domain to pick it up at that cost.
     
  25. Name Manager

    Name Manager Branding enthusiast VIP

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    @envos A similar request to the author of the thread. Very interesting to know. Since, for example, the ammount of sales in the .de ccTLD is very different from sales in .tk
    Having a little more data for discussing your news would be more interesting and useful.
     

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