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

[envos]

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.

 

[cipcip]

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.

 

[BrandVenue]

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.

 

[wizard]

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.

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

 

[Windoms]

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.

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

 

[Elad n]

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.

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

 

[Josytal]

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.

 

[envos]

In the end I did some investigations and decided to sell it at the final price of 1.3k
It's my first sale, it couldn't have been better.

 

[BaileyUK]

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

 

[Trader247]

Congrats on the sale. My first big sale was $5k USD was a handreg in .com.

By selling and picking up a few more names you replenish your inventory, increase your odds of generating more/regular cash flow x fold, possibly cover renewal costs for a few more years and most importantly for you, given that you are relatively new to this, you'll learn a lot more during the process outlined above as opposed to sitting on 1 domain name waiting to get more than the $1.3k you closed at.

 

[Hugo_Strange]

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.

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

 

[Levi_charlz]

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?

 

[envos]

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.

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.

 

[lock]

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

 

[EmpireNames.com]

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.

Spot on

 

[eurorealtor]

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

 

[envos]

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).

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.

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.

 

[envos]

A week later after the closing of the negotiation here is another offer (I believe from the same company). Let me explain why it is € 1.359.

Here is the auction:
Company: € 849
- Me: € 1.359
Company: € 950
- Me: "I close the negotiation"

Now they're giving me the asked amount. I'll wait few days but I already know what I will do, unless someone changes my mind. I want to take it for few years.

 

[DomainRecap]

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.

 

[DomainRecap]

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.

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.

 

[eurorealtor]

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.

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.

 

[Bob Campbell]

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

I agree. A few years ago I hand registered Officialized.com ( unfortunately I accidentally let it expire.)

I hand registered DiscoveryDesk.com sold it for $2,850. to someone who found me through who is.
The next day I hand reg DiscoverDesk.com

A few months ago I hand reg Levitaste.com and I just turned down an offer for $350.

I also hand reg PerfectlyPutt.com a few months ago.

 

[falez]

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.

COLOSSAL ROI

 

[Jurgen Wolf]

And regarding ROI...
It should be calculated per whole portfolio.
1 domain doesn't mean anything.

 

[cyborg1960]

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.

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