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.

 

[envos]

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.

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.

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.

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.

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

 

[emile123]

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

 

[MapleDots]

The domain was paid € 0,99 on GoDaddy.

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.

 

[Jurgen Wolf]

Domaining is also a question of luck... never forget this factor.
Legacy terms like "business plan" are irrelevant here.

 

[Jv1999]

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.

Nah. I got a 600 offer on voice///ed/// it in king a couple of years ago. Never got an offer since.

$1 to 950 would've been hot af if it weren't for sedo's 30% commish

 

[Jurgen Wolf]

If you prefer MakeOffer model - use your own or 3rd party Contact Form...
In terms of smooth negotiations and for higher results - any marketplace is a bad choice.

 

[Trader247]

In what time frame?

Do you mean from when i started with domains or when i reg'd the domain. If the first it was years until i got that $5k.

If from when i reg'd it, it might have been over 1 year but under 2 years...i am going of memory here to be honest. I was doing a lot of research on trends etc at that time and weed was something being legalised in majority of the states in the USA. Being too late to reg any decent names, i looked at other countries and got a UK weed name.. I think a domain investor purchased it via Uni with a strong first offer. There is a post here with the name and some detail.

 

[manpreet]

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.

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

 

[55Domains]

Opportunity Cost.

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

 

[Name Manager]

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

@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.

 

[LiamShiff]

I would've taken it. unless you have solid leads

 

[Jurgen Wolf]

It is 100% better to sell and then reinvest money than losing few years while dreaming about another buyers...

 

[4better]

Well, you won't go anywhere if you won't take a risk. Life is all about taking risks. Sometimes you win, sometimes you lose. In either case, you will earn something or you will learn something.

 

[UncleBrand]

domaining is a business apart from conventional business
you can have 10 queries in a few months,
then zero for a few years

all profitable business rely on cashflow period
so you better get a deal done at a profit when it's possible

if you can buy a domain at 500$ that is worth 20-100X, you take the money and you get that domain name

 

[frank-germany]

if are not targeting $10.000 USD with that domain
it would have been wise to accept

let sedo know you accept it
and let them close the deal

 

[FolioTeam]

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.

Congrats on the sale

 

[alienbaba]

Great ROI!

 

[poweredbyme]

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

In what time frame?

 

[Arfy]

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.

That real estate comparison does not compute. If I put a house on sale for $350k minimum offer and I get a $385k quick cash offer, I would probably take it. If I chose not to take and waited 5 years (with the house still on the market), the property will likely lose value as people don't like to buy houses that have been on the market for so long.

Nevertheless, I would have accepted. I would suggest putting the minimum offer higher if the amount is not something you are happy with. If you are solely basing the decision to sell on how long it took for an offer to come in, I find it perplexing.

 

[poweredbyme]

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 list it with BIN only or would do it after the 950 offer. BIN works better for most domains. BIN eliminates lengthy offers-counter offers negotiations and creates urgency feeling in buyers as anyone is far only 1 click from buying it.

I think Sedo is the leader in selling ccTLD, especially de and other European ccTLD's. You might borrow most of your success to Sedo.