advice Got an offer for 5K for a LLLL . COM Counter or no?

[blogspotter]

Just when I am starting to get into domaining,
I just got an offer for 5 K from a godaddy broker on behalf of a buyer.
What should be my first response?

It is a short brandble .com

 

[johnn]

It depends on the LLLL.com name

LOVE.com - No
ZXKW.com - Yes

 

[RJ]

Counter, counter, counter, counter!

Always counter.

 

[RJ]

Relevant, from Twitter

 

[NameBuyer.com]

Well it also opened my eyes. I have collected a lot of domain over the years, and I got serious about domaining. Not sure why I never thought of domaining as an investment. Hope to get some modest success.

Launching a business for a startup is a long road even before their launch date.

For my fluux(dot)com sale last year, it was 3 months between the first contact ($5k offer), and when the agreement was accepted at $15k. If I were to do it today, I would have pushed more towards the $25k range.

In your case, what I would do in the meantime is put up a lease-to-own option on your landing page. That makes it affordable for anyone with a serious, or semi-serious plan no matter what price you choose. I've been paying $300 a month (24 month payoff) for GreatBrand(dot)com with no intention of launching it until next year. If I can pay $300 a month, knowing I'm not going to have any income, imagine what an actual business with income would pay for a domain they need. If your 4 letter acronym actually says something, then there are only 1-3 ways they can re-arrange 4 letters to still make it say the same thing. If yours is the best of the 3 (or only one available) then I would price it accordingly.

If we look at Morgan Linton's article below, you can see that startups were being advised to spend $10k or less on a domain, then they upped it to $25k, then again to $50k (this was in 2016). So taking $5k on a domain like that seems like it could be a huge disconnect from even a startup's expectations, based on how they are being advised.

https://morganlinton.com/how-much-should-a-startup-spend-on-a-domain-name/


Also, the acronym and the demand for it matters. If we look at the recent sales of almi(dot)com for $117,500 and fibr(dot)com for $75k by NamePros members, you can see that it can be quite high. It's important to research the potential buyers by looking at all other extensions taken and variations of the domain in use as well as recently filed trademarks in the "WIPO Global Brand Database".

NameWorth can give you a starting price range idea (for free), but you 100% need to research the potential buyer and price according to their needs, and the value it would bring them.

I'd also take into account real world expenses people pay to run a business. I had an import ceramics/products business that I ran for years. The rent on the 1,000 sq foot warehouse was $1,000 per month, forever, and an 1,000 sq foot warehouse is among the smallest commercial spaces available. Typically a medium sized space is closer to 10,000 sq feet and costs around $10,000 per month. To have 2 full-time employees, it can cost anywhere between $4,800 per month, up to $25,000 per month depending on the type of work being done.

If you are dealing in decent names, and by decent I don't mean Tier 1 outstanding domains, but lower level Tier 1 & Tier 2 type of names, we should be living by Ricks words below. We also stop talking about the $25k, $50k, or $75k price and negotiate off of what might be affordable to their plans. If they don't have the cash, do what Rick did. Like I posted in a discussion a couple days back, he sold Teem for $36k, but because he "asked" for equity, this turned into $1.15 million when the company was aquired. Even $36k may sound high, but if you work out a payment plan it could be $600 per month ($36k/60 months). Then ask them for stock/equity in the company and if they get acquired, you get to cash out your 10-12%. Asking for equity in the company can be an easy decision for a startup because a true startup usually isn't making money in the next 1-2 years anyway.

Take for example, vivint.com, which sold for $5,000 in 2010. Yet this company has been investor funded from day 1. $787 million in total funding. They sponsor an NBA arena. Don't be the guy that sells the next vivint.com. Chances are, if people were to weigh your domain vs vivint (pre 2010), they would choose yours. If it's a startup they will likely take an equity deal in lieu of a high purchase price. If they don't take it, and still want the domain, it may indicate you've caught a whale, because few large corporations or heavily funded startups would agree to an equity deal.

https://twitter.com/x/status/1156858192711888896

 

[gilescoley]

Always counter. I never accept the first offer.

 

[Ostrados]

It depends on the name value ofcourse

Do this If else:
if offer is higher than actual value then Accept
elseIf offer is just right then counter little higher (to eliminate any overpaying doubts at the end user side)
elseif offer is lower than actual value then counter much higher

 

[RJ]

An offer like that means it's probably a startup company or a company looking to rebrand. You are probably not dealing with a fellow domainer, so price it accordingly.

Four letter domains that are brandable are actually quite rare and valuable. I hope you counter offer with a high number ($40k+)

 

[karmaco]

I agree to counter higher. People around these parts generally like to sell for too cheap. If you have no urgent need for cash- counter. Easy.

 

[Windoms]

Im late.

DUDE, GD brokers are the most open.
Don't you dare counter only 10k.
Hit 10x, 50k.
They will go back and forth with buyer until deal is done.
Buyer is not shying away when they are in contact with broker. GD brokers are very professional they will make sure buyer makes another offer and present it to you.

Also 5k opening offer from broker is a lot.

Here's how it goes down with GD broker.

Broker: My name is xx I am a broker at GD etc.... I have a buyer who would like to offer $500 for xxx.com. Is this domain for sale, what is your asking price?

me: Hello, we can sell $5,000 buyer pays commission.

Broker: I shared the info with buyer, their maximum budget is $1000. You will net $800 at this price.

me: let buyer know we are willing to close at $2500, commission included.

Broker: client advised that their final offer is $1500. They are able to pay today but will be moving on if this does not work. You will net $1200.

If buyer refuses 5k and broker offers $1000, don't drop to 2.5k it's a mistake, drop to 4 or 4.5k and see the answer.
If broker says buyer is about to leave the boat then stop messing around and take the money if you are happy with it.

 

[blogspotter]

I am also kinda excited because I have been analysing a lot of domains that I want to buy of late so this will give me some capital instead of infusing fresh cash.

 

[johnn]

I never accepted the first offer as they think their offer is overprice and walk away with cold feet.
You have to make them feel like they get a bargain by counter offer and settle at a lower price than your counter offer.

 

[Altoz]

I really don’t know how we can be throwing numbers around without even knowing what the name is. Sure we can say get the most you can but there are many factors to consider. If you get too greedy your stuck with a name and no cash. As one big business man said. In a competitive market sell low but high volume then you will make more than the one who waited to sell high .
I still say unless your name is universally compatible take the money. You’re more safer with 5k in hand than a string of code collecting dust

Just the fact that he got $5000 initial VERY strong offer indicates, that the buyer is serious and want's it...

 

[Mister Funsky]

Just when I am starting to get into domaining,

You joined in 07 and just now getting started!?!?!

Mask the letters somehow if you want someone to offer input...the post above sums it up...depends on the letters.

 

[Mister Funsky]

if I should at least give a counter,

I will almost always counter because the initial offer is usually too low...this may be a motivated buyer for one reason or another so that is why the number is higher. Do a careful search of the letters and see if there is a new product or company they can relate to.

ADD: if it is the same as the site above, you definitely want to increase

 

[Mister Funsky]

What is masking??

Put the letters up in some way (image, convoluted, distorted, etc) so they won't be picked up by the search engine bots. Maybe four words with the letter in each word made bold inserted into a sentence. It is a shame we have to do things this way, but until you sell it is smart not to have the name indexed.

 

[forge]

Forget about TMs, they're meaningless in this equation. Focus on getting your domain sold!

 

[blogspotter]

I mean, if I should at least give a counter, and if so what would be appropriate as general negotiation etiquette.
Also It is more like lovn. Com

 

[blogspotter]

You joined in 07 and just now getting started!?!?!

Mask the letters somehow if you want someone to offer input...the post above sums it up...depends on the letters.

Ikr. Lost decade
I used to buy domains i like, not with the intention of selling, mostly as end users. Only recently I thought of trying my hand being that i have been into online marketing for over a decade
What is masking??
It is letter vo wel letter letter

 

[Donnyd]

GD brokers don't care. Just ask them how near to 20k can you get. Don't just leave a number. Direct me on name maybe I will buy it if it is outstanding. Plus they are not bound by shi-, it's like a blank offer from a blank person. GD will not force them to buy if the back out at 5k, 10k or whatever so just 4x and don't leave money on table. Also look for recent TM that may have been done.

 

[MA000]

accept the offer as long as you need the cash !
please, don't risk with losing cash that you need for urgent business !

 

[Silentptnr]

Well it didn't work out

So can you tell us the name now?

 

[johnn]

LOVN.dating is an active dating site.

 

[TheBuyerz]

I would accept if you hand regged it or bought it for cheap, this will give you more cash to buy other domain names you are targetting.

If you think you will recieve more offers in the future and it worth more than what it is offered, you should counter offer ... I suggest you to appraise your domain name by an expert first.

 

[korganian]

Tell the Godaddy broker you will take $10k for it.