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

Labeled as advice in Domain Buying and Selling Discussion, started by blogspotter, Jul 23, 2020

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  1. Windoms

    Windoms Top Contributor VIP

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    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.
     
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  2. Windoms

    Windoms Top Contributor VIP

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    50k, assuming the domain could be worth it, of course.
    like lovn.

    avhe, no.
     
  3. Altoz

    Altoz Established Member

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

    Mytz.com Top 4L Seller IEIE.com CUTU.com KKIK.com HRAD.com VIP Gold Account

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    The quantity and quality of a domain name determine the price of a domain name,
    The most important thing is luck
     
  5. rajdomains

    rajdomains Established Member

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    You have received an offer from GoDaddy broker, which means they have purchased GoDaddy brokerage service to enquire about the domain. You must counter a decent price near their offer.
     
  6. Pazu

    Pazu Established Member

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    Counter and if they don't counter back, you can still accept their initial offer if you want.
     
  7. The Durfer

    The Durfer Top Contributor VIP Blue Account

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    say $7500 firm. I think that is the true value since they started with $5k. good luck. Update us. ty. :)
     
  8. Windoms

    Windoms Top Contributor VIP

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    Domain buy service is not broker presenting an offer.
    Its buyer paying GD to have a broker negotiate the best price within 30 days. By terms, doesnt mean buyer has 30 days to wait after you.
    GD brokers are professional, they wont let buyers get confused because of your countering.
    Thats why I said if broker doesnt say buyer is about to move on, you can still go back and forth as long as you know how to communicate.
    If you dont know how to communicate/negotiate properly, ask someone in PM.
     
  9. 4better

    4better Established Domainer VIP

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    An initial 5k offer means something. I did receive before a 5k offer and it was a brandable name. Countered 30k and buyer kept silent. I kept silent too but buyer came back after a week then offered 6k, next 7k, then 8k and finally he made his final offer at 8.5k which I accepted. Negotiation took about one month but it's worth it. In your case, if I were you, I would counter high.
     
  10. gemstar

    gemstar Top Contributor VIP ★★★★★★★★★★

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    But your buyer could have just walked away and you would have nothing. I really don't understand the need to squeeze someone for a little extra when the goal is to get a buyer and sell. I would take the 5k and turn it into 10k
     
  11. CobraKai

    CobraKai Established Member

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    Just ask yourself "How bad do I need that 5k?" Then you'll know what to do.
     
    Last edited: Jul 26, 2020
  12. Mister Funsky

    Mister Funsky Top Contributor VIP

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    I have not read the whole thread since I spotted it first but I saw a response touting how 'great' things could be with their broker service. There a couple posts about how professional they are, and they may be overall, but the last couple contacts from them regarding as many names have been less than useful. I countered on the inquiries and never got a counter offer or response (my counter to the initial offer was reasonable). I eventually (within 6 months) sold two of the names as the interested party(s) finally sent me a direct message through the place I had them parked. So, the 'brokers' at gdaddy may be great, but I had a couple of less than impressive experiences. I would imagine they are much better now that some of the people from Uniregistry have come on board.
     
    Last edited: Jul 27, 2020
  13. gemstar

    gemstar Top Contributor VIP ★★★★★★★★★★

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    Everyone needs that 5k. That's why we are in business .
     
  14. Jv1999

    Jv1999 Spamming Exo: Dark Merc of the Exo-Tower VIP

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    This is the epitome of advice lol. Short, sweet, but a wealth of everything!
     
  15. MA000

    MA000 Upgraded Member Blue Account

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    please, let us know the updates .. have you countered or accepted ? ^_^
     
  16. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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  17. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    I didn't counter or anything. I asked the broker to discuss a counter offer and he still hasn't replied my email. I followed up yesterday also and left a voicemail. So much for professionalism.
     
  18. shojib

    shojib Top Contributor VIP

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    Counter
     
  19. uzver

    uzver Established Member PRO

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    So... Any updates on this? Curious :xf.rolleyes:
     
  20. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    Well it didn't work out
     
    Last edited: Aug 21, 2020
  21. johnny55

    johnny55 Established Member

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    That's too bad, maybe in the long run though you'll be glad that this sale didn't push through. :xf.smile:
     
  22. uzver

    uzver Established Member PRO

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    It was an entertaining read regardless, and I wish you good luck with the future sale 😉
     
  23. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    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.
     
  24. NameBuyer.com

    NameBuyer.com Top Member PRO VIP Gold Account ★★★★★★★★★★

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    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.

    upload_2020-8-21_14-27-43.png

    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.

    upload_2020-8-21_12-18-15.png


    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.

    upload_2020-8-21_13-53-51.png



    upload_2020-8-21_13-55-11.png

    upload_2020-8-21_13-56-46.png






     
    Last edited: Aug 21, 2020
  25. Silentptnr

    Silentptnr Top Contributor VIP

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    So can you tell us the name now? :)
     

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