Handling an unsolicited domain offer

[dag]

Hi, I'm new to NamePros --this is my first post. What do you more experienced domainers do when you receive an unsolicited offer from a domain broker (on behalf of someone else) to purchase a domain name you already own? I've been asked what my asking price is -- I'm assuming I should not answer that specifically yet. I am, however, considering selling for the right price. Should I press them to make me an offer first?

How would you handle this? Your input is appreciated!

 

[drakewla]

Hello,

You should be very careful.

First, if the potential seller asks you for an appraisal, this is most likely a scam. There are many posts on this topic on NamePros, including http://www.namepros.com/warnings-and-alerts/157245-appraisal-scam-finally-got-it.html .

Hope this helps,

 

[NameClerk]

Do you know anything about the company or individual that the domain broker is representing? The larger the company, the more agressive you can be with your asking price. This is just one of many factors.

 

[Phronesis]

Be VERY careful of appraisal scams. Did the email happen to come from bonbon.net?

 

[dag]

Do you know anything about the company or individual that the domain broker is representing? The larger the company, the more agressive you can be with your asking price. This is just one of many factors.

Yes, the domain broker is associated with Sedo, and has a Sedo.com e-mail address. I've e-mailed them to confirm that she works for them.

So knowing that Sedo is legit, does the (still to be confirmed) fact that someone is going through them to acquire the domain mean that they're prepared to pay a higher price?

 

[fonzie_007]

What is the domain name? How much are they offering?

 

[dag]

What is the domain name? How much are they offering?

There's been no offer yet...she asked what my price was only. The domain is "4trackmind.com" -- obviously not something everyone would have use for, so I imagine the buyer has a specific need for it.

I'm not asking for appraisals on it, though -- just guidance on how one of you might go about negotiating the price, if you have any suggestions. If I end up agreeing to sell it, I'll accept an offer that feels right.

 

[oldratracer]

Is the Domain listed @ Sedo? If so... Then give the broker your "Highest" amount that you want for the domain and also allow her some "wiggle" room to work down from...
+/- % (never more than 20).....

You know what you "have to have" for the Domain and what you can live with...

Not my words but the those of the most recent T.R.A.F.F.I.C. Seminar:
Its better to be butchered like a pig than to be slaughterd like a hog....

Keep that in mind when naming your price....(Don't miss an opportunity for a sale)...

OldRatRacer

 

[NameClerk]

Yes, the domain broker is associated with Sedo, and has a Sedo.com e-mail address. I've e-mailed them to confirm that she works for them.

So knowing that Sedo is legit, does the (still to be confirmed) fact that someone is going through them to acquire the domain mean that they're prepared to pay a higher price?

Unfortunately, It doesn't mean that. Anybody can use Sedo's domain acquisition service regardless of what they're willing to pay.

 

[fonzie_007]

You should first ask them to make an offer. Sedo has an option that allows the prospective buyer to make the first offer. The fact that you don't have the domain listed doesn't mean you can ask them to make the first offer.

 

[mcaricofe]

A general negotiating tip (and this usually holds true no matter what's being negotiated):

The first person to mention a number loses.

So, my philosophy is, never be the first to mention a number. (Not that I always follow my own advice, you see. But I try.)

 

[maximum]

Mcaricofe

A general negotiating tip (and this usually holds true no matter what's being negotiated):

The first person to mention a number loses.

So, my philosophy is, never be the first to mention a number. (Not that I always follow my own advice, you see. But I try.)

Mcaricofe has a very good point there :imho: If you are the first to give a number, you risk either undercutting yourself (should they be willing to go higher) or scaring them off if you go too high for them to think you'll come down to what they have in mind. By forcing them into making the first move, you have a general idea (most of the time, anyway) how serious they are, and you can judge your response from there. I have not sold near as many domains as many here (so, take my opinion, considering that), but this principle applies to almost anything you were made a "cold" (unsolicited) offer for.

Good luck with the potential sale :tu:

 

[dag]

Mcaricofe has a very good point there :imho: If you are the first to give a number, you risk either undercutting yourself (should they be willing to go higher) or scaring them off if you go too high for them to think you'll come down to what they have in mind. By forcing them into making the first move, you have a general idea (most of the time, anyway) how serious they are, and you can judge your response from there. I have not sold near as many domains as many here (so, take my opinion, considering that), but this principle applies to almost anything you were made a "cold" (unsolicited) offer for.

Good luck with the potential sale :tu:

Thanks for the confirmation of what I had thought. I hoped that was the right way to go, given that I went ahead yesterday and asked the domain broker to make an offer (and yes, Sedo confirmed that she does indeed work for them, so all is legit here, I believe). No word back yet, but I assume that's to do with it being the weekend...

 

[dag]

So after all the discussion, here's the offer

The Sedo domain broker got back to me today with an offer of $500 from the buyer for my domain "4trackmind.com." She correctly points out that it has no traffic rating -- I had the page for future personal use, but so far I had only had one of GoDaddy's free starter pages set up there for a little over a year and had made no effort to link to it from anywhere. She also notes the somewhat awkward nature of the domain name, which I concede again, because I didn't choose it for its marketability, just because it was what I was looking for at the time.

So all things considered, I think $500 seems pretty fair, but should I still come back with a slightly higher offer, say $600 or $750? Or is even a counteroffer like that enough to scare off a buyer?

Your opinions would be much appreciated...

 

[IAmAllanShore]

Are you willing to risk losing the sale for an extra $100 or $200 ?
Is $500 a "fair price" to YOU?
Would you be crushed if you found out the domain was being bought by CocaCola and turned into its largest marketing device ever, and that you probably could have asked for $20,000?
Would you ever do anything else with this domain name?
All things to consider, and I know you can't find out who the buyer is, but just things to think about.
If you're in no rush for the $500, you might decline the offer, and say it's not worth your time at that amount (And drop the hint that a much larger offer would be needed).
Or, if $500 is a large amount to you, take the offer and don't look back
Keep in mind that Sedo is getting paid partly based on the size of the domain sale, so it's somewhat of a conflict of interet when they negotiate for a buyer, so they might be talking him/her into a higher price than what they were shooting for already...

Gosh... lots of things to consider

Sorry I don't have an "answer" for you, just more things to consider.

-Allan :gl:

 

[oldratracer]

Dagersh....great that they got back to you with an offer...NOW NEGOTIATE...I have been throught that process before...don't be afraid to ask for a higher number...no you will not "scare" the buyer off ...they "want" your domain.....they are using the service of a broker to solicit it....

I personally would ask for a larger number (you ask for whatever your comfortable with) me....I've done a little research into your domain and found it's centered in the "music" biz mostly....and around one hip hop group that cut a record called 4 track mind..(http://www.amazon.com/gp/product/B0...2/102-6372326-6461746?s=music&v=glance&n=5174)

Counter the offer....doesnt matter about the traffic...your not selling traffic...your selling eRealEstate...

Like Allen said above and I concur: "Is $500 a "fair price" to YOU?
Would you be crushed if you found out the domain was being bought by CocaCola and turned into its largest marketing device ever, and that you probably could have asked for $20,000?" You NEVER Know......

All they can do is come back with a "lower $ figure"...or ...you keep the domain ...

OldRatRacer

 

[dag]

Thanks for the advice, Allan and oldratracer...much appreciated! I think I will counter with a somewhat higher price after all...I don't feel that I can just go with the first thing they offer. On the other hand, I have my doubts about it being used for a major marketing campaign :hehe: , so I won't be going too high.

Oh, and although it is a music-related site, it was going to be for my own music, under the name "Four Track Mind," not the hip-hop thing you mentioned. Although who knows, maybe they're the ones looking for it now...

 

[Lasher]

Reading through this thread I was intigued to see how it turned out. No post on it since March 20th and the domain is still parked at sedo, so I am guessing not good?

 

[dag]

Reading through this thread I was intigued to see how it turned out. No post on it since March 20th and the domain is still parked at sedo, so I am guessing not good?

No, actually, it turned out pretty well: I asked what they were offering, the Sedo agent said the buyer was willing to pay $500. I countered with $750, and we ended up at $600. After about 3 weeks, the money came through and the transaction was completed. :sold:

You see the domain parked at Sedo because the buyer hasn't done anything with it. I actually had a small 1-page site at the domain address when it was mine.

 

[maximum]

Glad to hear it :bingo: