HELP - Offer recieved

[zero_haze_au]

I just recieved a phone call from a lawyer (large firm) to make an offer on a domain that we hold.

I was caught of guard and rattled off a price of the top of my head.

Within 5 minutes of ending the phone call an email was sent to me with an offer slightly lower.

The offer is in the low xxxx region, with 24 hours to respond.

The name in question however is a popular global phrase.

My business partner suggests to make a higher minimum offer that we will accept, however i feel like taking it and not risking the offer.

Saying that i'm a terrible gambler so it is rather odd for me to accept an initial offer.

Based on the fact that it came from a large law firm, and they emailed me the offer within 5 minutes says to me that they probably didn't get back to the client suggesting the client has a much larger budget???

please answer with your best wisdom as i will be going with the majoritys answer. SHould i accept or raise.

 

[weblord]

you can always email back asking if that's their best offer for the domain, and justify by proofs of your research about the domain.

 

[1901gt]

I would probably accept it. :D

 

[-REECE-]

It sounds like low xxxx would mean a lot to you. Am I correct to assume that? If the money really would make a difference for you, by all means consider taking the money. They might be willing to go higher, they might not -- are you prepared to take that chance?

There really isn't a right/wrong answer if you're getting well over reseller value for the domain here -- you'll have to consider cost/benefit of accepting or countering an offer received.

Personally, I would counter. First offers generally aren't the highest a person is willing to go. In addition, the fact they're getting a law firm to send the offer would suggest at a minimum that I highly doubt countering several hundred higher is going to make them change their mind. I wouldn't recommend asking more than you already quoted them at unless you're really willing to lose the sale. I walk away from a deal instantly when anyone plays that game with me.

 

[wot]

Personally I would NEVER accept a first offer. IM-HO.com

 

[zero_haze_au]

well majority rules, i'm countering tomorrow.

wish me luck

 

[gear]

Waiting For best Offer ...

 

[Michael]

Good luck, I would definitely counter as well.

 

[bobbie]

I took an initial offer on a valuable domain without any negotiation ... the offer was considerably more than what I paid for it and I'd rather have the money than the domain. If I can convert a domain I'm holding for a reasonable profit, I do it.

 

[Federer]

Always remember that virtually all buyers are secretly prepared to pay at least 33% extra of their 1st offer.

If you would like a little extra pocket money, do the math and counter with initial offer + 33%. There is an extremely high chance that he will take.

 

[dabusk]

Of course it is hard to answer without knowing the exact domain name. If you have never received other offers on the domain or at least none which were in the same price range I would definately accept their offer. However if you feel you are selling the domain too cheap, I would probably respond to them that your initial price offer was a fixed price, take it or leave it. i would not counter them with an offer higher than your original, that would make them angry and not willing to do any business with you.

dabusk

 

[sundari]

Give your counter offer.

Face it with guts and boldness. Just give it a chance and just make your way in. You can really do it. you will surely get it.

All the Best for your counter offer....................

sundari. :santa:

 

[Spade]

Always remember that virtually all buyers are secretly prepared to pay at least 33% extra of their 1st offer.

Based on?

 

[Federer]

It is the unwritten principal that applies to most strong generics

 

[Spade]

It is the unwritten principal that applies to most strong generics

..... and your getting this data/info from?....

 

[krx]

Is there a big difference between what you quoted him by phone and what he offered? If not I would just accept the offer and be done with it. If it is substantial then come down 1/3 of the way toward his price and settle at a 50/50 split between the two.

As for getting rattled and making a hasty quote, chock that up to the cost of tuition (unless you greatly undersold the domain). Next time no doubt you'll remember to take your time ~ and that's a valuable lesson.

 

[Federer]

..... and your getting this data/info from?....

It is just my firm belief.

And it has often proved to be the case. And as stated earlier, everyone knows that the 1st offer is rarely as high as the buyer is prepared to go, as I am sure you agree.

 

[Spade]

It is just my firm belief.

And it has often proved to be the case. And as stated earlier, everyone knows that the 1st offer is rarely as high as the buyer is prepared to go, as I am sure you agree.

I do Agree that a first offer is typically lower then a buyer is willing to go. What im trying to understand is your figure of 33%. Is this based on experience? something you've read?....

My opinion is a fair portion of buyers, when making a "real" first time offer, are willing to go 200-300% more then their initial offer. That is based on my experience and I will typically counter with 500% more then their initial offer and finalize the price in the middle.

 

[Federer]

Yes, this could typically apply to cheaper domains.

But based on the small amount of experience I have, but also based on the many recent $xx,xxx sales I have concluded, I have noticed the 33% tendancy in the majority of cases. Of course, sometimes it's a little more or a little less.

200-300% is much too high concerning offers for higher category domains. If I get a $20,000 offer, I doubt I will be able to conclude at $60k.... but probably (with little effort) at $30,000.

 

[Spade]

Yes, this could typically apply to cheaper domains.

But based on the small amount of experience I have, but also based on the many recent $xx,xxx sales I have concluded, I have noticed the 33% tendancy in the majority of cases. Of course, sometimes it's a little more or a little less.

200-300% is much too high concerning offers for higher category domains. If I get a $20,000 offer, I doubt I will be able to conclude at $60k.... but probably (with little effort) at $30,000.

Bare in mind your offers are coming from users which you have directly solicited. I am using the OP's example of an unsolicited offer.