How dangerous is it to counter offer at Sedo?

[Shaniqua]

I got a $1,300 offer today at Sedo for one I bought at Go Daddy two weeks ago. I never sold anything this high before. Nowhere near this. When they offer this much is it their top money?

This domain is nothing real big I don't think, but it really would be someones number 1 choice if they needed it. The .net and others are at Go Daddy if they want it instead. I would have sold it for $50.

when you guys ask for double what they are offering does that scare them away?

I should take the money because the gas and stove and hot water is going to be shut off soon. we owe $700. i just dont know how far to risk losing this offer. the power is going to be shut off next month i am sure so getting more from this offer would help! I don't know what to do!

 

[coltter]

If your domain has the potential obviously you can ask for more,
otherwise sell the domain and pick up money for your bills.

 

[bmugford]

The policy of "never taking the first offer" is not a good one. Although it can make money in some scenarios, it loses money in others. All offers should be considered on a case-by-case basis. If you're running tight on cash, the first question that should always be asked before countering is: "Can I afford to lose this sale?"

This answer is right on the money. Each offer does need to be considered on a case by case basis.

You say that you would have sold the domain for $50 so it clearly can't be that great of a domain to start with.

Ask yourself this question. What is worth more to you - holding this domain or having heat and power in your house?

Brad

 

[DU]

Cant you send it to auction?

 

[Archangel]

And the best answer of the thread award goes to...

You hit it right on the head. I repped ya.

The policy of "never taking the first offer" is not a good one. Although it can make money in some scenarios, it loses money in others. All offers should be considered on a case-by-case basis. If you're running tight on cash, the first question that should always be asked before countering is: "Can I afford to lose this sale?"

To the OP: Take the money & pay your bills! Anyone who tells you otherwise won't have to suffer the consequences if your potential buyer goes *poof*

---------- Post added at 02:08 AM ---------- Previous post was at 02:04 AM ----------

That would more than likely kill the deal completely.

Most domains put into auction without 2+ interested buyers seldom swell for even 2-5% of the original price, thus it's not really worth it. And SEDO doesn't enforce the ales very well -- if you force the potential buyer to wait a full week, he might lose interest and not finish the deal, thus the $1000+ offer will vanish like a fart in the wind.

NEVER put a domain on SEDO auction unless you have 2 or more ppl interested in you domain. Take this offer and be happy

Cant you send it to auction?

 

[DU]

That would more than likely kill the deal completely.

Most domains put into auction without 2+ interested buyers seldom swell for even 2-5% of the original price, thus it's not really worth it. And SEDO doesn't enforce the ales very well -- if you force the potential buyer to wait a full week, he might lose interest and not finish the deal, thus the $1000+ offer will vanish like a fart in the wind.

NEVER put a domain on SEDO auction unless you have 2 or more ppl interested in you domain. Take this offer and be happy

Interesting. Personally I think that if someone makes an offer it should be accepted or countered... I don't think it's positive to take an offer and say ok "unless someone pays more". It kind of sucks and as a buyer they should be allowed to walk away...

That said...

I've read a number of posts recently where the deal fell through on a sale at Sedo... is this based on personal observation/contacts or hearsay ? Seems awful where you cant rely on the largest company of all. A competitor needs to step up

To be safe then I'd certainly pay for the necessities of life and move on as per the majority of advice. It's an excellent return.

 

[lincolndsp]

i'd take the offer and be greatful for it.

 

[XYdomain]

counter to the range of min 2k, if not take the money.

 

[DavidH]

I hate to accept a first offer even if it is far above what I was expecting as psychologically it leaves the other party wondering if they could have got the name for less than what they offered.

Usually when people make an offer they leave themselves some room for negotiating upwards and, in my experience, rarely offer the maximum they can wish to pay.

I always counter offer but given your circumstances any counter offer would have to be carefully considered to not frighten them away.

They can then come back with three options:
1) Dont want to buy
2) Dont increase the price but can agree a sale at initial offer level
3) Increase their offer.

Sometimes they dont want to buy but this suggests to me that they were not serious in the first place.

I have had a number of situations where I accepted the first offer and the buyer never went through with the sale.

Keeping their offer the same or increasing it, if accepted, means each party gets a win-win situation - the seller is getting the price they wanted anyway and the buyer thinks he has got a bargain since the sales price will almost certainly be less than the asking price, so everyone goes away happy.

Good luck with your sale.

 

[wot]

This guys case is unusual and if the money can improve his current lifestyle then he should take the offer to save any heartache and hope the sale completes.

From my own point of view I repeat,I would NEVER take the first offer. Even Sedo call it negotiation.

That's exactly what it is a negotiating contest between two interested parties.In this case an opening offer of $xxxx+ indicates one of 2 scenarios- 1)Bullshit bid for whatever reason-and a likely banning, 2) A very interested party and for me only has one response-counter.

Prior to the above check where "buyer" is from and how long they have been a Sedo member and their buying/selling record. A new member may well indicate an end user,a well established record is very likely to be a reseller.

Then-hope you got it right!

 

[Kate]

I would take the money. You pay your debt and still have a comfortable allowance.
It may be the initial offer, but that does not mean the other party is willing to pay much more. Sometimes bidders make a decent initial offer, hoping that it will be taken as a good faith offer, and accepted.

If you counter-offer, what will likely happen is that the other party will reply with a final offer bid. They might cancel negotiations too, in your circumstances I would avoid risk. Money will improve your present situation and you still make an excellent return. Good luck.

 

[syncvb]

Here is the story of my first offer on SEDO.
Buyer's offer: $180
My counter offer-> $2250 (I think the domain has that potential)
Buyer's counter-offer $400
My counter offer-> $2500 (I think that he can definitely pay for it)
The buyer cancelled the negotiation

After 15 days,an offer of $800 from the same person came for the same domain
but I thought the domain is really nice so the buyer is eager to get it.
So I countered it with $3000.
The result-He cancelled the negotiation again and now I am not sure whether the domain will get any more offers or not.

The moral of the story is : Be realistic in pricing and in your case,you were expecting a $50 sale,then just take the offer of $1.3K and enjoy.
Regarding sending it to auction,you can mail any potential end user that the domain is for sale at sedo,for a limited time.
This might get any more bids during the auction.

 

[gazzip]

I would'nt send it to auction at sedo after you have agreed to accept a price, I personally think it is an insult to the buyer and bad business practice.


.

 

[Archangel]

From my own experience, I've sold 6 domains at SEDO since last December. I've had about 8 or 9 offers in that time. With a few sales, I was given lowball $100 offers & countered them for a higher amount. They countered with very low figures ($125 to $150, I think). Since I didn't care about the domains, I took the offers. There were at least 2 or so that were lowballs & were countered with mid $xxx offers. The other party ended negotiations afterward.

Sometimes, a person's initial offer IS the highest they're willing to pay. Sometimes it's worth countering an offer and others, it isn't.

 

[DU]

I would'nt send it to auction at sedo after you have agreed to accept a price, I personally think it is an insult to the buyer and bad business practice.


.

I think it's strange that they allow this as an option. You accept an offer that's binding - but then allow gazumping. It's odd.

 

[wot]

I think it's strange that they allow this as an option. You accept an offer that's binding - but then allow gazumping. It's odd.

Sedo expect to make more money-probably as simple as that!

 

[Weber]

I would'nt send it to auction at sedo after you have agreed to accept a price, I personally think it is an insult to the buyer and bad business practice.

It can't go to auction if the seller accepts the latest offer.
Seller has a choice to accept the offer or send it to auction.
The buyer is aware of this, as they agree to terms in order to bid.

 

[badar1653]

I think you should take the offer..it is still a very good offer

 

[Smith]

We normally counter an offer, usually by about 5x-10x the opening.

This year we've had 103 offers in one sedo account, of that:

We cancelled the offer 35 times

They cancelled the offer 26 times

we closed a sale 42 times, avg sale $1500


If it is a lower quality name, make a lower counter offer, as as you're in a tight place financially, go even lower, counter with $1800 maybe settle for $1500.

Don't get greedy, or you'll end up regretting that you did and you don't have the volume of sales (as most people don't) to make up the difference.

 

[gazzip]

It can't go to auction if the seller accepts the latest offer.
Seller has a choice to accept the offer or send it to auction.
The buyer is aware of this, as they agree to terms in order to bid.

So what you're saying is that me(as the seller) can a)accept the buyers last bid and close the sale.

or b) Send it to auction "without" actually accepting the buyers last bid.

Hmmm, Either way the buyer will be required to pay the current bid price (if no more bids are placed by others) or he'll have to outbid any newcomers.

I would have thought that endusers (more than domainers in the know) would be very unhappy with this and I would be surprised if they are fully aware of this when they make their offer. The last thing an enduser wants is more exposure & competition.

To me its like shaking hands on a deal then trying to sell it for more to someone else. :tri:

I'd be interested to know how many sedo auctions end with no payment because the buyer found a "better deal".

Heres what it says on Sedos FAQ page

Start an Auction

When a seller receives an offer on a domain, he/she is able to start an auction within five (5) days. If the seller chooses this option, your original offer will serve as the reserve price. Therefore, the seller accepts your bid unless a bid for a higher amount is made by the end of the auction. The auction end time is scheduled for seven (7) days following the placement of your original offer.


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---------- Post added at 08:46 AM ---------- Previous post was at 08:42 AM ----------

This year we've had 103 offers in one sedo account, of that:
.....
we closed a sale 42 times, avg sale $1500

Nice :tu 103 offers out of how many domains?



.

 

[Smith]

Nice :tu 103 offers out of how many domains?

That is on a portfolio of around 16,000 names.