NameSilo

How to respond to lowballs

Located in General Domain Discussion, started by topdom, Apr 5, 2020

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14
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742

  1. topdom

    topdom Top Contributor VIP

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    Some domains can be sold to domainers or endusers for a low price, like low 3 figures. But I think when an offer remains in 20-200 range it mostly means it is a broker offer and not real offer. In such a case there are many negatives.

    -Actual buyer hiding behind curtain, so if you sell you may be missing a big sale.

    -Even if you are wililng to sell for a low price, like, by accepting the last bid, in the worst case scenario; after you counter you don't get new offers, even the last offer, and dropping your counteroffer that low won't help either.

    -If you wait long, both big sale and small sale possibilities would disappear, because the actual enduser gives up (100x offer made by the broker sounds too high)

    -You may sense it is a broker offer, and still accept it, but it remains unpaid.
    .........................................................
    How to beat such extremely common scenario.

    1-Do outbounding to find actual buyers, or someone who is willing to pay more

    2-Start an auction

    3-List everywhere with a fixed price and fast transfer

    4-Ignore or cancel

    5-Renew the domain, to send a signal

    6-Develop, to attract s.e. traffic
    ..............................................................
    Which ones above make more sense? Would any of them work?
     
    Last edited: Apr 5, 2020
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  2. lock

    lock DomainUsed.com VIP

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    4 when I am annoyed or have so much on that can't be bothered.
    But then the there is another approach which is overcoming the objection.
    Did they give a reason eg we are a startup? You then give facts on start up with justifies price you need to find out the objection to keep communication fields open as a next step.
     
    Last edited: Apr 7, 2020
  3. pb

    pb Established Member ★★★★★★★★★★

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    7. tell the expected price but offer payment in installments or leasing (rent) at 1% of the price per month.
     
  4. sircc

    sircc Established Member ★★★★★★★★★★

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    Here's my advice. Simply reject low offers. Point them to your BIN, assuming you have one.

    If you don't and suspect it's a broker pitching for a client, ask questions. Always do your best to find out who the buyer is in all situations and adjust accordingly.
     
  5. lock

    lock DomainUsed.com VIP

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    "I am a student' could be an excuse to respond as i do see that one.
    Response might be your co-offer. Or/And stats, keyword sales history if of benefit.
     
    Last edited: Apr 7, 2020
  6. brandpainvestment

    brandpainvestment Account Suspended (Warnings)

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    4 and little 7.

    4 when offer is too low from expectation & 7 when they are giving moderate offer (Low offers varies person to person, if their low ball is equal to your moderate offer).

    If they give moderate offers then only we can consider installments.
     
  7. Kingslayer

    Kingslayer Top Contributor VIP

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    I always reply to them.

    A $12 offer resulted in a $1500 sale for me last year.

    $10-$100 is a lot of money for some people in some countries so they might be offering all they have offering what they are, appreciate any interest on your domains and give people the time of at least a response back even if you are well apart on figures.
     
    Last edited: Apr 8, 2020
  8. jmaurya

    jmaurya Top Contributor VIP

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    When any try low start my counter offer......:xf.grin: 20200408_175954.jpg
     
  9. topdom

    topdom Top Contributor VIP

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    Problem is: We are dealing with a broker, and there is probably a hidden real enduser buyer behind the offer. This broker won't talk or negotiate. And quit quickly, and mostly likely won't pay.. For example if you turn their offer into an auction, then the sale delays, and then the actual buyer disappears, and sale remains unpaid.....
    Everyone pretends buyers and sellers talk and come to an agreement. This almost never happens. A broker shows up and makes much lower offers than what the enduser would pay, he may be representing a GD client.
    I asked a buyer what he plans to do, he said no longer interested I made several offers (as if many offers mean a lot- all lowballs). Couldn't admit he was a domain investor or a broker. and
    We are bidding against brokers and there is no way to win this battle. Endusers contact registrars and registrars hire brokers who try to buy for a low price instead of connecting buyers and sellers, for a fair game. I'm trying to find ways to reach actual endusers and bypass those brokers.
     
    Last edited: Apr 8, 2020
  10. pb

    pb Established Member ★★★★★★★★★★

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    Once I got a 10 PLN offer, responded with 12,500 PLN (~$4k at the time) and it got accepted & paid without further ado. Lots of other times responding to a seemingly disrespectful offer with an actual expected price led to negotiations and a sale. Of course far more often the other side would just go silent. Nothing unusual in this business.
     
    Last edited: Apr 8, 2020
  11. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi
    the above paragraph paints an vague picture and requires any responder to give a vague scenario reply

    because,
    since one doesn't know the domain in question, then it may only be worth $300 or less.
    therefore, no lowballing.

    additionally, it could be another domainer making the offer and not a broker or end-user.

    the simplest answer to question in title is, just say "no thanks" if you don't like the offer

    imo...
     
  12. Riz M.

    Riz M. EmpireNames.com VIP Gold Account

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    always do your counter offer
    i sold couple of names for five figures and they started with 100-500 $
    so we never know
    keep calm while negotiating 🤗
    #stayhome #staysafe
     
  13. infosec3

    infosec3 Top Contributor VIP Gold Account ★★★★★★★★★★

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    My approach is to not let the potential buyer dominate the psychological battle in the sale negotiation. If you are annoyed by the low-ball offer and respond with an insane amount that not even you belief, you have already lost. Be calm, thoughtful and professional at all times. I have OneTower/(com), a name I sold, started with a $100 offer and I sold it for $4000. Acertified/ (com), another name I sold, also started with $100 and I got $2900. Many other domain investors have even better stories about turning low-balls into great sales.
     
  14. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    I will either ignore or outright reject lowballs, especially ones that include a message that just reinforces the lowball offer. I spend the majority of my time on deals that might actually pan out.

    Brad
     
  15. X7 Ryan

    X7 Ryan Owner, X7 Media

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    Good timing for this thread. In the past I had simple sent a counter offer for a little less than my BIN that went nowhere. Recently I have been going back to those low ball offers telling them I have lowered my price because I see buying opportunities so I am all for selling a 3xxx or even low 4xxx name for 2xxx to reinvest in an underpriced domain that I can list for xx,xxx (especially once the economy starts to recover) but they always come up with the funniest excuses for why its only worth $200 even when I can show them 3xxx+ end-user comps. I must admit I almost feel like its not worth the effort to try to reason with them.
     

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