I got multiple $5,000+ offers for domain name: Do I try to start auction/bidding war?

[StonePillar]

Hi pros and experienced domainers,

I've received multiple $5,000+ offers by email for one of my .com domain names. I'd like to know what advice NP pros and experienced domainers have regarding the best way to increase the final sale price and close the deal.

Here's my situation:

A business person (buyer #1) contacted me by email and asked if a domain name I own was for sale. I emailed him and said that I was planning on developing the domain name but would sell it to someone who offered me enough to let me know he or she wanted to develop the domain name even more than I did. He then responded with a serious offer of $5,000.

I then contacted another potential buyer (buyer #2) who had contacted me a few times over the past couple of years to buy my domain name. I told buyer #2 that I had just received a $5,000 offer from someone else who wanted to develop the domain name. I told buyer #2 that I wasn't actively marketing the domain name and wasn't inclined to sell it for $5,000 because I still wanted to develop a website on the domain. I also said that I was considering offers from buyer #1 and others and that there was a possibility I'd sell it to buyer #1 or someone else. Finally, I told buyer #2 I wanted to give him an opportunity to make an offer for the domain name. Buyer #2 promptly responded with an offer of $5,500.

What is the best way to increase the final sale price? Do I try to move the email negotiations to an auction setting in order to start a bidding war? For instance, do I try to get one of the potential buyers to make an offer on, say Sedo, so that I can then push it to auction? Do I then contact the other potential buyer and many others who may be interested in the domain name and tell them all that the domain name is up for auction for the first time in over a decade and will be unavailable very soon?

Thanks very much for your help and advice!

 

[Kate]

Why not set a minimum price of $5000 at Sedo, then invite them to bid.

 

[JackDanielIV]

Doing it on a 3rd party site also makes it a legally binding contract.

 

[Fuzzylogic]

Dude anyway you can share the dot com? Haha, sorry, totally curious!

 

[gemstar]

Think of your domains as shelf stock. If you get a customer sell it! Then re-invest for the next venture.

 

[StonePillar]

Think of your domains as shelf stock. If you get a customer sell it! Then re-invest for the next venture.

I understand what you're saying. But one doesn't want seller's regret either. For example, some, including myself, have discussed Powerzone.com in the appraisal section of NP. Powerzone.com sold for $1,470.00 on July 20, 2010 at SnapNames. Powerzone.com then sold for $8,000.00 on Aug 19, 2010 at Sedo.com. Also, CamRoulette.com sold for $1,400.00 and then sold for $150,000.00 right after. See CamRoulette.com: Understanding Domain Sales Regret

Domain newbies can sell a domain name for what they think is a great price to a more experienced domainer who then uses his superior marketing skills and experience to sell the same domain name for a much higher price.

 

[NLP]

Powerzone.com sold for $1,470.00 on July 20, 2010 at SnapNames. Powerzone.com then sold for $8,000.00 on Aug 19, 2010 at Sedo.com.

Domain newbies can sell a domain name for what they think is a great price to a more experienced domainer who then uses his superior marketing skills and experience to sell the same domain name for a much higher price.

This is true. Connections make a big difference, and someone just starting out isn't necessarily going to have the qualified leads and personal connections with endusers and other people in the industry as someone who's been around for a while.

Everyone wants to avoid seller's regret, but as the saying goes, "don't fall in love with your domain names." If you can separate your emotions from everything, it helps. It's also a matter of what sort of position the seller is in at any given moment. If you know for a fact you're getting a great deal and you could use the money, take it. Sometimes a domain could never be a $25K name, no matter how hard you try.

Those great names that sell for astronomical prices do so because they sell themselves, and even though we all see them listed in DNJournal, those sales are rare.

I can understand where you're coming from, though. There is something to be said for the power of saying no, if your gut instinct says this is a name you could sell for significantly more years down the road. However, think of the time and effort involved - will you have the resources? Future sales are never guaranteed.

Good luck, and keep us posted.

 

[Ettore]

Everyone wants to avoid seller's regret, but as the saying goes, "don't fall in love with your domain names." If you can separate your emotions from everything, it helps.

That's totally true.

I would suggest you to put the domain on Sedo and see some bids then just choose the best one without waiting for ages.

Good Luck!! :tu:

 

[1rrr1]

I would also recommend putting it onto sedo auction. It also ensures that both buyers are serious, and not just emailing offers but not paying when you do indeed accept.

 

[Mystic Nobles Media]

Thing about putting it in auction like that is you may lose one or both of your buyers. When I am trying to work on a domain (buy) and the seller tells me I will put it on sedo I drop it. I am not going to be soeones auction starter. Also remember if you list it at sedo and you get $5500 as the winning bid 15-20 just went out the window so now you are down 1k from what you thought you were getting. tell both people give you the best offer(dont disclose the others to #2 very unethical also a crime called bid rigging) and take the best offer and save your auction comission

 

[1rrr1]

mystic nobles media. please check your PM.

 

[nielsencl]

...tell both people give you the best offer(dont disclose the others to #2 very unethical also a crime called bid rigging)

I had not heard of "bid rigging" before, but I don't see that telling people what offers you are getting qualifies it as that. Am I missing something?

 

[SmokinJoe24]

Wouldn't it only be bid rigging if the domain was in an auction?

Smokin Joe

 

[Mystic Nobles Media]

Wouldn't it only be bid rigging if the domain was in an auction?

Smokin Joe

Bid rigging would be correct. Shill bidding is in auctions when you bid to inflate the sell price. When taking bids on something it is illegal to tell one bidder what another has bid in an effort to entice that bidder to go higher. Your ethical choices are to tell all involved what the otehrs highest bid is and give them one last chance to make a higher offer or to tell neither and tell them to make their best offer

 

[StonePillar]

Why not set a minimum price of $5000 at Sedo, then invite them to bid.

How can one do that on Sedo? I know I can accept offers and then use an offer as the auction reserve price and minimum bid. But without first getting offers, how can I start an auction on Sedo with a reserve price of $5,000?

 

[nielsencl]

What I read in Wikipedia does not confirm what you are saying for bid rigging. It's like shill bidding, but different. It is done by those bidding and not by the seller. I don't blame anyone for doubting Wikipedia, but I also found this:

Bid rigging is the way that conspiring competitors effectively raise prices where purchasers — often federal, state, or local governments — acquire goods or services by soliciting competing bids.

Source: Justice.gov

It really does not matter in my opinion because this is not an auction. The buyer is taking offers and can tell those making the offers whatever he wants to in order to get the best possible offer.

 

[Kate]

How can one do that on Sedo? I know I can accept offers and then use an offer as the auction reserve price and minimum bid. But without first getting offers, how can I start an auction on Sedo with a reserve price of $5,000?

Well, if he got offers through E-mail, he can get the bidders to submit their bids at Sedo. He can also set a minimum price under which no bids can even be submitted.

 

[StonePillar]

Thing about putting it in auction like that is you may lose one or both of your buyers. When I am trying to work on a domain (buy) and the seller tells me I will put it on sedo I drop it. I am not going to be soeones auction starter. Also remember if you list it at sedo and you get $5500 as the winning bid 15-20 just went out the window so now you are down 1k from what you thought you were getting. tell both people give you the best offer(dont disclose the others to #2 very unethical also a crime called bid rigging) and take the best offer and save your auction comission

Thanks so much to everyone who has contributed so far to this thread! :tu:

I contacted both potential buyers by email and told them that the domain name was on Sedo and that I was accepting offers on Sedo.

Potential buyer #1, who had offered me $5,000 via email, offered me only $150 on Sedo a few days ago. I made a counteroffer that was far more than $150 and even more than the $5,000 original offer. I have not received any response from him.

Potential buyer #2, who had offered me $5,500 via email, made a series of offers on Sedo of up to $4,000. My counteroffers to him were more than $5,000. Potential buyer #2 said that his $4,000 offer was his final offer. Potential buyer #2 later emailed me and said that $4,000 was the "market value" of the domain name and that he understood if I wanted to sell it for more than $4,000. I asked potential buyer #2 what the $4,000 appraisal was based on.

Would the potential buyers have actually paid as much as they said they would, i.e., $5,000+, if I had accepted the offers via email? Who knows?

More to come...:wave:

 

[Mystic Nobles Media]

post the domain you may get more offers. I am always in the market for good high priced domains. PM it if you want

 

[domainer700]

CamRoulette.com sold for $1,400.00 and then sold for $150,000.00 right after. See CamRoulette.com: Understanding Domain Sales Regret

WOW! That's unbelievable to me... It's no wonder you're asking for advice, if I were you, I would to. Why not just try to sell it for super high (at the places domains normally sell for high)? If that fails, then just sell it for $5,000 or whatever people are willing to pay for it?

NOTE: I'm new at this so my advice shouldn't be confused with professional advice.

Hope all goes well for you.