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Is The Number Of Low Offers An Indicator Of Domain Value?

Labeled as strategy in Domain Buying and Selling Discussion, started by Bob Hawkes, Nov 18, 2020

Replies:
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2,209

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Is the number of low value offers received an indication of the worth of a domain name?

  1. Yes

    71 votes
    28.1%
  2. No, not at all

    115 votes
    45.5%
  3. It is a weak indicator of worth

    67 votes
    26.5%
Total: 253 vote(s)
  1. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    Some set their minimum offer amount low, and use interest as expressed by number of offers received, even low ones, as one indicator of the value of the domain name and whether it should be retained. Clearly this is not the only indicator, since you could also consider lander views, Whois lookups, sales of similar names, etc. But do you think number of offers is one valid measure?

    This is part of a NamePros community series of polls around the topic of setting minimum offer amounts. Please make sure to read the central article here, and vote in that poll, as well as all the linked ones.

    I will summarize the results of all of the polls, and the comments made, in a future NamePros Blog post.

    Thank you for your input,

    Bob
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    I'd say that the lack of any offers may be an indicator to some extend (the domain may not be good actually).

    As for the value... it means almost nothing imo. If there is an option to make an offer - many will send as low amount as the system allows them to. Which is normal. Human nature :)
     
  3. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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  4. Ostrados

    Ostrados EpicName.com VIP

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    This is tough question that needs deeper thinking that it looks.

    If we are talking here about low offers from end users not resellers then:
    • Receiving low offers on a domain means it have a value but it does not tell you what the value is.
    • Not receiving offers on a domain name does not necessarily mean the domain has no value, it only indicates there is no potential buyer yet. Some domains never receive an inquiry for years and then suddenly get sold for 5 figures.

    So my answer is: "No, not at all"
     
    Last edited: Nov 19, 2020
  5. sbweb

    sbweb Top Contributor VIP ★★★★★★★★★★

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    Everyone low balls on their initial offer. It's just basic buying psychology. Your goal is to pay as little money as possible for whatever it is. You don't start high and go higher. You start low and go up in small increments til a deal is reached.
     
  6. Sutruk

    Sutruk Top Contributor VIP

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    Yes, definitely. It doesn't mean that a domain without previous offers doesn't have any value, of course. But a domain with many offers from different people, it means there's something valuable in that one.
     
    Last edited: Nov 19, 2020
  7. DomainRecap

    DomainRecap Top Contributor VIP

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    This tactic can help gauge potential interest and future sales potential, not value.
     
  8. Haroon Basha

    Haroon Basha IZUQ.COM VIP Gold Account

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    Some insane, maroons wantonly offer low price for good domain names. Either they are ignorant of the current price or they have some mischievous and hidden motives to devalue the name. We cannot take low ballers seriously.
     
  9. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    it depends on the variables

    if you just registered a domain and a few days later, you start getting offers, then that shows interest

    if, the offers are higher than what you paid for the domain, then that's an indicator of increased value

    if, the offers are higher than what you paid, but less than your selling price, then it's interest and increase value, depending on the "$ amounts" of each offer.

    however, when you buy a domain and you know the value, where the BIN price reflects that,
    then any offers which aren't satisfactory, may validate the value, but are basically seen as just offers.

    thought it may motivate owner to increase or lower price, in such situations, if capital is needed, or not.

    imo....
     
  10. smarti

    smarti carpe diem

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    would be good to know the indication if the offer is coming from an end user or a domainer. I don't think that end users play this game, at least if there is a BIN option. As for domainers, they need to buy cheap and to sell high, therefore they probably create dozens of low ball offers on various domains in batch and are happy if couple of those are accepted.....to my mind, any BIN set by a domainer is inappropriate to other domainer and no end user would go for an offer without a broker.....so, no offer is no indication at all, imo.
     
    Last edited: Nov 22, 2020
  11. DomainBanana

    DomainBanana Established Member

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    # of offers can be an indicator of value but obviously it's not a direct correlation.

    Regardless, # of offers is one data point and more data empowers domain investors to make informed choices about our portfolio.

    Third parties who list our domains for sale aren't always transparent with offer/inquiry information. They should be.
     
    Last edited: Nov 22, 2020
  12. MYZONEUSA.COM

    MYZONEUSA.COM New Member

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    DEFINITELY!! IF YOU DON'T GIVE IT VALUE, THEN IT'S WORTHLESS. IT'S UP TO YOU TO DECIDE HOW MUCH POTENTIAL IT COULD HAVE. I'VE HAD DOMAINS APPRAISED PRESALE BEFORE AND THEN I LISTED THEM HIGHER. I HATE HAVING TO DIVULGE MY LOWEST EXCEPTABLE OFFER. I KNOW IT'S SUPPOSE TO BE HIDDEN,BUT I FEEL LIKE THEY CAN SEE IT. SO, I SAID DEFINITELY HAVE YOUR LOWEST PRICE SET. FIRST IN YOUR MIND. I LEARNED A FEW THINGS BY DAY TRADING STOCKS. 1, BUY LOW,SELL HIGH2. NEVER PANIC SELL. 3 NEVER IMPULSE BUY~FOMO.RESEARCH,THINK OF FUTURE POSSIBLE WORTH JUST LIKE DOMAINS. I DID CHOOSE MANY BECAUSE OF PERSONAL PREFERENCE, BUT I TRIED TO CHOOSE EASY TO REMEMBER AND SPELL DOMAINS.
     
  13. postscripter

    postscripter Upgraded Member Blue Account

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    SIMPLE: Yes it is one important indicator.
     
  14. AEProgram

    AEProgram Top Contributor VIP Blue Account

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    Anyone that has sold brand new items on ebay and had the make offer option enabled will understand that people will try. There are items that are brand new and have a known value range, for example, a brand new HP model non refurb laptop model ABC123 that sells for 1100-1300 can get offers on ebay of 50 dollars. Ebay allows you to automatically block offers below a certain number and that is a great feature or you might get really low offers.

    Domain names do not have a known value. For some names there might be an absolute minimum value (an amount you could get right now) but for the most part the value is in the eye of the beholder.

    When you allow make offers you will get low balls, sometimes the person cannot afford much more, sometimes they do not understand why it's worth more, many people simply don't know.

    I set minimum offers, I wish the platforms would show up optionally all the low offer attempts out of curiosity.
     
  15. postscripter

    postscripter Upgraded Member Blue Account

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    That is a great idea! Hopefully platforms owners here read it.
     
    Last edited: Nov 27, 2020
  16. Rory Ivey

    Rory Ivey Top Contributor VIP Gold Account

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    Low offers in no wise indicates the value of a domain name. For many reasons.

    1. The general public don't know much about how valuable and important a domain is. So without knowledge they will usually lowball, or be confused why a domain can be regged for $10 and why is it being sold for 4 figures etc. They may even be offended. (This has nothing to do with a domains value)
    2. Experienced domainers and business owners who knows better often low ball too. Some even lie to say they are a struggling student or bootstrapping. Why do they lie?? Because they truly know the domain is valuable, they know the owner will ask for its true value. So the have to pretend to be broke to get it as cheaply as possible. Plus they may be afraid the seller will increase the price even more if they reveal who they truly are(That's why i like buy now prices with the option to make an offer or just buy now).
    3. Someone's budget can just be low. That simple.
    4. All it takes is one buyer who wants your name.
    For example: I have a 3 word domain( IamCommitted(King)) where i received a 5k offer from a Jewelry company) Prior to that...offers weren't as high or non-existent. But i valued the name and knew someone offering me $100 was in no wise a proof of it's value. In its proper use..it's a valuable name.

    What i think low offers can show is:

    1. The difference between a premium and a super premium domain name. Like a name such as GoodFood.com imo is worth 4 figures and can be more. But i can see it getting xx and xxx offers alot too. However, If the name was food.com, people know better because they know their bluff is bullsh*t... there is no room to pretend you don't know that name is valuable. Even if you're budget is truly low.. you know to let it pass because no one in their right mind is taking you seriously to sell food.com for pennies. I'm sure those super premium names may get those offers but it's countered by real serious offers when you can just ignore those or counter high to see.
    2. lastly, If your name is trash... you already know. Don't pretend a lack of offers or low offers is what defined that for you. If you own Letsgo.com and you got no serious offers, then you know the name is still valuable. But if you own hairmonkeyfelix123.com and get low balled or no offers... then you should be ashamed needing a stat to tell you it's value.
     
    Last edited: Dec 4, 2020
  17. DomainBanana

    DomainBanana Established Member

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    Darpan Munjal, Founder of Squadhelp, recently shared that Squadhelp domains that receive at least 1 offer or inquiry are 5 times more likely to sell:

     

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