Need help with a potential sale through SEDO

[gametube101]

Dear Friends,

I need some help in estimating a potential sale through SEDO. I was in business a while a long time ago and stopped it for some time now.

Last year I bought a .CO domain name on a whim and sitting on it at the moment. It is parked at the register and not linked to SEDO in anyway. It has whois guard.

Couple of days ago someone from SEDO contacted me saying there is a client who is interested in buying the domain and asked me if I am interested to sell and if I had a price in mind.

I asked him to make an offer. I have the following questions?

1. Why did the client not contact me directly? By contacting me through Sedo, should I consider that this client is serious?
2. it is a name not with much keywords or metrics so it must be a potential name for a new business or an existing company on .com
3. Since there is a Sedo agent involved, I take it needs to be at least not in hundreds. Am I correct in this assumption?

I would love to have some cash but I am not in a hurry. While I do not want to sell the name for peanuts, I do not want to miss the chance to sell the name either.

Any advice is greatly appreciated.

Thanks,

 

[gametube101]

Hello guys
I am learning so much from this thread. Hopefully it will be useful for everyone reading.

One thing that I do not understand is why would Sedo not go to the maximum potential offered by client. That would make their commission increase, no?

Anyway after a day after starting he will enquire with the client, the agent came back with 500. I am going to counter with with min 2000 and Bin 3000.

 

[BaileyUK]

Great that your benefiting from the thread, I think everyone likes to add from their own experiences. there's No point in going back with a Minimum and a buy it now price. from Sedos point of view there's already a maximum (unknown)
what they will do is go back to their client if your just above their approved maximum. otherwise tell you what it is if your well above. Which pretty much closes everything anyway - unless you want to wait to see if the client comes back with a new offer, after knowing the current maximum.

as for your question on Why Not go straight to the maximum, Often crossed my mind until I realised Sedo would rather complete a fast sale and to how they see both of their clients (and their) benefit. Nobody to look back and think they were stitched.

As I said you will get told the maximum if you respond well outside of the range. my guess it's probably around 800 to 1200.

what I can add 'from experience' is once they tell you the max amount. That is what it is, I've never had a follow-up once declined (two occasions)

I think you'd be surprised at how many sellers want a fast sale as a priority and Sedo know that, so it's worth seeing where the ground lays from their point of view. If your 5 times over their max they are not going to waste any further time

 

[gametube101]

You’re overthinking it. Decide what the domain is worth / what you might be willing to take for it, and respond. Get the ball rolling.

As far as “brokers don’t get involved with low ball offers” - poppycock! Brokers will get involved with anyone interested in a domain and will try to get them up of course past the initial offer, but will also pass along in the end whatever offer they can get out of the buyer. Your receiving a 500 offer proves this.

I agree to your points. At least, it is a first for me to be contacted by a Sedo broker. At least, I am learning and this thread will be useful for others.

Point taken about the offer of 500$. however, it is to be noted that in all the emails so far, the broker clearly encourages me to give a price so that they can check with their client. I would suggest 2000$ and that would roll the ball. At least that they can tell me the max and I can take it from there.

Thanks,

 

[BaileyUK]

Yep agree with xynames. despite most domainers opinions Sedo would rather be well known for completing a 1,000 domain sales at $1,000 each month than a single block buster $1,000,000 sale. The bread & butter stuff is what keeps 50 people employed

*meant to add to previous post the two negotiations that went nowhere I was at 3 to 4 X the clients max

 

[gametube101]

Ok I replied with 2k and that should reveal the client's max. Once that is revealed it would make things easy.

 

[frank-germany]

Maybe you haven't been contacted by their day-to-day team. I can assure you the brokerage team final offers are not always above mid $xxx. This particularly applies to domains outside of dot com

true

when I have been contacted by a sedo broker that always ment $xxxx plus

 

[gametube101]

The broker said he will see if he can get more to table. Fingers crossed.

 

[BaileyUK]

Great, I've been looking-out for your update.

My guess, and I do generally like dealing with Sedo is that money is possibly already there. (it's a negotiating response) it's looking like they want you at nearer $1k

 

[gametube101]

Great, I've been looking-out for your update.

My guess, and I do generally like dealing with Sedo is that money is possibly already there. (it's a negotiating response) it's looking like they want you at nearer $1k

Sure, I will keep updating till the closing. I ended up replying with 2250 instead of 2000 as if it give them a room for negotiation and go at least to 1750. It felt like the broker wanted me to state a price whatever it maybe.

I don't know if I mentioned this before, but it is 5L.co

Also, as per their website, the client needs to commit to a max with the request. I honestly can not see SEDO going through a nego for 69$ fee and not see the nego succeed.

 

[BaileyUK]

thanks again for the update gametube101, I'm now expecting the finally offer to be between 1200/1500. With that probably being the max all along. (was there from the start) still Sedo done their job

 

[frank-germany]

thanks again for the update gametube101, I'm now expecting the finally offer to be between 1200/1500. With that probably being the max all along. (was there from the start) still Sedo done their job

sounds like you are the buyer....

 

[BaileyUK]

sounds like you are the buyer....

I'll take that as a nice compliment but, I can assure you I'm not. I don't even know the domain.
The seller (gametube101) without disclosing the domain, has given enough information to help with what, I believe the Sedo purchase negotiations will follow. It's not so much a pattern as just a similar process.

It helps to put yourself in both shoes, which I try to do in any Sales negotiation. In this particular instance, I have dealt with Sedo brokers at a similar price level on several occasions. So that probably helps too

 

[frank-germany]

I'll take that as a nice compliment but, I can assure you I'm not. I don't even know the domain.
The seller (gametube101) without disclosing the domain, has given enough information to help with what, I believe the Sedo purchase negotiations will follow. It's not so much a pattern as just a similar process.

It helps to put yourself in both shoes, which I try to do in any Sales negotiation. In this particular instance, I have dealt with Sedo brokers at a similar price level on several occasions. So that probably helps too

the offers made by Sedo brokers reflect by no means
the amount the buyer is willing to pay
as sedo brokers don't know either

 

[xynames]

No one knows!

 

[BaileyUK]

There are a couple of things to bare in mind to help come to a reasonable outcome with Sedo

It is easier in that nobody is asking you to justify your asking price and wont bring that up in negotiations. You can expect negotiations to come to a conclusion fairly quickly. (time is definitely money for them) they (Sedo) have already pretty much established what is available to purchase is fairly reasonable by their own standards and worth a shot

Nothing is different from dealing with direct client/seller but just quicker. As the original poster was asking for help I am just trying to add from experience and give him/her confidence in going forward.

Yep, Not knowing the buyers funds is darn obvious.

 

[.X.]

The broker is simply a Liaison, there are several reasons for people to use them, I have done a few broker sales at Sedo, in one case it was a company that i would assume didn't have time to negotiate a "Offer - Counter Offer" and i also assume that the company was clueless as to the value of the domain and used the broker to set the offer, and lastly i assume the buyer wanted non disclosure. So it was best for them to hire a broker at Sedo. The sell came out the same as the sales between myself and the individual who purchased the name, with the exception of me knowing the actual buyer.

in my case, I didn't see a big increase in the final price negotiated between my self and the Sedo broker, or the actual buyer. Go with your first mind pricing on putting a price on your domain, It is easy to get really hyped up and go way overboard on your initial pricing far to high.

Best of luck and keep us posted.

I ran and checked my Sedo acct, total sales 12, 3 sales by Sedo broker. so i am just slight of a few brokered sales

 

[gametube101]

Okay after two days of intended silence from me, I get a reply from Sedo. The broker says it seems 1500 is the limit for their client and that the client will also be paying the fees at that price. He wants to know if this would work for me.

Originally, as soon as they come close to 1500, my intention was to take it. Part of me wants to ask 1700 final. But I believe the broker has dealt with me very professionally and all sounds fair for me.

I will wait couple hours before I reply. What do you guys suggest?

Thanks,

 

[BaileyUK]

I think seeing your original target price was $2k, and as you say Sedo have been pretty quick in upping from the original $500 opener, I would probably settle. I agree the broker and sales fees all on the buyer at around $350 is good feeling. Is it worth tying to Squeeze another $200, To me No, Different matter if you want to hold firm at $2k. Their is a good chance the buyer may well go there depending how quick he wants to close the deal, but he may choose to stall.

 

[BaileyUK]

I think seeing your original target price was $2k, and as you say Sedo have been pretty quick in upping from the original $500 opener, I would probably settle. I agree the broker and sales fees all on the buyer at around $350 is good feeling. Is it worth tying to Squeeze another $200, To me No, Different matter if you want to hold firm at $2k. Their is a good chance the buyer may well go there depending how quick he wants to close the deal, but he may choose to stall.

 

[gametube101]

Originally wanted to ask 2k but ended up asking 2250

 

[wwwulff]

I will wait couple hours before I reply. What do you guys suggest?

Sedo has recently had a .co auction (end of July) so look at the end prices there (see below) and compare it to your name and when decide if 1500 is reasonable

• vegas.co $18,500
• hire.co $10,099
• weather.co $9,999
• blackjack.co $6,000
• healthcare.co $4,999
• debt.co $3,900
• card.co $3,555
• map.co $3,056
• store.co $2,855
• holiday.co $2,850
• legal.co $2,500
• bets.co $1,700
• accounting.co $1,610
• gravy.co $1,002
• gamble.co $1,000
• cabs.co $1,000
• survey.co $999
• answer.co $999
• venturecapital.co $999
• ledge.co $800
• rom.co EUR 500
• abx.co $49
• formulas.co $499

 

[gametube101]

Sedo has recently had a .co auction (end of July) so look at the end prices there (see below) and compare it to your name and when decide if 1500 is reasonable

• vegas.co $18,500
• hire.co $10,099
• weather.co $9,999
• blackjack.co $6,000
• healthcare.co $4,999
• debt.co $3,900
• card.co $3,555
• map.co $3,056
• store.co $2,855
• holiday.co $2,850
• legal.co $2,500
• bets.co $1,700
• accounting.co $1,610
• gravy.co $1,002
• gamble.co $1,000
• cabs.co $1,000
• survey.co $999
• answer.co $999
• venturecapital.co $999
• ledge.co $800
• rom.co EUR 500
• abx.co $49
• formulas.co $499

This is very useful, thank you, really appreciate it. Per this, 1500 is reasonable. Knowing the the name, I can only tell that buyer should it for perception/company value than the name metrics for sure.

 

[wwwulff]

The names above are probably sold to investors, but nevertheless they give a hint of what to expect for a good .co and if your name is an average name, then 1500 is probably not a bad price even if is to an enduser

 

[.X.]

They have excellent brokers, I would take the 1.5k , that is a nice happy medium for everyone involved

 

[gametube101]

Agreed guys, I replied saying I agree to the offer of 1.5K. Let us hope the rest of the process goes as smoothly as well. I can not thank enough everyone that helped me in this process so far.

I will give final update once the payment is done and the name is transferred.

Thanks,