Need your opinion - Inbound inquiry from fortune 500 company

[Joshh71390]

Hello, so I got an email from Neilson Group today - Inquiring about one of my keyword domains. I mean they basicly control anything you watch on tv, and this seems like a domain which will be a category killer.

Only issue was I was in class and asked for an offer. The man responded a few times and then but a very low xxx range. Do I take the money and run, or do I send somthing crazy back? They made i think 6billion profit last year, am I going to lose the sale if I try to counter?

Or maybe I should speak to a broker?

What do you guys think?

 

[tomcarl]

A couple of tips, if I may...

1. Same reason you may not want to post the exact domain being inquired about without masking it, next time don't mention the exact company name of the inquirer in a post like this on NP without masking it in some way. They're brand-monitoring and can easily forward this post to whoever would be in charge of making this type of acquisition.

2. In my personal opinion, A million/billion-dollar company should always have at least $xxxx at disposal for a domain name, even if they're going to use it as a "throw-away", short-term, marketing campaign domain. I doubt they're paying their webmasters $250 dollars to develop the domain so why should you accept $250 for the domain itself? Also, take a look at the domain and ask yourself how much time/resources would it take to develop this domain out? If it's a streaming service, they're obviously not going to get it off of the ground with peanuts. Price it accordingly.

3. It's more understandable for company with money to only be willing to spend or offer low-mid $xxx (and mean it) if you're making outbound inquiries because it's likely only a trophy domain to them, but an inbound inquiry means they have a specific plan for it so $xxx should never be accepted without a 4 figure counter.

4. Lowball $xxx offers from these companies can be a negotiation tactic to keep your counter-offer more grounded, while if they were to make an initial $x,xxx offer, it can leave them open to you countering at $xx,xxx or more which is what they don't want and probably won't spend if it's only a small project.

5. This is valuable experience gained and a lesson learned so you should not feel bad about it in an way, you've just made $250 bucks on a name you likely paid $10 for. Now re-invest, buy 10-15 domains from GD Closeouts and turn this one domain sale opportunity you had in your account into 10-15 opportunities for a sale in your account. Grow your portfolio. It's a numbers game.

Remember, At the end of the day, should this sale not even close or the buyer backs out (if it was actually just for him and he was a dreamer), you'll probably be feeling bad about not getting $250! But don't accept that price in the future.

G'luck

 

[hugegrowth]

From a negotiation standpoint, countering a $200 offer with $250 to what you think may be a big company, on a short .com domain with commercial potential, isn't a good tactic. Better to have taken more time, got some opinions, and at least counter with a much higher amount. A buyers first offer is almost never their best offer. Worst case is you lose out on $200 and keep the domain, which is easy to absorb. At a minimum the counter here should have been $1000 or $1500. I probably would have countered with a low 5 figure amount, or no less than $5000. The point here I guess is to learn for next time.

 

[infosec3]

"Very low xxx", cheap multi-billion dollar corporation. As others said, not knowing the domain makes it hard to give you advice, but very low xxx could be even $100. Not good... If you do not need $100 or $200, of course you should not take it. Even if the domain is not premium, but barely decent, a mid $X,XXX is what I would ask for or even higher in this case.

I would remain polite and professional at all times and my counter offer would always leave room for negotiations.

P.S. - Are you sure it is from Nielsen? Is it coming from an official email address? Just asking...

 

[kemjika11]

OP- if you sell low, its because you allowed YOURSELF get psyched out.
What they need the domain for? does that matter? They want the name and thats what mostly matters. Next is how much their real budget is and how badly they want the name. Sometimes we hang around these forums so long we think 100-300 USD is sooo much money. its not!.........especially once business interests and emotions are involved.

 

[infosec3]

A member here just registered StreamingEDM.com

Wise move...

I remember when HealthcarePayments.com sold for $35,000, I registered it in a few other extensions and sold each for hundreds of dollars only days after registration.

 

[maxtorz]

So he already agreed to take $250??
WOW.No fortune 500 company will reach out to a domain owner and have their budget maxed out at $250.

Here's my approach to such inquiry and this can pay off BIG:

1.Reply short of being offended to their $XXX offer, but BE professional don't burn your bridge;
2.If they ask, how much do you want for the name, reverse the question and reply "what's your budget?"
3.I would also ask how and when they can complete the transaction if you end up striking a deal?
By asking a bunch of questions without talking money first, you "qualify" them.

After you qualify your potential buyer, then ask for 20k for example or more depending on the intel you gather.
If they reply saying it's a crazy number, or counter from $250 to $1000(hypothetically) just say that You would love to do business with them BUT you don't have too; thank them for their time and remind them your offer is valid 7 days.
2 things can happen next: 1)They won't reply or 2)They will increase the offer

SIDE NOTE:
At all times remember that YOU are the owner of the domain and YOU are in control of the negotiation, NOT them. Once you loose control of the negotiation, you will end up with well $250 in this case instead of $20,000-$30.000 sale.

 

[Kate]

What if the buyers maximum budget for this domain was $250?

That could mean he was not the right buyer. Sometimes you have to say no, unless you have reason to think there won't be another potential buyer ever again. The first offer received is often the last too...

Just because they are a Fortune 500 company, doesn't mean they are prepared to pay huge sums.
Just because they are a Fortune 500 company, doesn't mean they understand the value of domain names any better than other end users.

Still, $250 is pocket change. IMO the OP must have left money on the table. He could have asked for more just to make his time worthwhile. That doesn't mean he's taking advantage of a well-funded company. A consultant usually earns more than $250 in one single day. The average amount of invoices processed by that company must be significantly higher than $250.
So he quoted 2K but accepted 250. The other party must be thinking he was desperate to sell and the bluff has paid off nicely. As an added bonus, the employee will perhaps be congratulated by his boss on his negotiation skills, having secured the domain name for a 1/20th of the allocated budget...

 

[RJ]

$xxx offer? That's just a feeler to get things started. You need to counter back.

$10,000

 

[trp3]

If you invest in the right domains you never should be afraid in losing a deal IMHO.

 

[infosec3]

At first sight, the domain looks as a not worth even the registration fee. However, doing some search I find that EDM is used for Electric Dance Music on Google. So your name is Stream EDM. I even find some results with EDM in the same paragraph with Nielsen:

EDM Music & Dance Songs Chart | Billboard
www.billboard.com/charts/dance-electronic-songs
Billboard
This week's most popular dance/electronic songs, based on radio airplay audience impressions as measured by Nielsen Music, sales data as compiled by ...
‎Zedd · ‎Calvin Harris · ‎Martin Garrix

 

[RJ]

Lots of companies try to buy domains by having employees use personal emails.

I get these types of inquiries a lot--anonymous buyer wanting the domain for a "personal use" (as-if that would drop the price). I usually point them towards one of the hundreds of gTLDs available for them, perfect for personal uses.

 

[james haw]

The company having a massive amount of financial resources doesn't thereby mean you could have obtained more by negotiating higher. Of course it's possible, but businesses with good profit and plenty of cash floating around have so because they're shrewd.

Their position could have been one of multiple things, but mainly:

1. They would have gone to 4 figures+
2. They would only have ever paid low 3 figures

If you'd pushed and it was 1, then you'd have made more money, but you could also have :
Pushed and it was 2, and you could have lost the sale entirely and been sat with $0 and a domain name that realistically you'd likely never sell to someone else, certainly not for more than mid-low 3 figures.


I suggest wholeheartedly you stop wondering and worrying about it all now, and be happy for the positive side:
You made a good sale with a high percentage profit margin

 

[nvdomains]

I unable to understand the purpose this kind of threads on Namepros and experts who are giving their valuable advice.

How can you share advice without even knowing the domain name.

 

[owntype]

I received an email from a VP of Tesla Motors in the past. He contacted me via his business email but he's just trying to buy the domain name for his own use, not for Tesla Motors Inc. We finally completed that deal.

 

[NetworkPearl]

You should know how much your domain is worth and don't be unrealistic with the price.

I use various methods to determine the price of my domains.Say I value a domain at 5000$ , selling it for under 4000$ would be against my rules.

 

[Jman92]

if its live stream related then I would definitely counter with a high xxx or low xxxx.

 

[mad409]

Hard question to answer without knowing the domain. If it can be used by someone other than them then shoot back a price you're wanting.

 

[johname]

he started 200 he went 250 and I just took it .

You took a $50 bump? lol

Good Luck on your next transaction.

 

[infosec3]

But all and all. I am ok with the profit margin here.

That's fine. The most important thing is whether you are satisfied with the deal or not. In addition, if you think your domain is worth $250 and not four or five figures, that is also fine. Not knowing the domain, I could not tell.

However, if the person who contacted you is indeed from Nielsen, ask yourself: When will I again have such opportunity to sell one of my domains for a good four or five figure price? The purpose of that question is not to torture yourself with what did not happen this time, but to put you on guard for the next occasion.

That was on a serious note. On a more relaxed note now, what if the guy comes back and says the following?

''I think your domain is worth much more. Have you heard about domain name appraisals? I have connections with investors who would be willing to pay 10K or 20K for your name, but they would not do so without an official appraisal. It is only $29.99 and you get your money back once the deal is completed''.

 

[Joshh71390]

domain name is streamedm.com

 

[johname]

The plot thickens.....

There no thickening, unless you back out of the sale.

Good Luck

 

[ProDomanico]

Should have done your research, before ... and that would have help you plot well from beginning..
Congrats on your sale..
BTW, I wanted to know what made you register StreamEDM.com very curious to know...
Because I left many domain which made no sense (initially)

 

[hugegrowth]

Really should have asked for a lot more, especially knowing who the buyer is and now the use of the domain, a short .com
The average domainer doesn't get in this position often.
You can always lower an asking price but can't go up easily.
Worst case you're out $250.
If they give any hint of backing out let them, or give them a time limit to pay up and hope they're slow.
You have to be willing to play a little hardball and waiting to get the best price.
Good luck

 

[The Durfer]

low xxxx firm.

 

[ivey]

You're not risking much to reject a xxx offer, so respond with $5000. That is pocket change for them. They went out of their way to email you so they won't runaway if you counter. Let them know your far apart..Increase their offer or just give them this asking price 5k.

let us know how the deal goes.