advice Negotiation experience

[Gnags]

Hi all

I bought a dropped .com domain name recently for rougly 3000 usd.

Posted it for sale on a marketplace directly and only 4 days after(!) i got a offer ( listed it as "make offer) for 2000.
Broker got on and i put an asking proce of 45,000 usd that was shared with the buyer. They then make a new offer for 10,000 usd stating that this is their best and final offer.

The company the buyer represents is maybe the only company that is really willing to pay 5 figures, its not a very generic domain name but its the buyers exact match brand and they were funded, series a, 6 million usd recently and are in both consumer and b2b space.

Do any have experience in this matter? How is the best way to proceed?
Should i stick with the line and go down 10-15 percent or more or just reject the offer or?
Will appriciate any input from folks who have been in similar negotiations.

Thank you!

 

[biggie]

The company the buyer represents is maybe the only company that is really willing to pay 5 figures, its not a very generic domain name

Hi

a $7K profit in less than 7 days, from someone who may be only buyer?

imo...

 

[Gnags]

Hi
I appriciate your reply and yeah, it sounds like a sweet deal. But broker takes 20% as well. Taxes takes 35% in my country... you get the picture
Im fairly new to domain investing, had a few good sales, one huge, but want to learn more on the negotiation aspect. Cause who want to leave money on the table, right?
Have you been in a similar negotiation?

 

[biggie]

Cause who want to leave money on the table, right?
Have you been in a similar negotiation?

Hi

i've been in similar situation, except didn't have 55% deduction from sale price facing me.

and in your case right now, you're basically only getting your investment cost back.

when you look at it like that, there really isn't any money on the table, to be left.

so now you're in a position where you have to ask for more, just to make a profit.
and if you or buyer walks away - what other potential buyers would be interested?

imo...

 

[Crypto2020]

Not exactly right as taxes are on profits and not on sales .

Taxes would be on Profit = Net Sales - Cost of Aquisition = (10k-2k)-3k = 5k
[This is a simplistic view as you can claim other business costs as well before coming at your taxable profits such as office rentals, etc, so the taxable profit would be much lower than 5k]

So your profit after tax would still be 3-4k plus.

Now if the buyer is indeed the only one that will offer 10k+ for your domain then your options are as follows:

1) Negotiate, Buyer agrees to a higher price. Best outcome.

2) Take the current offer and more than double your investment in a week or so.

3) Negotiate, Buyer walks. Worst outcome. You might be sitting on a loss of 3k+ for infinity.

I would personally choose option #2 in this scenario as @biggie was also suggested.

 

[karmaco]

You must have thought alot of this name to pay 3K for it. I definitely wouldn’t take the offer but that’s me. I would counter offer my final offer even if thats coming down a bit.

This final offer line is a tactic often used. I would not be surprised if it wasn’t another domainer If the domain was fought over at auction.

 

[Sam1234]

If you want to PM the name to me, I will gladly give you my opinion.

 

[Gnags]

Thank you all for taking the time to share your views on this, much appriciated!

I will update here how it all will play out. I am still undecided, but i will get there

 

[Gnags]

Hi guys

So here is how this sale played out. It was Dan.com who acted as the broker on this.

After the buyers initial offer for 10k I went down to 38K or 36k in a "lease to own" plan in 12 installments.

The client returned the price reduction with a firm stance on the 10K saying that this is indeed the max they will pay for this domain as they do not think it it that important for them.

The broker and me decided that this was probably what they were willing to pay.

So actually I accepted this 10k offer, with a little worry that the buyer would get second thoughts as i just so quickly.

But ok they came through and in 2 weeks i turned a 2800 usd into 10,000 usd (after broker fee 8000).

I havent had any sales in a long time so i decided to take a quick win here and get some more capital to invest more.

The buyer was an italian company operating under .it tld, but they have offices in other countries and a had an idea that they wanted the .com as I think they are looking to expand further. They have .org and .io and .me all redirecting to their website.

Looking back i do believe it was too much to 2800 usd for this in auction as it was probably only this company that was willing to pay near 10k for this.
I probably wont do this again for this high cost price or at all.
But it worked out, thankfully.

Please add your experience with buying a non generic domain name that you believe only fits 1 or just a few companies and your thoughts on this. Would be interesting to hear.

Good day to you all!

 

[bestdomainsbcn]

Hi Gnags,

I've been reading all this conversation and your case could be similar to a sale I'm trying to get. I still don't have any offer but just asked for advice with a post in Namepros recently.

My case:
I own an interesing .tv with some features as:

-One word domain (less than 10 letters)
-GD Valuation: 3K $
-Age 2016
- More than 100 extensions

I'm preparing an strategy to find end users to offer the domain at a fixed price in popular markeplaces like Sedo or GD. I've found one particular company that paid 5K $ this year to buy a niche domain to redirect to their website (as your case). Appraisal for this domain is 4K, they paid 5K. The domain word is the extact name of the company.

Their company website is a .com but not the exact name of the company. Also was registered in 2020, has got less valuation 1.5K and 14 extensions.

I think my domain could be interesting just to redirect their site or use in a specific project with .tv.

Finally, the main domain extensions for as .com, .net or .org are registered but are not active, so I think .tv is a nice opportunity to improve SEO.

Any advice to offer a competitive price?

BR

 

[Gnags]

Hi br

If they do not hold a trademark for the name you have, then I would reach out to them directly.
I think its difficult to get a broker on as it is to low payout for them with 5k or so.

I dont have experience with .tv domain names, so cant say how sought after for companies this extension is.

At Dan.com any offers over 1k makes you entitled to use they broker service. So maybe put it for sale there.

Best,
Thomas

 

[bestdomainsbcn]

Thanks Br,

yes, I've started an strategy to reach the company directly and some other brands that could be interested. Also listed to offer them to buy there in a safe way.

Best,

BestDomainsBcn

 

[Gnags]

Cool, wish you all the best. Hope you get it sold

Best,
Thomas