question New to domaining, need advice with my first inbound query

[kashmiri]

Greetings, Everybody,

I am new here, and very much hope you can offer me a wise advice.

A year ago or so I bought a .com domain which, as I have now found out, is strikingly similar to the name of an upcoming product by a large global corporation, hyped to hit $500m in annual sales. The difference is that my domain has the letter i where the product will have y (but same pronunciation). It is a random name, not alike any common word.

I haven't really used the domain; just parked it with some random pics - no ads, no logos, just the domain name and a neutral image.

Now, someone suddenly emails me, offering $4k.

What would you do?

On one hand, $4k is a nice profit on a $12 domain. On the other - who would offer that much money out of the blue for what is a weird, unpronounceable word, other than someone acting on behalf of the company? Or yet, maybe someone who will resell it to the company?

Can you advise? I would hate it if I sold it for $4k and then the buyer resold it for, say, $40k. What could be the price level in such situations?

Can the company use UDRP in such situations?

Thanks,
k

 

[noneisnone]

the decision is up to you no one can make it for you without knowing the name it will be hard to give you any advice

 

[RJ]

It is probably the big company, buying it as a protective measure before their big launch. (smart move!)

$4k is a very decent offer, but my experience, companies that email with an offer rarely reveal their actual budget with an initial offer, so I almost always feel safe with a counteroffer of at least 50-100% higher. You can lower your asking price later if needed.

Best of luck in your negotiations, and welcome to NamePros!

 

[kashmiri]

It is probably the big company, buying it as a protective measure before their big launch. (smart move!)

Possibly. Or could it be someone who got to know the product name and wants to make a quick buck?

$4k is a very decent offer, but my experience, companies that email with an offer rarely reveal their actual budget with an initial offer, so I almost always feel safe with a counteroffer of at least 50-100% higher. You can lower your asking price later if needed.

That's an invaluable hint, big thanks.

Best of luck in your negotiations, and welcome to NamePros!

Thank you

 

[hawkeye]

I agree with RJ, just counter back at 6 or 7k, and if they agree, take it. That's a nice ROI on a 1 year old reg. GL.

 

[kashmiri]

Thanks @hawkeye, too.

How are such domains transferred? The enquiry came from what looks like a disposable email address (like, john0862@gmail [not the actual one]). Shall I use escrow? list the domain on Sedo? On eBay? Anyone could share their experience how such deals are concluded?

 

[RJ]

You are welcome anytime!

Possibly. Or could it be someone who got to know the product name and wants to make a quick buck?

People wanting to make a quick buck flipping a name won't start out with an offer of $4k.

The only thing I would warn about is the possibility of an appraisal or brokerage scammer. If they start asking you to get a paid appraisal or to use a sketchy escrow service, do not proceed.

Best of luck!

 

[RJ]

Thanks @hawkeye, too.

How are such domains transferred? The enquiry came from what looks like a disposable email address (like, john0862@gmail). Shall I use escrow? list the domain on Sedo? On eBay? Anyone could share their experience how such deals are concluded?

Epik escrow is my recommendation. Fees are very reasonable. https://www.epik.com/services/escrow/ There's also escrow.com and other services available.

In some cases, a buyer might be willing to forego escrow and pay you directly by wire. I've done many four and five figure transactions without using escrow, but I really do recommend using a service like Epik if you are new to domain sales as they will handle everything.

 

[kashmiri]

The only thing I would warn about is the possibility of an appraisal or brokerage scammer. If they start asking you to get a paid appraisal or to use a sketchy escrow service, do not proceed.

OK, good to know, will definitely heed your advice.

 

[kashmiri]

Epik escrow is my recommendation. Fees are very reasonable. [...] There's also escrow.com and other services available.

In some cases, a buyer might be willing to forego escrow and pay you directly by wire. I've done many four and five figure transactions without using escrow, but I really do recommend using a service like Epik if you are new to domain sales as they will handle everything.

Yes, I'm new Epik's 1.5% on transactions seems very reasonable. Anything else I should be watchful about?

 

[Kpett]

Whether the offer is legitimate or not will be revealed when you counter-offer. If you counter with $6K, be willing to accept $5K - still a very good return on your initial investment. Be sure to mention escrow (either Epik or escrow.com) as the service through which the transaction will be completed. Good luck and please report back what happens!

 

[gilescoley]

This is just me in this situation. Hawkeye and RJ have given you solid advice there.

With a first up offer of $4k, I would go back at 12K and see where it goes from there. They might pay that or at least you could negotiate down to around 7k/8k

Did the offer come via email? Do you know its from that company or are you guessing? Was it their business email?

 

[kashmiri]

Did the offer come via email? Do you know its from that company or are you guessing? Was it their business email?

It was a random email, not a company email. When asked, the person responded that they are just an "individual domain trader", although I am far from trusting this.

 

[gilescoley]

It was a random email, not a company email. When asked, the person responded that they are just an "individual domain trader", although I am far from trusting this.

Yeah, this is a totally different scenario. If this is a domainer, take the money and run. Research the email thoroughly, it can often lead to the correct person. People's email address are usually all over the internet.

 

[DomainTiger]

read read read https://www.namepros.com/threads/domain-industry-influencers-blogs-mega-list.1190592/#post-7771247

 

[frank-germany]

tell them you accept the UK 4000 Pound

 

[enterscope]

Counter for $10,000

 

[zigomon]

I got a same offer of $4k for my domain which was on an Auction site for no reserved price,buyer offer $4k directly where he can buy it for $100 even $1 if no other bidder.i accept the offer and buyer told me he will pay with Bitcoin i agree that too,and the buyer transfer me,on my account with i had to create,and finally when i withdraw i need to verify my account,need to make a deposit of 0.02Bitcoin.in all the process i have never transfer my domain name.and i cancel the transaction,probably an scam

 

[Sumeeth]

My suggestion is first do thorough research whether it is legit offer or not because we often see scam emails especially newbies received those type of emails. Also direct 4k$ offer for domain somewhat we need to think of(even they can start at 100$ offer)..

Thanks,
Sumeeth

 

[othellotech]

and finally when i withdraw i need to verify my account,need to make a deposit of 0.02Bitcoin

An advance-fee type scam - report them to your cyber crime police.

 

[RJ]

I got a same offer of $4k for my domain which was on an Auction site for no reserved price,buyer offer $4k directly where he can buy it for $100 even $1 if no other bidder.i accept the offer and buyer told me he will pay with Bitcoin i agree that too,and the buyer transfer me,on my account with i had to create,and finally when i withdraw i need to verify my account,need to make a deposit of 0.02Bitcoin.in all the process i have never transfer my domain name.and i cancel the transaction,probably an scam

Yep, another thing to watch out for. There are a handful of scammers that target domain sellers. Sometimes offers are too good to be true.

Any update @kashmiri ?