advice Received my first inbound offer, counter offer rejected

[Jay Ha]

I was about to put my phone away and get some sleep at around 3 AM when I received an e-mail from Undeveloped saying that I got a 200 USD offer on one of my 5-letter names. Knowing that I had a 199 USD minimum offer I thought that this guy is after a bargain.

I looked up the guy's name knowing that he resides in a specific country (from my google analytics and Undeveloped also shows me their location). I found his LinkedIn profile and I'm 100% sure it is him. He works at a multi billion dollar chemicals company, in their commercial development program. That company's domain name is a 3-letter .com which is worth several millions. Their pockets are pretty deep, that's all I can say about them (please don't throw guesses on public).

Anyway, here's the whole convo with his name hidden for their own privacy:

Now I know that I hit high on my counter offer. Several reasons include it was waaaay too late in my timezone, really didn't feel like selling a name for the amount he asked, and given that he works in a commercial program, I didn't really buy his story about the nickname thing.

Just wanted to share this experience since it was my first in ~5 months of domaining. Has any of you guys went through this situation before? How does it usually turn out? Any comments on how I handled this brief convo? Anyway, thanks for reading!

 

[Jay Ha]

The guy just messaged me that he asked his wife and she said 500 USD are OK. So the deal is done. Will report it in the Completed Sales thread once the money hits my account.

It was a great learning experience for me and I hope it was for other NPers too.

 

[hawkeye]

If may ask, why in the world would you think a 6 month old domain, with no meaning, and only other extension is xyz, would be worth $34,000?!?

This is the mentality of 'new domainer think', that all you have to do in this biz is get an inquiry, 'pick a nice high price' outta the sky, sell, rinse, repeat and the road to riches is as smooth sailing as the stories they've heard. ..good grief.

 

[JB Lions]

Probably should have took that one, $8 (what you paid) to $400 is ok. $34,000 is dreaming. Not a name I would consider "well pronounceable" either.

You can Buy it Now at GD for $589, not too far from that $400 you could have gotten from him.

 

[NYJimbo]

Totally get what you guys are saying. Kinda didn't feel like selling it because I wasn't convinced with the guy's reason behind his inquiry especially when I already knew it is a -very highly ranked- Fortune500 company. Thus the high counter offer.

Does the guy own the company or just work for it ? I've worked for billion dollar Wall Street companies, but it dont mean I got money.

 

[xeroox]

And after a week we will see the new domain under the fortune 500 new project

 

[Truespin Domains]

I saw a domain on sedo the other day I liked. One word .com that I wanted for a project.

I put in an offer of 500usd, thinking domain was probably worth about 1k.

Guy countered with about 1.5k.

Higher than I wanted, but realistic. I counter offered with 800 and he accepted.

If he'd countered my initial offer with xx,xxx I'd have cancelled the transaction and never looked back.

The domains about 12 years old, so if he's been the owner the whole time that's about 130usd cost. So still a profit of 770.

Laughably, there's a misspelling of the same domain on sedo too with an asking price of $15k.

Could he have gotten more? Probably, but it's still a good ROI.

I think the moral of the story is don't be greedy. Loads of domains with price tags of xx, xxx, but most of them are destined to expire with no interest.

 

[slader23]

Totally get what you guys are saying. Kinda didn't feel like selling it because I wasn't convinced with the guy's reason behind his inquiry especially when I already knew it is a -very highly ranked- Fortune500 company. Thus the high counter offer.

This is definitely a learning experience for me. Not mad I probably lost a sale though. I was eager for this kind of test to be honest.

It's a good lesson. I made similar mistakes a few times when I started domaining as well.

Think about it this way.

1. You invested $8 in hand registering the domain last year so it's not a previous long term hold.
2 There is no additional demand in the domain.
3.It is not related to any important trend or considered part of a valuable domain niche with a strong history of comparable domain sales.

So ROI is respectable at $400 or more because you'd be making 50X your initial investment. In the future little sales like this will be what keeps you moving and let's you buy more valuable names. These will compound and give you more cash flow to start buying investment class domains.

 

[BaileyUK]

You mentioned only one other obscure extension was registered

Well there's an easy check to see if it is indeed a fortune 500 company in 20 seconds after transfer and save waiting weeks. No fortune 500 or big business proposition is going to leave the .NET. ORG .INFO and possibly one or two other extensions sitting there to hand register If they are still available then trust me - It's his wifes nick name

 

[Niraj Kumar]

You took your chance don't regret. Wait for next offer.

 

[JudgeMind]

I agree that you shouldn't buy his story about it being his wifes name but I think your valuation is out to lunch, no hard feelings just my opinion. I have had similar cases where the buyer gives me some story that they are a student or its their wife or childs name, I never buy it. I think you could have gotten mid $x,xxx or perhaps higher and that's kind of pushing it for a not well pronounced name that has little seo value and is only 6 months old. The thing you need to think about is this might be the only inquiry or interest you get in the name for the next year or more. I guess you can ask whatever you want but if you want to be a seller and not just a buyer you need to price your names appropriately.

 

[Niraj Kumar]

I would have countered with $2400 with monthly payment of $400 up to 6 months. And would have stayed firm.

You can send reply like this if you are still willing to sell.

"Hello, I have thought on your offer it's too low from my expectation. Last price I can do for you is $2400 only because you are buying the domain to gift your wife. You can pay this in 6 installments of $400 each. Let me know.
Best Wishes"

 

[d-e-x]

Guys when was the last time you've countered with 100x the initial offer and it actually worked? It is clear I was acting as if this is the guy from that Fortune500 company. Shouldn't we all try our best to get the best possible price for our names? Anyway, now that I'm sure that he's not, I'm gonna be real this time and negotiate a deal that should be best for both of us. (yes, spoke with wifey and she made me send him our regards to his wife)

Will let you know how it goes.

Few min. ago
Waiting for the answer
Buyer is probably shocked right now

 

[MSN-Domains]

The guy just messaged me that he asked his wife and she said 500 USD are OK. So the deal is done. Will report it in the Completed Sales thread once the money hits my account.

It was a great learning experience for me and I hope it was for other NPers too.

Well done for turning it around. Makes 0 difference if the buyer is Marc Rich or a Begger on the streets, Domains are priced to sell not POA.

When you go into the supermarket they don't say "you earn under 30K" so let me so you our essentials range.

Sell volume, your results will be much better.

 

[BaileyUK]

Apple are using one of my domains (a $2,000 anonymous purchase by them) every day of the week, I don't lose any sleep over it. It just goes to show I'm on the right track when it comes to domains. I treat it as an acknowledgement.

And dare I say it was a fair market price. I love to see my domain contrivances up and running, Yep even when various TV adverts feel like they are calling my name

 

[BaileyUK]

I am happy with this 500 USD sale. I simply had this name for 2 months and already offered it for 70 USD on NP for a quick flip. 500 USD is good.
.

A nice revisit to the reality of this sale Jay Ha.

It's amazing how many domainers will tell you how a domain is worth $x,xxx + after a sale, yet those same domainers will tell you, You asked too much had the sale gone cold at a $x,xxx.

Listed at namepros for what $8 and you the only taker, relisted by you at $70 and No takers, Sold at $500 and now obviously worth at least $1,000+ in 'those hindsight eyes'

The buyer didn't have to give you any story in his approach to buy, however he chose to. Now some want to read into it a missed opportunity. not the cracking 2 month profit

For me, I love seeing my sales on Sedo or wherever. discuss the names on here - Never

 

[Jay Ha]

I got into domaining mainly to test/develop my branding and negotiation skills. This was my first ever inbound. Did my research and it turned out the person was genuine. I have multiple proof it is just a regular IT guy (from his full name, LinkedIn, IP, and address). I don't know about the wife part, he might use it to build an IT website given he's an IT engineer. I don't know what the plans are and I don't care tbh.

As long as it is not the Fortune500 company that I thought it was, then I did a good job in my opinion. The WHOIS records are under privacy but that F500 company do not have their main domain under privacy and I guess this.

I will probably lose a couple of hours of sleep if the sale went to a big company camouflaged by this person. I have due diligence reporting experience and that would be a shame if I let it go right past me.

Also for those saying I could have squeezed out some more money, you're right. I could have and I could have ruined the whole sale. For me, 500 USD is similar to a 1,000 USD so it is not a big difference to me.

I didn't get into domaining to go ahead and accept the first offer that comes to me for any name. I don't mind losing 3 or 4 digit sales if it means I am gonna learn (or earn) something later on. Gonna have to wait for the next inbound to test myself again.

 

[Windoms]

Congrats on the sale.
$500 or $5000, you're getting experience and building reflexes.
Soon you'll be a master.

 

[NYJimbo]

Wow, $34k, I hope you were drinking or something. If you price your domains like this you might never sell one.

The guy said $400, you might have talked him up to $600, but you lost him with the $34k stuff.

You might need to rethink your whole pricing on your portfolio. Offers dont come often and sometimes there is only one person who may ever want a domain.

 

[Jay Ha]

Wow, $34k, I hope you were drinking or something

I kinda was.

 

[Truespin Domains]

I am still in contact with the buyer, he said that around 400 is his limit. I countered with 500 which should include the 9% undeveloped commission. He should accept now I guess..

Hopefully, but personally I'd probably still walk because I would feel like you'd been trying to scam me. I know that wasn't your intention, but buying and selling is quite an emotional thing at times

Good luck though and I hope he accepts.

 

[Bob Hawkes]

Congrats @Jay Ha and thanks for taking us through the process with you. I feel there was a risk the 5 figure counter might have ended the discussion, but glad it worked out. I think the final price is a reasonable one for both buyer and seller. Hope this will be the first of many sales for you.

 

[frank-germany]

the domain name value has nothing to do with the capabilities of the buyer

nobody ever buys a domain for a fortune 500 company
everybody wants it for the school project of the little daughter

asking 34K was a little high but the right idea

 

[55Domains]

I dont see why domainers always wanna take everything they can get and leave nothing on the table... when they miss tons of prpfitable deals like this it becomes an unprofitable practice...

Neither should the price be determined by who you are dealing with except if you are lowering it for someone.. or maybe differantiate between domainer and end user (of course).. but i just dont think a start up should be asked to pay 5k and a billion dollar company should be asked to pay 50k.. should be the same 5k or 50k from the get go for every inquiry.

 

[xynames]

There are times when I’ve received anonymous price requests for domains that would, in a vacuum, perhaps be worth 2000-3000, and then upon doing my research reasoned that the inquirer must be a specific buyer, such as a large corporation. In such cases I’ve gone ahead and tripled the asking price.

But there’s more to my rationale for upping the price than that the domain “must” be intended for a certain company. In order to justify in my mind the higher asking price I’ve also had to determine that probably no other domain would work for this buyer.

In one such situation I even increased the price all the way to low to mid five figures; more than tripled what the domain might be worth.

I’ve now done this more than several times and in all but one instance (on a mid four figure price I quoted) it has worked out well for me.

So my increasing the price is not entirely based on the buyer but on additionally determining that the domain name must be intended for a specific use by the buyer - a specific need that might not be able to be filled as well by any other domain. My research in each of these cases has unearthed that specific need.

Otherwise - you’re just following the inane logic of trying to charge the guy who is wearing a Rolex more than the other guy. Even if your buyer was wealthy why would you think he’d pay more than market unless he really needed the domain and no other would suit his purpose? You were missing the key part to the puzzle here - fitness for a particular purpose - i.e. - need. You had no idea what for or if this buyer (and by buyer I mean - the corporation you thought was the buyer) needed your domain.