advice Selling strategy

[zac3366]

We were recently contacted by someone from Ename ("The #1 domain name marketplace in China"), asking for a client if we would like to sell a domain. At first the client's budget was $5,000. Now, after a few days and with no hard negotiations, their budget has gone up to $30,000. Me and my partners feel this domain name could be worth a lot more for the right buyer. We don't know who the buyer is, but one of the largest online companies in China has a brand/product that matches the .com domain name.

We think this might a real opportunity for us that we would like to explore. We don't have much experience when it comes to selling domains. The question is, what to we do next?

1. Ask who the buyer is to be able to negotiate better?
2. Set a high fixed price and see what they say?
3. Start an auction and contact the companies we think might be interested in the domain name?
4. Hire someone professional to negotiate the sale for us?
5. Something else?

Any advice is welcome

 

[Kyle Tully]

Would it be considered unprofessional to start an online auction where I invite the current buyer and others that I think might be interested? And would it be fruitful?

Chances are you'll only have this single retail buyer bidding.

As you said, you've only received a single offer each year. What are the odds that suddenly a bunch of serious buyers are going to appear with more than $30k to throw around?

I would simply go back to them with your asking price and negotiate (or not) from there.

 

[topdom]

I was offered 5K , and then 40K+, by different people (and with time gap about 1-2 years, hold time over a decade), I accepted the second one.
My top sale happened this way. It was almost clear I wouldn't get a much higher price.
Every situation is different. There may be TM issues. I had a cctld I kept for more than a decade which I sold for 10K although it could get 1M (logically), but 10k sale was painful enough and I let it go. I'm paranoid about agents, but endusers don't deal with sellers directly, strangely. Can buyers prefer to pay more sometimes, because the person who handles the sale would get more money out of it, I think this is not impossible either. Can their lawyers offer 100 or UDRP, although their company would be willing to 100K: very possible. Sometimes, wording/mood of the response makes big difference, I suspect. You may need to stay cool, although you may feel warm.

 

[Jim H]

Congratulations, but I think Chinese buyers must have set a ceiling. If price exceed , they will give up. I hope you will seriously consider it. I have deal with them many times.
To be honest, I may have guessed your buyer , Lol.

 

[AEProgram]

If you don't have experience with Chinese buyers hire an expert that does. In almost all cases people mess these sales up. There is a 95% possibility you already lost the sale by waiting.

Time is critical right now. Chinese buyers have incredible power to walk away and never think about a product again if they feel things are not going smooth. I hope you can still save the sale by stopping all games and responding with a clear buy it now price that has a deadline. Deadlines in Chinese culture is not a pressure technique, it is respected.

 

[LoveCatchyDomains]

Another consideration, along with the above suggestions, would be to check the NameWorth valuation. Their retail value estimations might tend to be overly optimistic. However, if the 30K is their retail price estimate, that might give another thought to seriously considering that valuation.
Granted, that doesn't mean that you couldn't potentially get more, but it would perhaps give you a better sense of what might be fair.

 

[gilescoley]

I would be sceptical if the offer goes from $5k to $30k without any negotiations. Sounds like a fake offer to me. I hope it isn't for your sake.

Good luck, hope it works out

 

[dib]

Hire someone professional to negotiate the sale for you

 

[UncleBrand]

ename brokers are reliable,
i had good experience with them with the names i sold there
i remember being nervous in the first deal closed at ename,
but everything worked just fine in a few days i received the cash

 

[zac3366]

ename brokers are reliable,
i had good experience with them with the names i sold there
i remember being nervous in the first deal closed at ename,
but everything worked just fine in a few days i received the cash

Sounds good. Did you use an Escrow service?

 

[UncleBrand]

Sounds good. Did you use an Escrow service?

No
they contacted me representing a client

the Domains/money was transfered using ename escrow service

 

[zac3366]

No
they contacted me representing a client

the Domains/money was transfered using ename escrow service

Ok, did you pay a fee to ename or did the buyer do that?

 

[frank-germany]

Would it be considered unprofessional to start an online auction where I invite the current buyer and others that I think might be interested? And would it be fruitful?

highly recommend not to auction
as you have only 1 buyer for now

 

[frank-germany]

1. Ask who the buyer is to be able to negotiate better?
2. 

they won't tell you anyway

1. Hire someone professional to negotiate the sale for us?

why? you can do it yourself



look they want the name.
that's cool

now you need a price
one you decide

tell them and stick with it.

that's all.

 

[zac3366]

they won't tell you anyway

1. Hire someone professional to negotiate the sale for us?

why? you can do it yourself



look they want the name.
that's cool

now you need a price
one you decide

tell them and stick with it.

that's all.

You make it sound so easy Thanks for your input!

 

[LoveCatchyDomains]

ename brokers are reliable,
i had good experience with them with the names i sold there
i remember being nervous in the first deal closed at ename,
but everything worked just fine in a few days i received the cash

Did they seem to be straightforward up front about the top price offered, or were you able to get much higher prices with further negotiation?

 

[UncleBrand]

Did they seem to be straightforward up front about the top price offered, or were you able to get much higher prices with further negotiation?

i was always able to increase from the initial offer
but each domain is a different case, some domains were a dying trend, so i was happy with low 4 figures

my experience is to always negotiate with Chinese and middle east buyers, because they could disappear if you accept their initial offer

 

[UncleBrand]

Ok, did you pay a fee to ename or did the buyer do that?

the full agreed amount was deposited into my ename account,
withdraw fees depend on the method you choose(paypal/bank), make sure to choose the cheapest option for you
the fees depend on the country you reside

 

[stevo]

If you don't have experience with Chinese buyers hire an expert that does. In almost all cases people mess these sales up. There is a 95% possibility you already lost the sale by waiting.

Time is critical right now. Chinese buyers have incredible power to walk away and never think about a product again if they feel things are not going smooth. I hope you can still save the sale by stopping all games and responding with a clear buy it now price that has a deadline. Deadlines in Chinese culture is not a pressure technique, it is respected.

Who might be a resource for domain name dealings with Chinese buyers?

 

[zac3366]

Who might be a resource for domain name dealings with Chinese buyers?

There are domain name brokers. I’ve talked to one that could help me. They seem very professional, but they want 10-20%. Another 7.5% to the Escrow service they use.

 

[LoveCatchyDomains]

There are domain name brokers. I’ve talked to one that could help me. They seem very professional, but they want 10-20%. Another 7.5% to the Escrow service they use

Since commissions for brokered sales generally seem to be 20-30%, sound like they are in the right ballpark?