Situation Room: The Quick Flip

[Spade]

Alright. So I acquired a domain name at auction within the last 2 weeks. It is 7 years old, very little traffic (couple uniques per day). Its a great brandable domain name. Many of the other TLD's are registered and the .net is a developed site.

When I purchased it, my primary intention was for future development, as I liked the idea of what I could do with the domain. After the domain was physically acquired, I recieved an email from the .net owner asking to buy it.

Great! I hadnt expected to flip this one, so of course I figured this is promising. After some back and fourth, he says $400 is my best offer. Well, I acquired it for just over $100. So, do I flip a domain and see an ROI of 400%? I personally felt the domain name was substantially better than that. I told him I wouldnt part with it for less than $750.

Im not hurting for money, I buy quite a few domains per month, I still have the desire to eventually build a site, but the truth of the matter is, when will I ever? I just dont know.

If you have an offer, where you'll make some money but you are considering development (even knowing it may never happen). What would you do?

 

[matt_bodis]

Probably take the cash, but you should negotiate to $600 or around there. Make it worth your while.

Development can be done with a $7 domain.

 

[Spade]

Probably take the cash, but you should negotiate to $600 or around there. Make it worth your while.

Development can be done with a $7 domain.

The buyer will not budge over $400 saying even at that price it is too much. Lets assume the sales price will be $400.

 

[networkmsia]

hmmm... 400 is a good deal there. but a 7 years old domain is usually worth more.

Since there is not much traffic anyway, I will take the cash.

 

[GiddyUp]

if you're not hurting for cash and have your heart set on development, be firm around $600.

Even for $400, that is a great flip. But obviously the ball is in your court since this person owns the .net and has already made you an offer. What type of website is the .net? Do you see it having a high value?

Either way, the name is worth more to him than you. Like cfguru said, development can be made off a $7 name.

IMO, try for more, but take the sale @ $400 if it comes to it

 

[TheBulldog]

Depends on the name.....

Basically I figure up what I think it is worth or what I want for it. If a buyer hits 75% of that, I probably would take it unless I really love the name.

 

[NameClerk]

The prospect already owns the developed .net so this isn't a decision you have to rush into. Their $400 offer will probably be good 1 week, 1 month or maybe even 1 year from now. You have the advantage here because you have the ONE AND ONLY name they want. There are no other options for them.

Be firm in your stance and avoid seeming anxious. Make them wait. The prospect is the one in the dark as they have no way of knowing what your plans are. As time passes, they will be the ones who become more anxious and will likely raise their offer. If not, you still have a good name that you bought to develop in the first place.

JMHO.

-Bill

 

[Spade]

The prospect already owns the developed .net so this isn't a decision you have to rush into. Their $400 offer will probably be good 1 week, 1 month or maybe even 1 year from now. You have the advantage here because you have the ONE AND ONLY name they want. There are no other options for them.

Be firm in your stance and avoid seeming anxious. Make them wait. The prospect is the one in the dark as they have no way of knowing what your plans are. As time passes, they will be the ones who become more anxious and will likely raise their offer. If not, you still have a good name that you bought to develop in the first place.

JMHO.

-Bill

Agreed. I supposed the issue is about the value that I percieve vs the offer vs potential for development. I agree, anyone can develop a domain name, even it its regged. But this one is perfect for the concept. I am more curious to hear what people would do in this given situation!

Justin

 

[greggish]

He contacted you. He has the .net. He wants the domain. If he'll pay $400 he'll pay $750. Don't budge off of the $750 asking price. Let him play his game and walk away. He'll be back agreeing to $750. JMHO.

 

[Spade]

He contacted you. He has the .net. He wants the domain. If he'll pay $400 he'll pay $750. Don't budge off of the $750 asking price. Let him play his game and walk away. He'll be back agreeing to $750. JMHO.

Thanks Greggish, Im leaning towards doing this as well. (same logic)

 

[gazzip]

The prospect already owns the developed .net so this isn't a decision you have to rush into. Their $400 offer will probably be good 1 week, 1 month or maybe even 1 year from now. You have the advantage here because you have the ONE AND ONLY name they want. There are no other options for them.

Be firm in your stance and avoid seeming anxious. Make them wait. The prospect is the one in the dark as they have no way of knowing what your plans are. As time passes, they will be the ones who become more anxious and will likely raise their offer. If not, you still have a good name that you bought to develop in the first place.

JMHO.

-Bill

I agree with all the above - especially if you feel the name is pefect for a future project.

.

 

[Spade]

I agree with all the above - especially if you feel the name is pefect for a future project.

.

BTW Gazzip - I like your new Avatar.

 

[gazzip]

BTW Gazzip - I like your new Avatar.

Me too, shhh I did'nt make that one ...I can't remember where it came from...I have so many bits of graphics on my PC, its like Aladins Cave lol

Happy new one too !


.

 

[000]

If I were in your position, not hurting for money, I would hold out for more than $400. As has been said, the owner of the .net has more need for the domain that you do, and I'm sure that they'll be able to come up with $750 if they truly want your domain.

Good luck!

 

[Spade]

Thanks Egnited.... I think I will most likely hold on my ground.

 

[Kate]

You should post the name so we could give you a tentative appraisal.
The problem with brandable domains is that you need the right end user, the one that will be bought on that particular domain. It could take time and you may not get offers often.
You have to weigh your development prospects and the long-term potential of the name vs some quick cash.
$400 is not a lot of money but it's a comfortable profit that can be reinvested into more drops :blink:

 

[Ronald Regging]

I think it depends on the buyer and the type of site he runs. I guess if it's obvious he's making money then $750 isn't a bad price. But not all situations are the same. Sometimes you get an interested buyer who just doesn't have the money. Not everyone has $750 to throw at a domain. Just because someone seems like a perfect end-user on the surface, doesn't mean they can live upto those expectations financially

Put the domain into perspective. Is it something you see having a serious value above $400 on it's own? Or is you're perceived value skewed by your own ideas for development? Sometimes these work hand-in-hand, development potential can definitely add to the value, but is this a domain that would have a wide development appeal, or just for a select few, such as yourself and the owner of the .net?

Personally I'd probably flip it so I could reinvest that money in other domains and hope the compounded profits outweigh the alternative. I'd probably try to get him at an even $500 at least though. It's really hard to say without knowing the domain.

 

[Spade]

Alright, although I was asking for a situational perspective, I suppose it does vary based on the domain. The domain name in question is Tricktionary<dot>com.

 

[mis_chiff]

:lol: I thought it was SituationRoom.com :red:
Disregard pm then ... :D

 

[Ronald Regging]

personally i'd try to squeeze $500 but sell.