Some advice please

[todd767]

Hi, I was hoping some more experienced domainers could give me advice with regards to a query I've received regarding one of my domains.

The domain is the social welfare area (and therefore not likely to attract a lot of commercial end user interest - at least not anything that would generate a big sale).

Anyway I received an email late last week and the guy explained in great detail what he planned to use the domain to make a non profit site. He made it pretty clear that he was hoping to get it very cheaply, if not for free.

The obvious options I can see are to either wait and hope for a better offer or try to sell to this guy for what I paid originally, or a very small profit.

Obviously I'd love to make a profit but I am not sure this guy would be willing to part with much money. If I decided to wait for another offer it could be a long wait, and possibly not very lucrative.

Any advice would be greatly appreciated.

Thanks

 

[Ms Domainer]

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There are two school of thoughts on situations like this.

Some domainers have built empires selling lots of low-cost domains as a business model, flipping reg fee domains for $50 - 100 and then working up the food chain by re-investing in quality domains. If you think you could do that, then go for it, but just make sure you're not selling your domain short. Posting your domain in the appraisal section might be helpful; you don't want to get ripped off by a lowballer. Large companies sometimes pose as the "poor" end user (college student, charity organization, etc.), so you have to be careful.

Other domainers wait for the big payday, but, then, you have to have the goods to back it up. Domains are essentially worth what someone is willing to pay for it, unless it's something like Loans [dot] com, so worth isn't always clear.

In either case, an appraisal in the appraisal section might give you a ball park figure. Also, if you haven't done so, do a search to see if your domain has sold in the aftermarket in the past. You'd be surprised at how many times people pay $X,XXX for a domain, only to drop it a few years later.

Good luck!

*

 

[hawkeye]

It kinda boils down to what you want to make on it. How long have you had it? How much do you have into it? What is the overall potential for another sale down the line? It's really not important per se how much this guy is 'willing' to part with, but how much he 'will' part with if he does want it! Not saying 'gouge him for as much as possible', but everyone knows that things 'one wants' - 'cost'! Even Non Profits! (They pay electric/rent etc. just like everyone else. ) Only you can decide how much you want to make, and how long you may have to keep the name to make that profit. Then decide what is a fair profit for you as an investor on this name, be it tens, hundreds, thousands, and go from there. But, do keep one thing in mind... "DON'T get sucked into the 'Non Profit and we can't (don't want to) pay much' crap. Sure, there are NPs that may be shoe string budget operations, but Non Profit does not mean 'no money'!! They have money in their budgets to get the things they need to run their operations. They have a lot more money than you realize, they just like to play off the sympathy verbiage of 'we're a non-profit' to get things cheaper. If they want it, they'll pay a 'fair price to all', for it. (You may be surprised!) GL.

 

[DU]

I would send an email as follows:

I would like to sell this name to you for a fair price where we can both be happy.
Here's my offer to you.

Take the number that is legitimately the highest number you would pay AND still feel like you got a decent deal.
Now take that number and remove 10%.

Tell me what that number is and I decide immediately yes or no with no further discussion.

Then I would either send a note saying yes or no.

 

[verbster]

DU's suggestion is a good one.

 

[todd767]

Thanks for all the wonderful suggestions people. I did put the name in the appraisal section and the response was basically that I shouldn't expect to make much of a profit. Interestingly though I only bought the domain a month ago (or less).

 

[nicenic]

*

There are two school of thoughts on situations like this.

Some domainers have built empires selling lots of low-cost domains as a business model, flipping reg fee domains for $50 - 100 and then working up the food chain by re-investing in quality domains. If you think you could do that, then go for it, but just make sure you're not selling your domain short. Posting your domain in the appraisal section might be helpful; you don't want to get ripped off by a lowballer. Large companies sometimes pose as the "poor" end user (college student, charity organization, etc.), so you have to be careful.

Other domainers wait for the big payday, but, then, you have to have the goods to back it up. Domains are essentially worth what someone is willing to pay for it, unless it's something like Loans [dot] com, so worth isn't always clear.

In either case, an appraisal in the appraisal section might give you a ball park figure. Also, if you haven't done so, do a search to see if your domain has sold in the aftermarket in the past. You'd be surprised at how many times people pay $X,XXX for a domain, only to drop it a few years later.

Good luck!

*

Welcome said, Ms Domainer! :gn:

 

[todd767]

A quick update after putting the 'give me your best offer minus 10% message' I sent. He has continued with the story that he is nearly bankrupt but has offered the price I paid plus 10% so I get some kind of profit. However he has said it will take a while for him to get the money together and wants a guarantee I won't sell to anyone else in the meantime (up to 12 months).

I've done some research and two things seem weird: 1) Two domains he owns or has owned were registered in his wife's name (I assume she is his wife). And this is a guy who designs websites! 2) If you have $200 to your name why would you be interested in a project that won't make you any money??

 

[Ms Domainer]

A quick update after putting the 'give me your best offer minus 10% message' I sent. He has continued with the story that he is nearly bankrupt but has offered the price I paid plus 10% so I get some kind of profit. However he has said it will take a while for him to get the money together and wants a guarantee I won't sell to anyone else in the meantime (up to 12 months).

I've done some research and two things seem weird: 1) Two domains he owns or has owned were registered in his wife's name (I assume she is his wife). And this is a guy who designs websites! 2) If you have $200 to your name why would you be interested in a project that won't make you any money??

*

At this point, I would probably cut off negotiations by letting him know that this is not acceptable (you should probably state it nicer and better than I just did because you never know).

Not only is he low-balling you, he's asking you to hold the domain for up to 12 months because he doesn't have the money.

Really?

That's crazy-town!

Note: the registrant of "his" domains could be his mother.

:lol:

*

 

[urlurl]

the whole thing seems fishy. I would not guarantee the name or the price and I would assume he is full of bull sheet. Set your price and a deadline, and don't waste any more time.

I had a buyer - back and forth for 3 days on the price. we finally agreed on a price. the next day he wanted it $100 less (for no reason) I told him to f-off and blocked him from emailing me. sometimes its not worth the aggravation.

 

[alien51]

but has offered the price I paid plus 10% so I get some kind of profit. However he has said it will take a while for him to get the money together and wants a guarantee I won't sell to anyone else in the meantime (up to 12 months).

With the highlight above, it looks like this is a guy who believes you have ZERO chance of ever getting an offer for your domain in the next 12 months that is much better than reg fee.

He is saying your domain is so lousy, that he is betting he's going to be your only buyer.... ever.

Seriously, what he is saying can be true. LOL. But then again, i probably would get offended with a buyer trying to hold me hostage unsolicited.

One of the lousiest domains in my own portfolio, have earned me reg fee profits using Adsense in a year on random clicks. You could earn that $10 bucks in a year. It is pointless to be engaged in negotiations about a reg fee sale.

He only has reg fee money to buy. So he needs to buy with no conditions, or just walk away.

 

[PNW]

The time you spent discussing this and the time spent communicating with him should be factored into the price. You'll still have time spent closing the deal as well. How much do you want to make per hour?

The other thing to consider, is if the guys skills are good then maybe you could barter with him. Maybe he has something else he's willing to barter.

 

[Name Trader]

I'd simply tell him to stop wasting my time and f.o. I wouldn't sell him the domain on principle.

 

[todd767]

The other thing to consider, is if the guys skills are good then maybe you could barter with him. Maybe he has something else he's willing to barter.

I have thought a little about this but I'm not entirely sure he has anything that would benefit me. Although the fact remains that he badly wants the domain so that gives me a lot of leverage.

Thanks to everyone for your advice.

 

[alien51]

Maybe he has something else he's willing to barter.

What else would you want to barter with him, other than money?

---------- Post added at 07:15 PM ---------- Previous post was at 07:13 PM ----------

Although the fact remains that he badly wants the domain so that gives me a lot of leverage.

You can use this as a practice ground, to prepare yourself for high ticket transactions you may encounter in the future.

 

[urlurl]

if he's broke - lease it to him - you keep the name and for a few bucks you can forward it to his not for profit site (cough... B-Sh1t)

$20 month (or 3 backs or cig's)

 

[RaiderGirl]

Is it just a coincidence that so many end users want to build a non profit site?. If it's not a non-profit, it's a struggling artist or a charity for young kids... I bought into that CON once and I promised myself I would never do it again...

Before you consider donating a piece of your inventory that your going to lose money on or break even, know that your in this business to make a profit, not give your profits away.... Now if you live comfortably and can afford to take the loss then by all means donate the domain IF its a charity you approve of..

BUT before doing that or even engaging in the discussion, CONFIRM the charity or cause.. Otherwise, your going to feel like a complete fool when you find out he pulled one over on you.

 

[fm1234]

Does the charity resonate with you at all? You could always keep the domain in your own registrar account, set the nameservers to the charity's website, and if it gets traction you have both the goodwill of having supported something that matters (however much) to you, plus you keep the name.

Additionally, there could be some self-promotion possible. Most companies aren't supporting charities because they love giving away money; it's a form of advertising that gets them tax benefits and brand recognition. If this guy really seems to have some direction for whatever the underlying cause is, then the traffic to and recognition of the domain can work for you in terms of what you can get in the way of a positive link/mention/etc. on the site -- all while retaining ownership and control of the domain.


Frank

 

[alien51]

Aren't there any .ORGs available for that domain?? Why is he hell bent in getting it, if he is bankrupt ?

Can't he handreg a variation of your domain? It's like a homeless man getting too picky with food. If you don't have money, you don't choose. And if you are a fancy restaurant, i don't know why you would want to put up with a hobo so he can eat in your resto and pay you loose change.

All these do not make any logical sense.

 

[PNW]

What else would you want to barter with him, other than money?

It could be anything of value to you, a loved one/friend or even something you can resell to someone else.

You can do very well bartering.