discuss Turned Down A $75K Offer

[Silentptnr]

I read that Elliot Silver turned down a $75,000 offer for lilac.com.

Would you? I probably would have accepted for that domain.

Source: https://twitter.com/i/redirect?url=...4a19f7c1ecff&uid=3320893603&nid=244+272699409

 

[maxtorz]

75k is a not that much when you think he has to pay SEDO(the broker) and taxes at the end of the year...
Look at it this way...domains are tax deductible business expense in the US, so really the BUYER pays 1/2 price in the end, not 75K!
My counter would be $100,000 NET price(after fees/taxes) for Liliac.com and that would be my cheap end of the year ACT NOW kind of price.

 

[wwwweb]

75k is a not that much when you think he has to pay SEDO(the broker) and taxes at the end of the year...
Look at it this way...domains are tax deductible business expense in the US, so really the BUYER pays 1/2 price in the end, not 75K!
My counter would be $100,000 NET price(after fees/taxes) for Liliac.com and that would be my cheap end of the year ACT NOW kind of price.

Likely talks have been going on for a while, and usually companies watch a domain for a bit before making an offer that size, it’s not done lightly. Buyers don’t care about net, or your tax situation, they want an X price, and maybe what you stated is the reason the deal didn’t happen, as once factored in, it wasn’t as lucrative for him.

Maybe he knows about Cyger’s Tulip.com sale, no price is known, but the buyers were well funded.

 

[DN_Hunter]

As others have mentioned -- we don't know what other offers he has received for this name over the years. Perhaps based on other offers he feels it's a no brainer that he could get at leat that much with the potential to get 6 figures.

For instance, maybe in his mind he feels that if he were to put up a BIN Price of $75K on the lander page, that the domain name would sell for that price -- so there's no risk/loss in trying to hold out for more.

Put it this way -- assume we never saw this thread -- what would you do if you were just typing in names and came upon the landing page for this Domain Name and the Buy-it-Now price was set at $75K? I don't have enough to buy it, but I'm pretty sure if I was asked to guess how long it would take to sell I would say less than a year for $75K.

 

[mad409]

I'd take 75K.

 

[Name Trader]

I can see a scenario where he would refuse the $75k. If developed into a brand, it would be cheap at $75k. But for me. I would have accepted the money. Because it would have paid for the house I want to build but cannot because of the shortage of funds.

 

[urlurl]

Maybe I'd turn it down. Depends on who I think/know the buyer is.

One thing I wouldn't be doing though, is bragging about turning down the offer publicly.

i would suspect he is doing it to get the original buyers to up their offer or maybe get the attention of another buyer... hmmm?!?!

 

[Domainscoop.com]

he is the owner he can do whatever he likes sell for 1 million or sell for 1 buck.

could of , should of posts are good for humor only

 

[Silentptnr]

Maybe they wanted financing so he wanted alot more in that case? Id want more if it involved financing.

 

[Silentptnr]

he is the owner he can do whatever he likes sell for 1 million or sell for 1 buck.

could of , should of posts are good for humor only

True but its a good case study on high end negotiations.

 

[Domainscoop.com]

True but its a good case study on high end negotiations.

Actually, because you created a thread and Elliot may have wanted more to sell it, and now all these people are posting "I WOULD have sold, i would have sold it", may be buyer stumble upon this, and even back off from their 75k offer now.

Anyhow, thats just my 2 cents. But I can see why its good case study, but case studies should not be used in a way that other people may end up losing money in this case Elliot.

 

[Brandworthy]

Here's my thinking. If a person or company has a 75k budget, they have a lot of choices.

The opposite of that can also be true - big corporations with large budgets are often driven by marketing rather than domain availability. Some campaigns can have millions to 100s of millions in USD for budgets, and the cost of acquiring the exact-match domain can be insignificant. Imagine a corp like P&G launching a new FMCG line called "Lilac". I'm just making this up of course, but at enterprise level domain availability can often be a far lower consideration than other factors, and paying for a domain can be far cheaper than having to re-brand a project.

FWIW I think he will be rewarded by holding out for a higher price.

 

[Amzymayor]

I'll take it and run to my village to build a mighty house. Lol

 

[ksusha64]

I think most people are missing the point. I think I would of rejected it as well. They will contact you later directly at least with 75K so u do not pay 20% commission and I am sure they will at least pay 85K, so u get 85K instead of 60K after commission. They also may go crazy and offer like 150K for it. The only bad thing about it they may go with another name, in that case u can show to others you already rejected 75K and certainly get that or more. Good job Elliot!!!

 

[elevator]

Well I have Lilac.info and they can have that for way less..lol.. He should have taken that deal..

Sorry, they are not same !

 

[-EM-]

Never take the first offer.

Don't know how much he paid for it. Don't know how many other offers he's had on it. Don't know his financial situation etc.

Trying to find other color/plant type names

magenta.com - $100,000
amber.com - $180,000 also a name

Those types of names can be branded into whatever.

If that was the actual first offer, the $75,000, might be able to move them up some, to low 6 figures.

English is not my native language, but I had to search for the meaning of this word and I bet lot's of people did. I can not compare the two colors you mentioned with lilac. They are in different leagues, it's like comparing magenta with pink or red or blue.Now comparing those sales with the $75k offer, it is pretty clear (in rational thinking) the offer was a little too much.

Now, when I see this kind of posts I always say to my self, "big" people are always looking for "big" attention. And this is a perfect case!

 

[-EM-]

I know one thing. If he accepted the 75k. Sure enough a larger offer would come in right after the sale. Happens to me all the time.

That is the strangest thing that happens to me too. I get relative good offer for a domain which had no interest for over a year and after the sale is finished, comes an other offer out of no where much higher lol

 

[nothere]

My counter would be $100,000 NET price(after fees/taxes) for Liliac.com and that would be my cheap end of the year ACT NOW kind of price.

You could counter with even with a $trillion, doesn't matter. What the buyer pays you matters

He must have his reasons, no doubt they went back and forth to end with a $75K bid. Lilac is a very good name but also he may need to wait years for another offer, as it's very specific. If it was shoes.com, well, thousands sell shoes so they'll buy it.

 

[Silentptnr]

To me its more a brandable dictionery word as opposed to a common word.

As mentioned it all comes down to buyer and seller agreeing. Too bad 75k wasnt enough. I dont consider it a lowball offer.

 

[domainer111]

It's a great domain, it's worth holding out for more on imo.

 

[Rammbo]

Sorry, they are not same !

Lol

 

[Iam_leun]

As a newbie i would have posted it here on NP with this caption;
Sold my first domain for $75k

 

[maxjohan]

Years ago this could have been a $300k name. I don't know the market well enough now days. But at least $150k?

 

[Smiles76]

10 years from now, he'll still be holding that name hoping for a bigger offer than will never come.

 

[Smiles76]

I can see a scenario where he would refuse the $75k. If developed into a brand, it would be cheap at $75k. But for me. I would have accepted the money. Because it would have paid for the house I want to build but cannot because of the shortage of funds.

I love how domainers think it's easy to develop a brand. It takes FAR more than a domain name to develop a brand.

 

[Haroon Basha]

LILAC.COM
EstiBot Value: $ 51,000 USD
Godaddy: Estimated Value: $16,595