Valuation, Offers & Indecision - Dealmaking & Breaking

Labeled as question in Domain Beginners, started by Enwych, Apr 14, 2016


  1. Enwych

    Enwych Established Member

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    The following is not a huge dilemma as far as what's at stake, but I sense that I'll be facing the same indecision and second-thoughts whenever it comes time to make a deal on selling a domain. I'd like to find out how others come to the decision to accept an offer, hold out or walk away. What makes you say 'yes' or 'no' to an offer?

    I have a domain for sale at ebay. It's worth maybe $100. at Flippa or GoDaddy using NameBio sales for the past month. (OK, OK it's 77ur). I listed it for $59. BIN at ebay. I listed it right after I hand registered it from the expired domains list. Someone offered $10. and I countered with $35. stating that's as low as I could go & $10. just covered the registration for a year. He countered with $25. Now I'm pretty sure $35. is a good deal on the name.

    Here is my thinking - 77tv sold for $1050. at Flippa on March 21. but I think that was an outlier, other sales are in the $175. range, but they don't have a vowel. Still, double numbers haven't been available on expired domains for 2 weeks - so $69 if you want to pick one up at the drop. 77 means perfection and followed by "ur" the name has the potential to be an outlier also. The basic valuation struggle.

    Now I need to respond to the $25. offer. I see my options as:
    1. just decline. I already gave him my lowest.
    2. accept because $25. is money. But, the offeror buys on ebay and made another (lowball) offer on another of my names there (which I also turned down) and if I give in when I said $35 was my lowest, then it will set a precedent. But, it's only a $10. difference and it's money.
    3. End the listing and auction it at GoDaddy or Flippa.

    If I do this with every name, I'm not going to make it. What do you do? How do you get past the indecision and decide when to call it a deal or walk away?

    I apologize for the length and thank you in advance for your guidance.
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  2. alinask

    alinask Established Member ★★★★★★★★★★

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    If I do this with every name, I'm not going to make it. What do you do?
    My response might sound a bit dumb, but, if you're not gonna make it anyway, stop it. Develop a strategy that works for you.

    For example, instead of the thinking of "just making a profit" selling it at $35 instead of making a profit selling it at $25, I would think like this: for any domain I acquire under $50, I will sell it for $25 (minimum) profit each single time. No less. No low ball offers I consider selling it (saves time and energy).

    For any domain I acquire over $100, I consider selling it for no less than $200 (where $200 is double of initial investment) and so on. So you have some rules you are guiding on.
    Adapt in time, but start with the rules.

    How do you get past the indecision and decide when to call it a deal or walk away?
    The previous rules I talked about. You follow them strictly, and adapt them in time. Create your personal way of making a profit from selling domains.
  3. TravisS

    TravisS The Duke of York

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    The majority of flippa sales are outliers to the equation lol. 99% of names don't belong near an auction. Everyone has a different definition of profit, but with the margins your talking, there isn't going to be ~any. Ask the buyer if he has a namepros account and go directly through paypal to save on the fees. If their a buyer on ebay, they likely already have one or their in need of one for education sake lol. Obviously their are some ethics/rules

    Personally, I don't think any domain is worth selling for that low unless its bulk, a name that's bound to be deleted, or helping the buyer Avoid the dilemma by pricing your names w/ a minimum offer and/or not doing "best offer" on a site like ebay. Whether it's domains, electronics, etc., etc., if a buyer wants it enough they'll message you with an offer and it'll stand to be better when you come off as more stubborn on the price. There might be a point in time where you'll start to value your time more than the $ profits or lack there of.

    $35 is a good price on ~ANY domain. Your doing the buyer a service by entertaining his offer, not to mention proceeding on the rest if you accept. The buyer demo on ebay is going to be scraping the barrel. Price your names higher to avoid the noise and consequential dilemma. If it's a name you/the owner thinks is worth ~$100 tops, putting it on any auction (godaddy, flippa, etc.,) is a bad idea. You'd be better off taking the offer via ebay profit-wise.
  4. inforg

    inforg Established Member

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    At 25 dollars, once you subtract your cost, eBay fees, PayPal fees, etc. what are you left with? $10?

    You already have over an hour invested in the name. You might as well go get a real job or second job for that. Every name you acquire is not going to sell, so you also have to make up for that on the sales you do make.

    There is a time to just dump extra inventory for whatever it brings (when you plan to drop it or have to pay some renewals) , but your normal business model needs to provide a higher return.

    I would never buy/register a name that I didn't think had the potential for a mid XXX sale or more, unless it is a bulk buy where you can quickly make XXX on the lot.

    Sit down and do some analysis of the numbers. If you register 100 names at $10 each, how many do you have to sell and at what price to make enough money for it to be worthwhile to you? Add up all the time and costs and renewals.

    If you hold it for a while, will you probably still get $25 later? Then why not start high and lower the price as you get closer and closer to renewal?
  5. Enwych

    Enwych Established Member

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    Thank you so much @alinask, @TravisS, & @inforg. You've each made some really good points and suggestions that make a lot of sense. You have been incredibly helpful.
  6. Recons.Com

    Recons.Com Top Contributor VIP

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    You can't use Namebio for those kind of names, as most of them are not picked up even at $14 (renewal + 5$ closeout) and NB lists only $100+ sales.

    If you don't sell, you might end up holding it for years though. It is best even not waste time with the names that you are planning to sell in $xx, unless it is a liquidation sale to prune your holdings. Then selling even at $5 is fine.

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