DAN.com

What Minimum Offer Would You Set For A $20,000 Domain Name?

Labeled as strategy in Domain Buying and Selling Discussion, started by Bob Hawkes, Nov 18, 2020

Replies:
16
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1,048

?

If the buy-it-now price for a domain name is $20,000, what would you set as the minimum offer value?

  1. less than $100

    9 votes
    3.8%
  2. $100 to $500

    10 votes
    4.2%
  3. $500 to $1,000

    17 votes
    7.1%
  4. $1,000 to $5,000

    66 votes
    27.5%
  5. $5,000 to $10,000

    67 votes
    27.9%
  6. $10,000 to $15,000

    47 votes
    19.6%
  7. $15,000 to $20,000

    24 votes
    10.0%
Total: 240 vote(s)
  1. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    I am interested in how you would set the minimum initial offer for a domain name with a retail worth of about $20,000. Do you set it to the minimum the system allows, or would you set it nearly to the full buy-it-now price, or somewhere in between?

    Maybe it depends on the type of name. Tell us in the discussion what factors you take into account in setting the minimum offer.

    Did you set higher minimums in the past, but found you got too few offers and had more success using lower minimums? Or, has it worked out better when the minimum was higher, with more negotiations leading to a successful sale at a good price?

    This is part of a NamePros community series of polls around the topic of setting minimum offer amounts. Please make sure to read the central article here, and vote in that poll, as well as all the linked polls (see list at end of that article). The data will be summarized in a future follow-up article.

    Thank you very much,

    Bob
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. lambo.com

    lambo.com Newsmedia.com VIP Gold Account

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    /2 i.e 50% thereof
     
    Last edited: Nov 18, 2020
  3. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    I would set it to 20K then. To avoid self-proclaimed brokers to begin with. I will need to respond to any offer with a counter; and counter (=BIN) is what self-proclaimed brokers need to spam the whole world with the domain in question as theirs. Also, to save time. Take it or leave it. Both reasons are not directly connected with the specific price range, I'll do the same for 2K domain or $200 domain... it is rather avoiding makeoffer listings...

    Edited: Unfortunately, in Afternic case, where a min. offer is needed also for the listings which are intended to be pure BIN listings, their search results with this setup would still show both BIN and make offer (min.=BIN shown before), which is illogical.
     
    Last edited: Nov 18, 2020
  4. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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  5. LUP

    LUP Top Contributor VIP

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    You must set minimum offer at least 60% from the BIN
     
  6. Keith

    Keith Top Contributor VIP ★★★★★★★★★★

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    Doesn’t make sense. Who set the valuation? The sellable number is anyone’s guess.
     
  7. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    Hi Keith,

    Trying to discern precisely what you mean. If you are saying that domain appraisal, by humans or bots, is far from precise, I totally agree.

    But I guess the question was intended to imply, if your best estimate, after looking at comparator sales, name structure, demand in term, advertiser stats and other objective means, suggested $20,000 (+/- some factor) for fair retail value, what would be the optimum minimum offer.

    Bob
     
  8. Keith

    Keith Top Contributor VIP ★★★★★★★★★★

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    There is no such thing as fair retail value. Domains are one off and as such a prediction of a sales price can’t be predicted, in the case of “domains in demand”.

    Junk is junk so little to value but that’s not your question. You’re talking $20k or beyond which is wide open to discretion.

    I’d say this thread is too discretionary to have merit.
     
  9. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    Thank you for your reply.

    But would that not apply to say, works of art? They are one-of as well, and subjective to appraise. Nevertheless there is a well established practice of auction houses, insurers, appraisers and others setting prices. Now sometimes they sell significantly more, or less, but the industry accepts that appraisal is still worthwhile, as long as uncertainty is kept in mind.

    In domains people can place any BIN that they want, and many are clearly unreasonable. However, I would say that with care, surely just as for the art appraiser, it is possible to place some price on a domain name that many would say was, perhaps fair was not the best word, but at least justified.

    There will always be outliers, because where the buyer and seller meet is the actual price that will be paid.

    Anyway, people set BIN every day, some more well based than others. So what should the minimum offer be (assuming that reasonable care was taken in coming up with the BIN)? Surely a relevant question? Anyway, don't wish to prolong it, but thank you for your view.

    Bob
     
    Last edited: Nov 19, 2020
  10. Jimmysun

    Jimmysun Established Member

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    I think set Bin if offer under 10k, above that should’ve considered put $100-1000 make offer and mostly it depends on your negotiation process how you persuade them for a reasonable price, if you open up a make offer option that means you give them a chance to counter it that might be a long journey while both sides usually are greedy.
    I think people are afraid if they pay 50k BIN to someone they don’t know, I doubt anyone would do that.

    another thing is if you’re using Dan I don’t think it makes sense put make offer over 100 if you’ve already set BIN since buyer can’t see the exact number you set.
     
    Last edited: Nov 19, 2020
  11. karmaco

    karmaco Top Contributor VIP

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    Unreasonable or unrealistic is subject to interpretation. I don’t like to judge other people’s prices. We continually hear about high amounts on sold names that we would not look at or ask that much for.

    And maybe thats the point— how do people get “unreasonable” amounts for a domain? The simple answer is they asked for it. You never get what you don’t ask for.

    Whats peanuts in an asking price for some domainers might be alot to another domainer. I might think it’s unreasonable to ask for peanuts on a good name 🤷‍♂️
     
    Last edited: Nov 19, 2020
  12. Samer

    Samer Top Contributor VIP

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    thanks @Bob Hawkes quality thread as always

    it’s all “numbers name” :sneaky: largely trial & error

    Thanks to everyone who shared their experien

    Samer
     
    Last edited: Nov 19, 2020
  13. Riz M.

    Riz M. EmpireNames.com VIP Gold Account

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    i had many bins set in that price range and i converted 100 usd offers into bin so i think minimum offer is not effected on your bin so i keep open minimum offer option for any offer. i converted many 100-500 usd offers into solid 5 fig sales..
     
  14. cornell

    cornell VCW.COM, BJR.COM FOR SALE Blue Account

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    Some Buy-Now Price setted not real
     
  15. DomainRecap

    DomainRecap Top Contributor VIP

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    If your answer is $5,000, which option do pick? How about if it's $1,000 or 10,000?
     
    Last edited: Nov 19, 2020
  16. Save Breach

    Save Breach Established Member

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    Nice question. I would say -- even in business (as I deal in some high value pre-owned products with corporate clients), purchase managers are really hard to negotiate with and most companies are very tight when it comes to financial approvals.

    So the first thing would be to see is to analyze the buyers level and mindset, the position of the buyer in the company heirarchy -- if its the CEO, then probably I would not budge from my BIN, but if the company is a bootstrapped startup or, having low funding -- probably I can consider a 4 figure offer if it isn't a high value liquid domain. If its a decent 4L.com, probably I would negotiate till 16k max.

    Cheers
     
    Last edited: Nov 20, 2020 at 6:54 PM
  17. Brian L.

    Brian L. Top Contributor VIP ICA Member

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    I generally set the minimum offer somewhere between $100 - $500. This results in a lot of lowball offers, but I view all leads as valuable. I’ve had a couple $100 initial offers that turned in to $5000 sales.
     

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