What percentage of the first seller price?

[mixmox]

So I show interest in a website and get a price back. Sometimes these just seem completely out of any relation to the domain in question.

Is it possible/likely that people are quoting prices when they would accept 10% or 30% of that initial offer? Any ways to investigate this?

 

[lothos]

the only way to find out is to counter offer.

10 or 30% is probably not likely but 75% or even 50% definitely happens. It all depends on what you negotiate with the seller.

 

[nielsencl]

- The first question is this: How do you know what the real value of the web site is? Just because no one would pay me more than $10 for Bizprolink-Internet.com doesn't mean I would sell it for that. The site I have on that domain is one of the biggest money-makers I have. The point is that while the domain may not be worth much, the domain and site may be worth much more than you would expect.

- Before you counter, ask the owner why they think the site is worth so much? This does a couple of things: 1) It lets the owner know you are really interested, and 2) it lets them know that if they want to sell the domain to you, they are dealing with a professional who is not going to be impressed with anything that cannot be documented. They will have to deal straight with you or they will not get the sale.

- Ask for proof of income and traffic. If the site is making $100 a month, it's not uncommon for the seller to ask from $1,200 to $4,800 or 1 to 4 years of income, while 1-2 is most common. If they are asking less, make sure provide proof and ask where the traffic is coming from. Somw owners buy traffic which dries up after they sell the domain or site. Since you contacted them, this is not as likely, but you need to be sure.

- You contacted them and they have no idea how much money you have. If you are not looking to sell and someone asks for a price, are you going to tell them something very low? No. If you don't care if you sell or not, are you going to say something very high? Yes.

If they have proof of income, then you know why the price is high. If they don't, or the traffic and income are low, then you know they are just trying to see how much they can get for their site.

- In cases where the domain / site are not worth what the seller are asking, then you can feel pretty confident about making a much lower offer for the site. If it's REALLY low, they just tell them why you think the price should be so low. Don't BS them and don't insult the design, talk more about the traffic and income because that's not personal. If you say the site sucks and you just want the domain, they may get offended and not sell. Don't bring up anything negative that could be seen as personal.

Make your counter something lower than you top price, but high enough to get their interest. What that is will depend on how much you want to get the site. You can offer your top price, but they may take less. They may also expect that what you offer is not your top price, even if you say it is. Better to offer a lower price, even a little, and then come up if you have to.

- It's best to do this before you contact a buyer or seller, but you should find out as much as you can about them. The reason is that it will help you to know what to say when you contact them and when negotiating. If they are a wealthy domainer with 3,000 domains you should act differently then if they are a newbie domainer with 30 domains.

Good Luck!

 

[floname]

Is it possible/likely that people are quoting prices when they would accept 10% or 30% of that initial offer? Any ways to investigate this?

Are you interested in the website or just the domain? Put in some due diligence and determine the amount of traffic on your own and see if his claims are consistent with what you've determined. If he's selling based on revenue, you need iron clad proof to see how well the current website is monetizing. Depending on the number that he gave you, I would start at 40-50% and let them counter. Be prepared to explain your offer by attempting to undermine the perceived value from your perspective.

I also approach acquisition negotiations "on behalf of my client", which will usually level the playing field if the seller thinks he's dealing with a middle man.

 

[mixmox]

- The first question is this: How do you know what the real value of the web site is? Just because no one would pay me more than $10 for Bizprolink-Internet.com doesn't mean I would sell it for that. The site I have on that domain is one of the biggest money-makers I have. The point is that while the domain may not be worth much, the domain and site may be worth much more than you would expect.

- Before you counter, ask the owner why they think the site is worth so much? This does a couple of things: 1) It lets the owner know you are really interested, and 2) it lets them know that if they want to sell the domain to you, they are dealing with a professional who is not going to be impressed with anything that cannot be documented. They will have to deal straight with you or they will not get the sale.

- Ask for proof of income and traffic. If the site is making $100 a month, it's not uncommon for the seller to ask from $1,200 to $4,800 or 1 to 4 years of income, while 1-2 is most common. If they are asking less, make sure provide proof and ask where the traffic is coming from. Somw owners buy traffic which dries up after they sell the domain or site. Since you contacted them, this is not as likely, but you need to be sure.

- You contacted them and they have no idea how much money you have. If you are not looking to sell and someone asks for a price, are you going to tell them something very low? No. If you don't care if you sell or not, are you going to say something very high? Yes.

If they have proof of income, then you know why the price is high. If they don't, or the traffic and income are low, then you know they are just trying to see how much they can get for their site.

- In cases where the domain / site are not worth what the seller are asking, then you can feel pretty confident about making a much lower offer for the site. If it's REALLY low, they just tell them why you think the price should be so low. Don't BS them and don't insult the design, talk more about the traffic and income because that's not personal. If you say the site sucks and you just want the domain, they may get offended and not sell. Don't bring up anything negative that could be seen as personal.

Make your counter something lower than you top price, but high enough to get their interest. What that is will depend on how much you want to get the site. You can offer your top price, but they may take less. They may also expect that what you offer is not your top price, even if you say it is. Better to offer a lower price, even a little, and then come up if you have to.

- It's best to do this before you contact a buyer or seller, but you should find out as much as you can about them. The reason is that it will help you to know what to say when you contact them and when negotiating. If they are a wealthy domainer with 3,000 domains you should act differently then if they are a newbie domainer with 30 domains.

Good Luck!

Thanks these are all very valuable strategies.

I am specifically looking at domains which have not been developed, for their potential to rank in google, that is were I get the value for them.

Lets see if I can employ your strategies to get some decent domains.