NameSilo

What Strategy Do You Use For Setting Minimum Offer?

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

Replies:
11
Views:
1,762

?

What strategy do you use in setting the minimum offer amount?

  1. I use the minimum offer amount the system allows

    37 votes
    25.9%
  2. I set all my domain names with the same minimum offer amounts

    34 votes
    23.8%
  3. I use a more or less fixed ratio of the buy-it-now price, higher price, higher minimum offer

    59 votes
    41.3%
  4. I set the minimum offer to nearly the full buy-it-now price for that name

    13 votes
    9.1%
Total: 143 vote(s)
  1. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

    Posts:
    7,473
    Likes Received:
    24,360
    Probably some domain investors set minimum offer amounts to a constant value, while others set them as a ratio of the buy-it-now price. What strategy do you use in setting the minimum offer 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 ones.

    Thanks for sharing your strategy. I will summarize the results from all the polls and comments in a later NamePros Blog article.

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

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

    Posts:
    7,473
    Likes Received:
    24,360
  3. BradWilson

    BradWilson Upgraded Member Gold Account

    Posts:
    566
    Likes Received:
    1,536
    I'm now switching my strategy after reading your posts.

    You reminded me just how important having a good strategy is so I'm now going to use a calculated ratio of the BIN.

    I was using a set minimum but not going forward.
     
  4. CJ6

    CJ6 My favorite movies are too offensive now. Whimps. VIP

    Posts:
    2,985
    Likes Received:
    3,433
    I don't set minimum offers.
     
  5. trelgor

    trelgor Top Contributor VIP ICA Member ★★★★★★★★★★

    Posts:
    790
    Likes Received:
    709
    Same as BIN. (That means that when a weak minded broker checks the minimum requirement, they will be forced to inform the buyer that the price seems to be, well, the price, and that this seller prices to sell, but does not negotiate. This is actually a pretty good sales argument. Nothing points at defaulting to discounts making any difference, I'd wager the contrary, both for sell through and bottom line. Thing is that if you are too eager, the buyer becomes uneasy).

    Edit: You need fair prices set though across your entire portfolio to be able to defend that strategy and proudly deflect.
     
    Last edited: Nov 25, 2020
  6. JudgeMind

    JudgeMind Top Member PRO VIP Trusted Contest Holder

    Posts:
    6,088
    Likes Received:
    18,910
    personally i dont use make offer at all. buy it now with reasonable pricing and an instalment plan seems to do the trick. Of course you wont be getting any investors looking to buy at end user pricing but overall the margin you make on each sale goes up significantly. Also, remember to be patient.
     
  7. Haroon Basha

    Haroon Basha IZUQ.COM VIP Gold Account

    Posts:
    3,621
    Likes Received:
    5,515
    I want to catch the Buyer, so I fix $ 20 as Minimum Offer, even if the domain name is $ 1000.
     
  8. gericsb

    gericsb Top Contributor VIP ★★★★★★★★★★

    Posts:
    1,111
    Likes Received:
    394
    I use But It Now (BIN) on all my listed domains and usually set Minimum Offer to about 60% of the BIN.

    I have read some other opinions on NP that suggest that not having a Min Offer can actually lead to more (and higher) initial offers.

    I have not tried removing Min Offers yet, though, so I cannot comment on that yet.
     
  9. Future Sensors

    Future Sensors 78% of human domainers will be replaced by robots Gold Account

    Posts:
    1,075
    Likes Received:
    3,536
    On DAN, I'm using BIN prices for all domains. Only for domains priced over 2,500 GBP I'm also using a Starting Offer amount of 88% of the BIN price. For domains below 2,500 GBP, I completely disable making offers by entering the same amount for both BIN and Starting Offer. DAN then hides the "Make an offer" option for the domain.

    On Sedo, I'm using BIN prices for all domains, and an account wide setting for the minimum offer price. Setting: "I want to accept offers on my Buy Now listings.", "Apply only to Buy Now listings in the following price range: 900-no max", and "Offer = 90% of BIN price".

    On Afternic, I'm using BIN prices for all domains, and the default $20 minimum offer price for all of them. For domains with a BIN over USD 2,500, I've also entered a hidden Floor price of 90%, which is invisible to potential buyers.

    Nameservers are pointing to the DAN platform.
     
    Last edited: Nov 29, 2020
  10. gericsb

    gericsb Top Contributor VIP ★★★★★★★★★★

    Posts:
    1,111
    Likes Received:
    394
    Thanks, Future Sensors.

    One question. I am new to Afternic. Just listed my domains there last week for the first time ever.

    What is the point of the $20 default minimum offer and why do you leave it at $20? Especially if/when your Floor is a lot higher.

    I don't really get that setting???
     
  11. Future Sensors

    Future Sensors 78% of human domainers will be replaced by robots Gold Account

    Posts:
    1,075
    Likes Received:
    3,536
    Hi gericsb,

    Good question. The floor price is the lowest acceptable sales price Afternic's sales executives can negotiate without seeking my approval. This price is not viewable to buyers. Visitors will still be able to place bids with a minimum amount of the default $20, and sometimes this is a way of opening a conversation or deal.

    However, on DAN, where the nameservers of all my domains are pointing to, I'm using other settings, as described earlier. Including "buy in installments" options with a maximum of 10-12 months.
     
    Last edited: Nov 29, 2020
  12. gericsb

    gericsb Top Contributor VIP ★★★★★★★★★★

    Posts:
    1,111
    Likes Received:
    394
    Ohhh!!

    Thank you! I get it now. I can kind of see the appeal now of the Minimum Offer.

    May be a good way to gauge interest in our domains without being committed to taking an offer well below what we want.

    I understand the Floor now better, too.

    Thank you!
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
biix
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...