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What to do after an initial offer?

Labeled as discuss in Domain Buying and Selling Discussion, started by saucey, Oct 5, 2020

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  1. saucey

    saucey Top Contributor VIP ★★★★★★★★★★

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    I've always pondered this question.

    Should you always counter an initial offer even if the initial offer seems fair and prudent for the domain in question?

    In the past, every domain that I've received an offer on, has been very low and unreasonable.

    Today I received an offer that seemed quite reasonable for the domain in question. I received it through a reputable domain broker who said that their client is open to counter offers and negotiations. This leads me to believe that I should be countering.... however I know Brokers often say this because the more the name sells for, the more commission they make... but as a seller you still run the risk of angering and/or scaring away the buyer by asking for more money.

    Sometimes people are interested in buying a domain even if they don't have an exact purpose in mind, but when the negotiations become hostile.... or even if they don't become hostile, but they feel that the buyer is being selfish or unrasonable, they have no problems walking away from the whole deal and writing it off...

    So, back to the question....

    If you receive what seems to be a reasonable offer should you always try for more?
     
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  2. Akinola Taiwo

    Akinola Taiwo Established Member

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    Same thing applicable to me to.....I think if a domain want to sell it will sell....either accepting offer or counter such offer...

    It happen to me....in one of my domain name got first offer I accept the offer....but the buyer refuse to pay...I have to realist the domain name again.....

    Second time I received another offer I counter offer...but the buyer refuse to make payment.... I have to relist the name again....

    Thirds....time got another offer for the same domain name...I accept the offer but buyer refuse to pay...for the very third time.....

    But I hope who I'll pay is coming.....
     
  3. D Haynes

    D Haynes Top Contributor VIP

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    I always counter. In any area in life I have always understood that an offer is there to be countered. So knowing that, I always offer less than I'm prepared to pay expecting to be countered and I assume that's how prospective buyers are thinking when they make an offer to me.
     
  4. saucey

    saucey Top Contributor VIP ★★★★★★★★★★

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    Thanks D Haynes!

    I have always felt that way as well. However, I have been burned a couple of times by trying to be too greedy and scaring the buyer away.

    Having said that.... I agree and think it probably is best practice to counter with a reasonable number....😁

    I suppose the next question would be, what is a reasonable counter? Obviously it's whatever you feel the domain name is worth, but if you receive an offer that you are happy with.... but feel like seeing if you can get more.....should you counter 10x that original offer that you thought was reasonable or 2x that offer? Or....?
     
    Last edited: Oct 6, 2020
  5. Mister Funsky

    Mister Funsky Top Contributor VIP

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    Every name I have has an asking price and a full retail selling price. Depending on how the portfolio is doing at any given moment determines what my definition of a 'reasonable' offer is.

    If you can exchange the word 'acceptable' for 'reasonable' in this situation, I would take the offer. It is not worth giving the buyer more time to find another name if the counter is too high...and as you say, a broker is paid on commission.
     
    Last edited: Oct 6, 2020
  6. saucey

    saucey Top Contributor VIP ★★★★★★★★★★

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    From my original post, I meant to say that if the buyer feels that the SELLER is being selfish or unreasonable the buyer may have no problem walking away from the whole deal and writing it off.
     
    Last edited: Oct 6, 2020
  7. saucey

    saucey Top Contributor VIP ★★★★★★★★★★

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    Thanks! That's a really good way of looking at it Mister Funsky. 👍🏻
     
  8. karmaco

    karmaco Top Contributor VIP

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    You should not be worried about any of that. Who cares what they think— you have the asset they want. You are not in the business of making friends but of selling, There is nothing selfish about running your business trying to get biggest return possible on your names. Don’t give the control over to them.

    Without knowing what the name is hard to say but I agree with the always counter philosophy even if its just a bit higher. The only scenario where I would not counter is a name I am seconds from dropping or a questionable name- trademark etc that I just want gone.
     
    Last edited: Oct 6, 2020
  9. D Haynes

    D Haynes Top Contributor VIP

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    For it to be an offer I was happy with it would need to be say 80 percent of my BIN price (or at least the price I had in my head). I'd probably try to counter above the price in my head expecting to be countered back down to the BIN price which would make me another 20 percent of the original offer I was already happy with.

    All my names are BIN priced so that wouldn't work for me to counter with a price higher than the BIN but if your names are just "make offer" you could probably get away with it.

    I think a 10x counter will more offen than not scare them away but there are always exceptions I guess.

    Rambling now lol hope some of that made sense.
     
  10. iAdam

    iAdam Upgraded Member Gold Account

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    Most people counter offer asking for more money.

    I usually do the same but this year I got an offer and i accepted it immediately because the price was right so I wanted to close the sale.
     
  11. sound

    sound Established Member ★★★★★★★★★★

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    I have always found that if people want or need the domain they will stick around.
    Its the tyre kickers who move on or mess you around
     
  12. biggie

    biggie Restricted (Chatroom)

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    Hi

    it always depends on the domain, the acquisition cost, how long you've had it, how many previous offers, etc.

    still, i have accepted many initial offers, without submitting a counter offer.
    and on other side, there were many initial offers that i declined, where i prolly should have accepted

    because future offers may not be as high or may not come at all.. again, depending on the actual domain name.

    imo...
     
  13. Akinola Taiwo

    Akinola Taiwo Established Member

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    It not bad if an offer is reas
    Has the buyer pay after you had accepted his/her initial offer???

    Good luck!!!
     
  14. smarti

    smarti carpe diem

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    the other day I read through sedo's faq for buyers, where they're suggested to go with 1/3rd of entire budget for an initial offer, so unless the initial offer was not just testing the waters, one could estimate buyer's total budget to make the deal....but there's no universal working equation to it though.
     

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