Why "Make an Offer"?

[TLDnetworks]

Why is it that most Domainers list all their domains as "Make an Offer" on their website? Even at Sedo, the sellers list thier domains as make an offer.

Of all the people out there, I would think that domainers would know what they want out of a name and what price to list at. Is it that they are afraid of leaving money on the table? Is it that they really have no clue? Is it that they expect too much and are afraid of scaring off buyers?

Personally, I rarely stick around a website that has all their domains listed as Make an Offer. When I have, and made an offer, 9 times out of 10 they send back rude rejection notes. I felt the offer was fair, and if they are so offended, then why not just list a price?!?!?!?!?!

Rant done for now... :wave:

 

[bensontwenty]

Couldn't agree with you more ck. I normally skip by the "Make an Offer' sales as you just know that the person has an unrealistic, inflated valure for their domain. Having said that, it is commonly done because a domain is only worth what somebody else is willing to pay for it so a lot of people go down the offer road to capitalise as much as possible on this.

My personal hate is the old Reserve Price for auctions. For crying out loud, just post the start price at the minimum you will accept and take it from there. I personally think that reserve prices are used simply for cheap advertising....

...my rant over :lol:

 

[spikedo]

The prices for domains are constantly changing. For example, when Duke does his weekly sales report, a particular style or extension can go for big bucks. Then, everyone wants a similar one and prices rise. Or, if you need money for a new acquisition or car repairs, you might take less. Then you have to change it. I find it more a convenience not to list prices.

 

[Qwert]

"Is it that they expect too much and are afraid of scaring off buyers?"

I think thats the one for most.

 

[TLDnetworks]

Greed = 100% of ZERO 8-X

I guess I can see it for a FEW special domains, but for ALL? Seems ridiculous.

 

[AdoptableDomains]

I use serveral pricing techniques myself. If I just want to turn the name quickly, I'll post a price. I have pretty much quit putting a minimum bid, because I found that's what eveyone bid.

If I don't mind holding a domain and know it has real value, I'll leave it "make offer". In this case sometimes you will get offers higher than expected, and I have received a few like this. Some I might have priced at $250, I got a first offer of $500 and made a quick counter to $600 for a quick sale. The right person with the right need and budget came along. However, I have been in the market a while and know which names to hold and have patience with and which should be moved quickly if a buyer comes along with cash. I also don't ever ask more than 5 figures for any of my domains, rarely ask 4 or 5, and most often get 3 figure sales.

 

[RJ]

Putting a value on a name is always a challenge. As a domain owner, when someone writes to you about a domain you own and asks if it's for sale, you want to get the best possible price for your name of course! But choosing a price presents you with two possible problems. First, if you name too high a price, you may look bad or "scare off" the potential buyer. On the other hand, if you name too low a price and sell it, you might always wonder if you sold for too little and could have gotten more.

Some don't want to deal with the pricing process and just say "make an offer" hoping for a high dollar offer to come back. This seems like a possible solution, but it just doesn't work. If the potential buyer writes back at all, more often than not it's with a lowball offer. And I've found that when a buyer makes an offer on a domain, it's seldom that they will be willing to pay any more than twice that price.

I say if you're not comfortable pricing your names, at least give a price range. Otherwise you'll be losing sales to people who don't know what to offer.

 

[dgridley]

In my case, I'd really rather not sell at least 50% of my domains.. I bought them with the intention of developing them at "some" point.. so I usually leave the "Make Offer" on. If someone is really interested in a domain, they'll make some kind of overture.. that usually gets the ball rolling, eh?

 

[Coastalguy]

I usually put the "make an offer" price on my names at sites that I have yet to make a sale at (ie SEDO). I just don't have a feel for what the names are worth at those sites and am always worried about "giving" a name away. I've tried putting fixed prices on my names at SEDO as well, without any luck (prices too high or just so so names?).

I tend to agree that the "make an offer' sales attempt does tend to make people think that the asking price may be out of their reach. I PM them an offer anyway and have always received a cordial response and a ballpark figure. Bought a couple of names this way but usually it results in a nonsale.

Nice thread,
ST

 

[namemarket]

Agree with Westblock for the most part, except I don't agree about sellers being rude or upset over offers they view as low. Very few sellers seem to be like that, IMO. Instead I find sellers who reply saying just plain 'no' with none or few comments or making a counter offer even more annoying.

For example, perhaps the seller secretly wants say $500 but say's make offer in his post. SInce I am forced to make a blind offer I naturally offer low, say $100. The seller replies saying no and little more, perhaps just that 1 word (happened again today at another domain forum, 'no' and nothing else said).

However, seller may have been willing to go down to say $300 and I may have gone up to $300 so we could have a deal. However, seller refuses to suggest a lower price, or ask for a counter offer so nothing happens.

Using the above scenario as an example, a few times I have seen that name we could have agreed to buy at say $300 later sell for say $200., less than the $300 I would have paid if seller had better communication skills. It's unfortunate so many sellers do not appear to realize this happens.

Because of being forced to make blind offers I rarely make offers or bother with make offer threads but do often respond to good name threads with prices stated.

 

[primacomputer]

I can’t speak for everyone, but I do not list prices for domains simply because I want to maximize my return.

By definition, in a free market, the value for a domain name is what the buyer and the seller agree on. How can you possibly expect me to calculate this value with only half the equation?

I am mainly interested in retail sales, and am not worried about scaring off low end resellers. Not to be nasty, but It doesn’t bother me that I don’t have to waste time rejecting $100 offers for a domain that will eventually sell for $10,000?

I agree that many people have unrealistic expectations of their domains value. The fact remains that if you look at this years top 100 sales there are number of $10K+ sales that would have been appraised for ~$100 here. I, for one, am willing to sit on a good name for as long as it takes to find the right buyer, and I do find them.

That being said, why not make an offer? As I have said, the price depends on the buyer. An end user needs a name, while a reseller just wants it. You’re in a much stronger bargaining position than an end user, and can leverage that to get a much lower price. The worst that can happen is I tell you you’re not in the ball park.

 

[equity78]

Very good thread guys, I agree Is this your business, Dell does not sell a new computer make an offer, Polo does not come out witht their Fall Lineup saying this is a new design make an offer. You should know the market, know what the name makes PPC, and know what you want. I was a broker for a long time and people always worried about getting the last .10 If you bought MSFT at $12 and wanted $20 and it got there sell, do not monday morning Quarterback I could have got $24 damn There will be another trade. If you do that your whole life you will go crazy. WHy did I marry her she's a 7 my new secretary is a 9 I could have her If I wanted But I sold My marriage proposal to short. There will always be another name.

 

[TLDnetworks]

Good Stuff NP's. Keep the theories coming. :tu:

 

[TLDnetworks]

I do not list prices for domains simply because I want to maximize my return.

Thanks prima, but at what point is your return maximized? If you pay $8 for a name and an offer of $25 comes in you've more than tripled your money.

So, you say "This name is worth $100" and don't sell. You've just lost the revenue stream that could have gone to acquiring a premium or three more names. Now, on the other hand, you do sell for $100, but the person you sold it to now spins it for $1000. Did you loose margin? Did you loose $900?

What if you never get another offer of even $25? I guess my point is that you're never going to know when the offer is maximized, and I'm wondering if by listing all of ones names as "Make an Offer" they are actually loosing sales and the revenue stream to keep their business/hobby/whatever going...

 

[TLDnetworks]

You should know the market, know what the name makes PPC, and know what you want. I was a broker for a long time and people always worried about getting the last .10 If you bought MSFT at $12 and wanted $20 and it got there sell, do not monday morning Quarterback I could have got $24 damn There will be another trade. If you do that your whole life you will go crazy. WHy did I marry her she's a 7 my new secretary is a 9 I could have her If I wanted But I sold My marriage proposal to short. There will always be another name.

equity78, great point. Exactly what I'm talking about. I'm guessing that most if not all the domainers out there are in it for the $, which is essentially a business. In a business, you have to make money and you have to re-invest in the business to prosper.

If the many stock traders who owned Qualcomm stock would have sold their $20 share at $150 and not held out for $175 there would be a hell of alot more multi-millionaires than there are now. Those who sold are livin' large, those who held out to squeze the last penny out of it are back to working at the burger joint and servicing their debt.

 

[Anthony]

There are pros and cons to the decision to list domains as "Make Offer", but imagine if you were selling a name that happened to have the initials of someone or some company that would pay anything to get it. You wouldn't want to miss out on that, when they pay you the $10 you have listed, but would have paid $500. Greedy? Maybe, but, as Donald Trump says, it's only business.

Maybe it doesn't work as well on forum sales threads, though. It does tend to get annoying sending a hundred PMs...

 

[primacomputer]

Maximizing your return means not only getting the most cash possible for a domain, but also getting the most cash for the man hours invested. It also means managing overheads and minimizing dead inventory.

It's not about selling one domain for $25 or $25,000. It's about how much you make, how much you spend and how hard you work. For example...

Johny sells 4 domains for a total of $55,000. These names are high value so they go through escrow. He pockets $50,000. He maintains an inventory of about 500 names for which he pays about $5,000 in reg fees. This leaves him with a net profit of $45,000. He spends an average of one hour a week selecting, registering, monitoring, and marketing his names He spends an average of 10 hours negotiating each sale. That's 92 hours a year.

Johny makes an average of $489 an hour and puts in less time than a weekend warrior. His less-than-part-time job earns him $45,000, a respectable annual income.

How many domains do you sell for $25 at a $17 profit? How many names do you have registered? How many hours do you spend selecting registering and promoting your names?

I'd be really interested to see some real world numbers. One of the main reasons I'm here at NamePros is to determine if this kind of reseller trading is something I'd want to get in to.

 

[Redleg]

In my case, I'd really rather not sell at least 50% of my domains.. I bought them with the intention of developing them at "some" point.. so I usually leave the "Make Offer" on. If someone is really interested in a domain, they'll make some kind of overture.. that usually gets the ball rolling, eh?

It's the same with me.

I have development plans for 60-70% of my names, but I may sell them if I receive an acceptable offer.