As a long-term holder of domain assets I’m not in a particular rush to sell my domains to the first offer that arrives.
Offers come and go, and for the most part domains appreciate in value with time. Even when a reasonable offer is made, it should be the right offer for a particular domain in order to motivate me to commit to a sale.
It’s important to first weed and feed your domains, however.
An interesting lesson I’ve learned is that even when the other party seems to be in a rush to acquire one of your domains, that’s not necessarily a good thing.
Recently, one of my aged two word .com domains received an offer for which I sent out a quote. The other party stalled for a weekend, then came back with a counter-offer that was 30% less than my asking price.
Despite making a great ROI on a $100 investment, that counter-offer was not enough for me to sell the domain.
Instead of responding right away with a yes or no, I told them that I would think about it, and asked how soon they would be willing to wrap up the transaction.
That extra time, apparently put pressure on my buyer who appeared to be jittery and anxious to complete the acquisition as soon as possible.
As I found out, there was a reason for them to act like that: they had negotiated the acquisition of the matching .ORG, in a Sedo transaction.
By stalling for just one day, without really saying no to the counter-offer, I was able to gain an important advantage. My counter-offer was very close to my original asking price, and the buyer agreed immediately.
Instead of rushing to complete the domain sale, I managed to maximize my ROI, all while retaining a civilized level of communication with the buyer.
Domain assets are no different than other premium assets, such as works of art. But that’s fodder for another story I’ll share at some point.
Generally I see both sides of the debate when it comes to how fast one should try to close a deal. In your scenario, I completely agree that one shouldn’t close so quickly with so much money still left on the table. However, there are lots of situations where early buyers remorse may start to set in if a potential buyer has too much time to think about the acquisition. This is after all, mostly an impulsive sales industry.
It depends on the domain name.
There are a lot of offers I have recieved on domains names, some I didn’t even list for sale, that I wished that I had just accepted the offer and closed it. I’m sure many others would tell you the same thing Theo. There are a lot of options and marketplaces for smart buyers.
Yamada – Closing a deal with a rushed mindset is the sure way to leave money on the table. When thousands of dollars are at stake, the choice is yours: accept a lesser offer and close now, or manage time to your advantage.
The argument some buyers make, that they have alternatives, does not work for me. It’s a silly attempt at extorting a lesser price.
Also read the “stick to your guns“ article.
What is the ROI for you in the sale of a domain name?
Supply and demand is the oldest in existence.
I like to read post of you to write on as heroes what have achieved after an offer and counter-offer to do an interested buyer of your domain names.
I read is 10 years, many post where written as:
Receive an offer for $ 10,000 but not interest and eventually sell for $ 2,500 who write this be the big domainers to be negotiable relations with TDNAM and Godaddy, their purchases are not new domain names be expired domains to buy for less than $ 5 and after a month demand up by 1000 percent ROI this is not speculation is any market in the ancient and modern world.
Joe – I’m struggling to understand the point of your comment, as it seems you translated it from Spanish.
Therefore, I’ll respond as I perceived it.
ROI varies, it can be hundreds to thousands of times. My typical sales involve domains I hand-registered years ago, or that I acquired for $10 to $200. I resell those for four to five figures.
Supply and demand does not dictate the prices, quality of domains does. I’ve sold domains after a year, and domains after 10-12 years. The important thing is to hold onto quality domains.
I’ve turned down $10k+ offers for domains that are worth considerably more. Those who sell a domain that was quoted at $10k but sold at $2500 most likely are inexperienced or need the cash because they invested close to that selling price.
The focus of my post is how not to rush negotiations, and in this case, knowing that the other party potentially also got the .ORG, it was obvious they had more money to spend than what they offered.
The bottom line: if you don’t ask, you won’t get. You can only sell a domain once.