I am sure you’ve heard the phrase (or one like it), “pigs get fat, hogs get slaughtered” as a warning to not be greedy. Well, unfortunately, I want to share how I got greedy and lost what could have been a profitable and substantial deal as a result.
I recently received an unsolicited mid five figure offer to buy a domain name I had acquired within a year for under $150. The offer started in the low five figure range, and after a couple of emails, the buyer made a mid five figure offer. Under normal circumstances, I probably would have accepted the offer, but having just closed a very large sale, I countered with a higher price. I figured the buyer would either accept the higher price or stand firm with the offer, and I could accept that if the buyer would not budge.
I sent a couple of follow up emails to see if we could find common ground somewhere between the offer and the price I provided. Silence. Time has passed, and I presume the prospective buyer chose something else. That is sometimes how it goes in the domain investing business.
I have always assumed that a prospective buyer who makes a serious offer will not simply go away when a higher counter offer is proposed. Typically, if someone makes a very strong offer, there is a good chance we can work out an agreeable price after a bit of a back and forth. Afterall, quickly accepting a good offer may give the buyer cold feet. I got greedy and lost a really nice deal where the escrow would have cost more than the domain name cost me!
When reading forums and social media, there is a propensity for people to advise others to go for a home run when they have received a solid offer and seek advise on how to respond. It is easy to advise people on negotiating when it is their money on the line. Sometimes buyers are willing to increase their offer to close a deal or will simply stay firm at their price hoping the seller opts to accept their offer. In this case, the prospect turned into a ghost.
Coming off of a really nice sale, I was willing to take a gamble and acted greedy. Sometimes it works out for the best, but sometimes, it does not.