When I was 18, I went on a Royal Caribbean cruise with my family. It was the first time I was able to gamble in a casino. One night during dinner, I left the table to play video poker in the casino. I returned about 30 minutes later hunched over from carrying buckets full of quarters.
The video poker game had a double up feature. When I won a hand, the game gave me the option to double my winnings by choosing a card that was higher than the dealer’s. I could continue to choose to double down until I cashed out or lost. I won a big hand and successfully doubled a bunch of times until I cashed out with buckets full of quarters. Even though the win wasn’t technically a jackpot, the casino gave me a “jackpot” t-shirt because it was a substantial win.
That experience sometimes reminds me of negotiating domain name sales. In order to close a strong deal, domain investors need to turn down good but less than optimal offers. Sometimes, these offers are good or great, but they need to be turned down to really maximize a sale. When turning down offers, you never know if the buyer will return or will quietly tap out and choose a more affordable option.
Having a strong conviction in the value of domain names has probably netted me a considerable sum in sales, but it has also cost me money. I have domain names in my portfolio that may never sell for the amounts of money that have been turned down. Obviously, the next prospect who wants it may lead to a big sale, but it can be a crapshoot, for lack of a better term.
Last week, I was negotiating the sale of a 2 word .com domain name. In my reply to the buyer, I mentioned a $108,000 offer that was received in 2023. We went back and forth a bit, but our discussion ended without a deal. His best offer came in at $110,500. I declined and countered a bit above $150k. I have no idea if he will return, but I do believe my domain name is worth more than he offered. Will it turn out to be the right call? I hope so but only time will tell.
Unlike doubling down in video poker, I won’t totally lose if this buyer never returns. I still have a valuable domain name that someone will buy. The fact that 2 different $100k + offers have been made in just a couple of years proves the value of the asset. It’s just a matter of time.
Turning down good offers in the hopes of closing a great deal is a thrill. It always reminds me of playing video poker for the first time.
