Earlier this month, I wrote about changing the minimum offer for my portfolio at DomainNameSales.com to $100,000. The primary objective was to see if buyers would continue to increase their opening offers prior to my responding. I thought that it would put more cards on the table for me to look at before taking action.
In addition to the comments that were shared below the article, I received a few emails from people who suggested this was the wrong tactic. I continued with it because I wanted to see for myself how it would work, and I figured it wouldn’t hurt to try it out for myself.
I recently removed this minimum as a result of a failed negotiation I had. The prospective buyer made an opening offer of $15,000, then he increased it to $20,000, and then he finally increased it to $50,000. I responded to his $50,000 offer to let him know that the domain name is worth more to me, and he responded that his best offer was actually $20,000. He submitted a higher offer because he saw the message that said the offer was too low, and he raised his offer to try and get the system to accept an offer for me to see. I am glad that I was not going to accept his $50k offer or that would have been a letdown.
I previously tested a minimum offer of $1,500 to weed out the annoying $10 offers, and I found that people would keep raising their offers and stop once the minimum was met. I felt that this wasn’t a good idea because people might have a misconception that they were submitting an acceptable offer, which was usually not the case.
With the new high minimum, I incorrectly assumed that people would be reluctant to submit a much higher offer for fear that it is accepted. I would not be comfortable submitting a $50,000 offer on a domain name I valued at $20,000. Apparently, I was wrong.
I have removed a minimum offer from my portfolios at DNS. When I receive the uneducated offers, I can determine if it’s worth spending time explaining the value or simply ignoring the inquiries.