Questions I Ask Myself When Considering an Offer

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Knowing when to accept an offer and knowing when to pass is a critical component to investing in domain names. I want to do my best to maximize the revenue from a domain investment, but I do not want to regret passing on an offer.

Nikul Sanghvi shared two question he asks himself when considering whether or not to accept an offer. I always ask myself a version of question two, although I don’t really think about the first one much:

Domain names are unique assets, and I have rarely ever sold a domain name and acquired it again. Put another way, once I sell a domain name, it is highly unlikely I will ever have the opportunity to own and sell the domain name again. I want to maximize each sale while balancing the need for cash flow to grow my business and pay myself.

I want to share a few other questions I ask myself before accepting an offer or passing on an offer:

  • How much interest has there been in this domain name and how does this offer compare to past offers?
  • Do I believe anyone would pay for this domain name in a reasonable amount of time?
  • Would I rather have $x in cash or this domain name?
  • Are there reasons for why this domain name will be worth more in the future, and are those reasons worth passing on the offer?
  • What are the tax implications of selling the asset?

Probably the most important question I ask myself is this:

  • If I do not accept this offer, will I have regrets?

I have sold thousands of domain names since I started investing. I can only think of a couple of sales that I really regret. I have definitely undersold names in the past, but not to the point of regret. On the flip side, there are several offers I regret not taking.

Domain investors have different business models, and mine involves regularly selling my domain names. I always ask myself these questions before agreeing to a deal.

3 COMMENTS

  1. There will always be regrets in life…life is unpredictable!!

    “I have sold thousands of domain names since I started investing.” since 2019

    Regards,
    BullS
    CPA,MBA,PhD
    Magna cum laude
    Graduate of Domain King Academy

    MBA-My Big Ass(all of you have one)
    PHD-people having dickheads

  2. I always try to turn the page…I haven’t sold thousands, but over 500…i’ve tried to buy back 3 domains I’ve sold …offering 3x selling price, but the domain investor wanted 15 X selling price and this was only one year later…

    I’ve also dropped names (intentionally) or they expired (while i missed the renewal dates) and they were picked up and sold in the aftermarket…things happen…move on…I regret nothing

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