If you are similar to me, I bet that the majority of the inbound offers you receive are really low. I have found that most offers are either made by people trying to lowball me or people who are uneducated about domain name values. The result is that they offer tens or hundreds of dollars for valuable domain assets.
Early last year, I won a name inexpensively on NameJet. The cost was less than $500, and I thought it was worth a few thousand to the right buyer.I went prospecting, and I came up empty. I offered it for a couple thousand dollars on a few venues, but I didn’t find a buyer. It was a name I thought I was going to hold for a while.
At the end of the summer, I received an unsolicited offer for the domain name via the Voodoo landing page. The offer was for $20,000 and it came from a legitimate source.
At first, I was stumped about how to respond. I didn’t want to risk the offer by asking for more, especially because it was clear to me that this domain name was not really worth $20,000. I also didn’t want to immediately accept the offer fearing that the buyer would think he offered too much out of the gate. In all my years buying domain names, I’ve probably only bought a couple for my initial offer. Everybody counters, and I didn’t want to give him the idea that he would be overpaying.
I decided that my tact would be to call the buyer and ask him what his plans would be for the domain name figuring he would sell me on his idea and I’d agree to the deal. His idea was pretty fascinating, and he had the background to make something big happen. I agreed to sell him the domain name shortly after that. I think a personal conversation helped with this negotiation because I didn’t risk losing the $20,000 offer and I also didn’t immediately accept it either.
The end of the story isn’t nearly as good as the beginning. Unfortunately, the buyer didn’t seem to receive the funding he was expecting, and he put the purchase off until January. Since then, I haven’t heard back from him and I assume the deal is off. Easy come, easy go.
What tactics do you find effective when you receive an offer that is well above your ideal sales price?