For quite some time, I set what I believe is a fairly generous minimum offer requirement of $1,500 on my DomainNameSales.com account. The thinking was that someone willing to spend 4 figures on a domain name is a better qualified prospect than someone who would only offer registration fee.
After trying this for quite some time, I decided to set the minimum offer on my domain names to $100,000. Even though the majority of my domain names won’t sell for close to $100,000 a piece, there are several important reasons I chose to increase the minimum offer.
1) I have found people “walk up” their offers when they get the error message that they didn’t meet the minimum offer. Once they magically hit the $1,500 number (or thereabouts) they tend to stop. Despite the fact that it’s clearly a “minimum” offer, I don’t want someone to have any expectations that I would consider selling a domain name like Lilac.com for close to $1,500. IMO, some people may get confused with the minimum offer situation, and with much distrust for domain investors, I don’t want to complicate things.
2) I think people will continue to “walk up” their offer and tip their hand more if that minimum is higher. Yes, there will still be offers that aren’t legitimate because they want to test the minimum offer, but I think it will help reveal what someone is willing to pay at the beginning rather than having to negotiate longer.
When someone submits an offer that doesn’t meet the minimum, I am still able to see it. Let’s say someone offers me $25,000 for Graceful.com. Even though they would see a notice that they didn’t meet the minimum offer, I can always reach out and tell them I’d be willing to do the deal.
The other option I could utilize is to not include a minimum offer. I don’t really like that idea because I want to set expectations. If someone submits an offer, I want them to see that the price expectation is high.
The $100,000 figure is arbitrary. I could probably be okay to set it to $15,000 – $25,000 for the majority of my portfolio. However, for the handful of names that I ask 6 figures on, I wouldn’t want someone to think I am willing to sell for $25,000 if they submit an offer at the minimum.
I don’t know if this will impact leads and sales, so this is pretty much just a test for now. I don’t have a huge domain portfolio and never have had one, so I don’t foresee it being a problem.
I am interested in hearing how you deal with your portfolio minimum offer if you’d like to share your experience.