Do you respond to all offers on your domains or is there a magic number someone has to hit to get a response?

One thing you learn pretty quickly as a domain investor is that most of the inbound offers you get are for a lot less than you’d be willing to accept. The reality is, most people have no idea how much domain names sell for so they really have no concept of what a “reasonable” offer actually is.

A few years ago I brokered the $850,000 sale of a 2L .COM. The sale went to someone who made an inbound offer that started at $500,000 and went up from there. What I thought was so interesting (and still find interesting) is that over the course of the time I was fielding inbounds, I’d say the average offer price I got was $500. When I would respond and tell people that we’re only accepting offers in the high six-figure range…well let’s just say I got some interesting responses.

For me personally, I understand that there is a disconnect. Unlike real estate where people have a pretty clear understanding of how to estimate price, the domain name world is a mysterious and mercurial place to most people. I’m a big fan of treating other people how I’d like to be treated which means, no matter how low an offer is, I usually respond.

At the same time, I’m not getting hundreds of inbound inquiries a day so for me, responding to every inbound I get isn’t a huge time sync. I know some people who have thousands or tens of thousands of domains and for them it’s just not realistic to respond to every offer, so they need to have some kind of cut off.

Then there are people who don’t get too many inbounds but just find themselves getting offended by low offers so they either don’t respond or they respond with a mean email back. I always think that sending any negative email back to a potential buyer is a bad move since you never really know what someone’s true budget is. I’ve heard of people starting with a $500 offer and ending with a $50,000 sale so the reality is – anything is possible.

At the same time, like I said above, I like to treat people how I would like to be treated so it’s just not in my nature to send a nasty email back to someone that puts a low-ball offer in on one of my names. I’d rather try to help them understand more about the value of domain names and what an incredible asset they can be. I often refer people to places like DNJournal and NameBio so they can see examples of what similar domains are selling for and get a feel for true market values.

But that’s just me.

Now is where you come in. When you get an inbound offer on your domains, is there a bar you set where if the offer is below a certain number you just don’t respond? I want to hear from you, comment and let your voice be heard!

{ 11 comments… add one }

  • John July 5, 2019, 1:04 pm

    If someone is going to be evil about it then direct them to this:

    https://www.youtube.com/watch?v=Xpugp6DIb3I

    Reply
    • Ethan July 5, 2019, 5:10 pm

      That would instantly ruin a broker’s professionalism, in my opinion.

      Reply
      • John July 6, 2019, 6:01 pm

        LOL, who’s talking brokers? Sure, let brokers remain “professional.” I’m just a person. And remember it’s just for when they become “evil” about it.

        Reply
  • Braden Pollock July 5, 2019, 5:27 pm

    Most inquiries are for 6-figure names and include no offer. I reply using a template (via Uni CRM) and 99.9% of the time I get no response. If I get a $25 offer, I typically just delete it since they clearly will never be a buyer.

    Reply
    • RaTHeaD July 6, 2019, 4:34 am

      one time i got a $25 offer on a name and ended up selling it for five figures. and so it goes.

      Reply
      • Braden Pollock July 6, 2019, 8:44 am

        Certainly a $25 offer can be pushed to a sub-$2500 sale. But I can’t imagine that a $25 offer would result in a $350,000 sale. If the budget is there, the buyer will reach out again.

        Reply
  • Bob Parry July 6, 2019, 3:07 am

    Quite true that most people just don’t realise or understand the real values of domain names, hence I have now started using $50 Minimum Offer with Sedo Offer Pages for selected one or two-word .COM domains in the hope of getting more credible sales in a relatively short period. Once this minimum offer is received the domain is then put up for Sedo 7-day Marketplace Auction at no cost but now only $20 minimum commission on sale, using the original offer as the reserve price!

    Reply
  • Nuwa July 6, 2019, 4:19 am

    At the same time, like I said above, I like to treat people how I would like to be treated so it’s just not in my nature to send a nasty email back to someone that puts a low-ball offer in on one of my names. I’d rather try to help them understand more about the value of domain names and what an incredible asset they can be. I often refer people to places like DNJournal and NameBio so they can see examples of what similar domains are selling for and get a feel for true market values
    —–
    If I may?.. Would you mind sharing that reply email template to low ball offers? I’ll be grateful. Thanks in advance.

    Reply
  • Paul Kapschock July 6, 2019, 5:26 am

    Regardless of offer, I started asking buyers why they want the domain name and how they intend to use it. Believe it or not, almost everyone replies in some fashion and no real negative responses, so far. Most times they are startups.

    I have approx. 1500 names and get 2-3-4 inquiries per day, so no biggie responding to inquiries. Now, if I got hundreds of inquiries per day, you would have to vet them quickly and probably not respond to $10 offers.

    I also have a $800 minimum offer, so that keeps down the $10 offers.

    See you in Asheville!

    Paul

    Reply
  • Jason Eisler July 6, 2019, 7:09 pm

    I personally and DNAdvisor.com respond to every offer the same way…. taking the time to thank them for their interest and inquiry and then asking them to increase their offer if their seriously interested 75% of the time.

    Reply
  • Leonard Britt July 7, 2019, 3:58 pm

    Most of my names have BIN prices but some higher-end names have minimum offer prices. Several days ago I received a $5k offer on a two-word .Com. Normally I would respond even though I would like to sell higher for this particular name. However, in the contact form, the potential buyer did not provide a name but provided in my view an immature handle and email address which made it appear to be a spam submission from a teenager who considers filling out such forms as similar to playing video games. So if he thinks he is playing video games, I am not responding as the contact is not approaching the negotiation in a professional manner.

    Reply

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