How do you respond to a $10,000 offer on a domain you’d be happy to get $5,000 (or less) for?

sold

So here’s an interesting question that I know all of us likely have a different answer to. First things first let me be a bit more clear than my headline. I’m not talking about a $10,000 offer on a domain you paid $25,000 for, I’m talking about a $10,000 offer on a domain name that you paid say maybe $500 for and would be happy to sell for $2,500 and $5,000 would be a slam dunk.

The point is. You got an offer that’s a lot higher than what you were looking for, so in your head you’re celebrating, doing a little dance, heck maybe you’re even starting to pop the champagne.

But wait.

The prospective buyer doesn’t know that this is more than what you were looking for. As we all know, the first offer a buyer makes is rarely at the top of their budget, so what do you do? Of course it’s not fair for me to ask a question without answering it so here’s my take. I usually aim for 2x or 3x the offer to see how they respond. If it turns out that’s too much, it’s easy to come back and say – okay let’s split the difference and still end up with a lot more than you were hoping to get.

While a similar scenario has happened to me a few times in the past (no it doesn’t happen to often, to me at least), it just happened to a friend of mine last week who came to me for advice. I told him to counter at $25k and see what happens. What would you do?

I want to hear from you, comment and let your voice be heard!

{ 10 comments… add one }

  • Todd March 26, 2018, 10:07 pm

    In the situation you described, I would reply to the offer:
    Hello,
    Although I am offering this domain for sale for $14,000, I will accept your offer of $10,000. Congratulations on getting a fantastic domain for a great price. You will receive an email from escrow.com that will provide you with a link so you can pay securely online with credit card, debit card or bank wire. I will stay in contact with you until the transfer is complete.
    Kind regards,
    Morgan

    Reply
  • Jamie March 26, 2018, 10:35 pm

    You’re a good guy Morgan. Now unblock me on Twitter. I was just joking.

    Reply
  • Zev March 27, 2018, 3:55 am

    Immediately sell , are you kidding ?

    Reply
  • JZ March 27, 2018, 3:57 am

    I’d still ask for more. It doesn’t matter to me if I paid reg fee. I’m always going to try and get the most I can.

    Reply
    • JZ March 27, 2018, 4:04 am

      Something like this recently happened to me. I got a 10k offer on a domain I paid 10 bucks for (plus renewals) several years ago with zero previous offers. Countered with 15k. They took it. Found out later on (they used anon email) they are a billion dollar company and are using the domain for their new name. I could of asked for 50k or more and they wouldn’t of blinked. Sure its good ROI but I’m still kicking myself for not countering higher.

      Reply
  • Matt March 27, 2018, 6:12 am

    Negotiations is always tricky. It depends on the quality of the domain name. ALWAYS check google and see if the domain name you are trying to sell is a new Hot trend that you don’t know about, or a new product of a company. If it comes back that they are just trying to acquire the domain then I always assume that their budget is 3-4 times their initial offer. Whichever way you choose to negotiate is up to you, but if you are selling to a company sometimes the relationship and repeat business is better than getting the most out of the single deal.

    Reply
  • Tom S March 27, 2018, 8:03 am

    I think it would depend on how many names you’ve sold recently. If you need the money or not. I recently got an offer on a name where it was double what I would have sold it for. As it turned out, it was below what he was willing to pay and I sold it for more than his original offer. I think I would ask for a higher price, just because the first offer is an entry point for negotiations. I don’t think I would go too much higher than the initial offer, especially if the seller was happy with the first offer. Being greedy sometimes backfires.

    Reply
  • Michael March 27, 2018, 9:50 am

    Since I am just a buyer of domain names and not a billion dollar company if I offered $10,000 for a domain that is what I am willing to buy it for right now. Your best next move is to send it to escrow! If you come back at me with a higher number I would just say I don’t have a $20,000 idea for that domain name and stop there. Then I would let you sit on it for a few months and come back at you with a lower price on a new email so you don’t know who I am, an try again haha If I get it I get it if I don’t, I don’t worry because their is so many great domain I can find to use.

    Reply
  • Jose March 27, 2018, 10:17 am

    First of all thank you Morgan for posting my comment after your moderation, in the post on http://www.efty.com/.

    The years pass and the offers equal, there is none that is good for who receives it, I answer thanks I am not interested.

    What bothers me most is those domainers that are first division that I offer a domain of 4 or 5 characters premium by email and I still await your response.

    In the end I have stopped offering domain names by email and I prefer that those who believe big domain names and that Rick domain king on twitter send me messages of encouragement giving me their support that what I have will succeed let time go by, and I give them to a Broker of my confidence.

    http://www.efty.com is the other market that will not let you lose, for sale BIN and you make offers if you see that the BIN is too high, then we will negotiate.

    Reply
  • Chris April 9, 2018, 12:21 pm

    I have accepted a number of such offers. Interestingly, often I never heard again from the buyer. It’s as if the acceptance made them feel they’d offered too much / it wasn’t worth what they’d offered, and so they changed their mind.

    Reply

Leave a Comment