Why you should never ignore inbound offers on your domains, no matter how small

It’s a topic I’ve covered on my blog a few times in the past, but a solid tweet from Domain Shane yesterday inspired me to bring it up again. The point is a good one, here’s the tweet:

domain-offers

Shane is making a really good point here. Why would someone start high when making an offer on your domain name? It just doesn’t make sense. While the initial offer can tell you a bit about someone’s budget, i.e. if they offer $100 they probably don’t have an $750,000 budget for a domain, but they very well could have a $20,000 budget.

I’ve seen domain owners respond to inbound offers typically in one of two ways:

  1. Getting offending and responding with a negative email or no email at all
  2. Saying something simple like, “I’m sorry but your offer is too low, I’m looking for something in the $xx,xxx range”

Not surprisingly, approach #2 gets a lot more deals done than approach #1. Wayne Nelson jumped in to share his experience hopping on the phone with someone who made an $100 offer on one of this domains.

domain-name-negotiations

The fact of the matter here is that an old adage still rings true, people do business with people. If you treat people with respect, hear them out, and actually try to make a deal happen, you will sell more domains. If you let ego get in the way and think, “this jerk thinks my domain is only worth $100, screw them!” You’ll sell less domains. It really is that simple.

Thanks to Shane for bringing up this point. Now it’s your turn. I want to hear from you, comment and let your voice be heard!

{ 9 comments… add one }

  • John February 6, 2019, 7:34 am

    The reverse also applies. If a buyer offers $5k and the person holding the domain says they’re really looking for $250k, don’t just decide as the buyer that’s the end of it or that “we’re too far apart.” That’s a very big mistake.

    Reply
  • John February 6, 2019, 7:39 am

    Another one, and you know who you are: if you get an offer you consider too low and reply with an obnoxious little “No thanks,” not only are you a word I don’t want to say here, but you are making a mistake. Stop being such a baby and so rude. It’s called negotiation. It’s even called plain discussion.

    Reply
  • Undaunt February 6, 2019, 9:32 am

    A buyer started with high $$$ for a name I wont sell less than $$$$$ and I replied it was too low and expecting 5 figure offer.He told me to name my price after and I quoted and he offered close to mid 4 figures just yesterday and saying my price was too high and doesnt matter if name was popular or not .I told him thanks and not accepting. I Wont sell the name for less than 5 figures ,period as I also researched a brand related to cosmetics using that name and they sure fit my buyer .Low offer doesnt change my mood

    Reply
  • Don February 6, 2019, 11:45 am

    Good points. IMO you have to balance how many non replies your not getting because you made the original $100. If you make at least a $500 or $1000 offer then your CTR goes up drastically.

    Nothing wrong with that $100 offer if it is a shitty name. You also have to consider peoples time. If you want that name and your dealing with a private owner who is not a domainer then you can’t be cheap. Consider what the headline is in your email and how you will get the attention of the other party. Will $100 do it or $1000.

    And of course consider how many deals your losing because of the non-replies your getting. It really depends who your audience and the research that comes in before you even make a horrible offer to a private owner such as what other names they own or if they own a real business.

    Reply
  • Mike Carson February 6, 2019, 11:53 am

    I sometimes don’t reply to offers that are absurdly low because I feel like we will probably be too far apart and I don’t have much time to respond to every absurdly low offer I get.

    This is why it makes sense to offer a higher amount, to get the seller’s attention.

    Reply
  • Snoopy February 6, 2019, 12:10 pm

    Depends on the quality of name, some are just not worth replying to and you’ll waste a lot of time if you do. Mostly $50 means $50.

    For cheap names set a BIN, you don’t have to reply and they know the price.

    Reply
  • Scott Brady Alliy February 6, 2019, 1:45 pm

    A recent sale started with an offer of $500 and ended with a sale of $5000 10 times the end user brokers initial offer. So yes, if you’ve done your homework and know similar sales, the market, and hopefully the buyer then you have every right to counter with an offer greater then your desired price in order to leave some cushion for negotiation.

    But as your article correctly points out the initial offer no matter how small may be just a conversation starter so take all initial offers seriously until you can prove otherwise and have exhausted all means to progress your desired price.

    Reply
  • Eugene Fraxby February 6, 2019, 6:54 pm

    I was guilty of this and lowball offers do still get under my skin. However last year I ended up selling a domain that I was planning on dropping for about $1300 after the buyer had originally offered $50. It did help that I was able to find out who he was from his email address and from that info he seemed like a genuine end user buyer.

    Reply
  • Alex Verdea February 7, 2019, 5:26 pm

    1. I always reply to all inquiries.
    2. I always initiate the deal and offer pricing. I am never interested in offers.
    3.I always keep it professional, I built a bit of a backbone and thick skin over the years…

    Anyhow if you don’t have some “Always” in your life, you end up with nevers.

    Reply

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