There are a couple of philosophies.
One of the toughest challenges for domain owners is knowing when to accept an offer.
There are generally two schools of thought on this. One is to take the best offer you can get out of the buyer you have on the line. A bird in the hand is worth two in the bush.
The other is to hold out for top dollar and not be afraid to wait for another buyer to come along.
One person who falls into the first camp is @TonyNames on Twitter. He routinely tweets about taking the money now, even if it’s less than you hoped, and cycling it back into more domains.
Today, he tweeted:
I think Tony’s philosophy is best for most domain investors, especially when you’re talking about average domains.
I look at each situation based on the limited data I have.
If I’ve owned a domain for five years and this is the first person to come knocking, I will try to work with them, even if it’s for less money than I’d like.
If I just acquired the domain, I will hold out a bit. The best names are ones that get 2-3 offers a year. You know that eventually, someone is going to meet your price.
Of course, you don’t know you’ll get 2-3 offers until you’ve turned down the first offer.
You should also think about how far off from your desired price you are. Many times, I’ve turned down $5k and gotten $8k, but it took several years to get the extra amount. Was it worth the wait? What could I have done cycling that money back into other domains in the meantime? Or cycling the money into something else?