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?
Mark Thorpe says
Depends on the domain and the amount offered
I set a floor price on each of my domains.
But, everyone’s floor price is different.
Personally, I would die rather than take a lowballer offer. Seriously, I have been in position where I really could have done with the cash, and then along comes a lowballer offer. I refuse on point of principle. I am happy to wait 20 years for good offer and if not I will put domain in my casket .
Thanks for sharing your and Tony’s way of thought process.
There are many factors involved for each domain seller and it’s always good to learn and study from other’s experiences.
I bet godaddy loves the first approach…
Mark Thorpe says
@kemji My floor prices are not a few hundred dollars.
Thousands of dollars.
Puneet Agarwal says
Well in my opinion greed also plays a role . Some time ago i got 2 offers for moneyhawk.com for 500 usd n 750 usd , both from diff email ids. I rejected both of them n updated buy now for 5000 usd. On the seventh or 8th day it got purchased by the 3rd buyer.
If you have confidence in your names n they actually have value then you can get good prices.
If they are pigeon shit domains , one can even accept reg fee for them.
Depending on which domains, only accept because they pay the minimum that I have stipulated.
I’ve regretted not selling.
I’ve regretted selling.
Sometimes it is good to keep cashflow going.
Depending on the name I would take the offer if it’s a price I could live with and not kick myself later. Cash flow to add more names to your portfolio is always a good thing.
I always say NO and turn down all offers.
It gives me joy to think of business owners crying themselves to sleep at night because they can’t have MY domain that they need to make their business succeed.
Just Say NO.
@puddy do you turn down $1000K offers by any chance?