Tuesday, July 31, 2012

A Recent Domain Offer I Liked, and Why

DomainReport.ca

In mid-July I received an email offer for a five letter, pronouncable .com I hand registered about 5 years ago.  Back then I had hand registered a group of short, pronouncable .com's because I thought they were brandable type names, and that short .com's like this would become more in demand over time.  Plus, I was able to use them for email addresses and to point to different webpages I created, almost like a short re-direct.

This particular domain was listed in various domain aftermarkets with a minimum offer amount of around $2500, and on Godaddy premium names with a BIN of around $5000.  I don't know if the person making the offer ever saw this name listed in one of those places, because their initial contact was by email.

Here is how their offer was made:

-------------------
RE: Acquiring Domain Name (xxxxx.com)


I understand that you are the owner the domain: xxxxx.com and I am interested in purchasing the domain from you for $xxxx.

Please let me know if you are in a position to transfer in the proposed amount.

Feel free to contact me by phone or email.

-------------------

The footer of the email included the person's name, position, phone number, business name, and website.

Why did I like this offer?

- The email header was clear, to the point, and listed the domain.

- The email message was direct with a clear intention to purchase, and included an offer amount in the low to mid xxxx range (above my minimum offer in the aftermarket, but below my BIN, a reasonable place to start).

- They were willing to deal by email or phone.

- They included contact information.

When so many offers get made anonymously, and often without an offer (or an offer that is ridiculously low), it was refreshing to receive one like this.  Much of the time, offers come from a free email account, you don't know if the person is using their real name or not, and it's not uncommon for potential buyers to disappear once you give a price.  Not even a negotiation.

It would be nice if all offers came in like this, in a transparent manner with a reasonable price, but it's not going to happen.  Big companies or well-known buyers who are after domains likely don't want to tip their hand, and some sellers can choose to hold out for the highest price (which may or may not be reasonable).  But I thought it was worth pointing out one transaction that seemed to work out perfectly, and show that it does happen.

This offer did end in a sale (for a little higher than the initial offer), and has already gone through escrow.com.


3 comments:

  1. Interesting- I'll keep that in mind as I sometimes email domain owners seeking to buy a domain they own. I've had mixed results, sometimes they respond and we talk about the price, other times I never hear from them so I'm not sure if they even received the offer.

    ReplyDelete
  2. if you'd like more offers to come in like that, you should just take the first offer then... but it's such a domain seller cultural ego problem to try to negotiate. hard to change an entire industry of egos that want to walk away from a deal thinking they were the most amazing negotiators in the world!

    i've made decent REAL offers on domains from our real contact info for 10-50K and the sellers want 150K then.

    then years later i start the offer at 350 bucks anonymously and they sell it to me for 5-10K. just so stupid.

    ReplyDelete

Thank you!