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Yesterday Before Midnight I Turned Down $25 In Offers; Domaining Can Be Like No Deal Or No Deal

Tuesday, April 12, 2011
By admin

 

Excuse the tongue in cheek parody. I read with interest Michael Berken’s post and you know what, best of luck to him. Michael not only has one hell of a domain portfolio but he has a consistent track record of high profile sales. From a position of strength Michael has the luxury (hard earned no doubt) of taking or leaving offers received. As such Michael has to be a honourary member of the "Elite Domainers Club" Why should he undersell - as he sees it -  his properties? Even if others in this Business would literally exhange a limb for 10% of the sums Michael mentioned in his recent blog post.

I don’t know Michael that well but we did broker a small sale for him (relative to Michael) a few months back for $32,000 and all I can say is the best of luck to him. I am sure he will be reporting many more impressive sales over the weeks/months and years ahead.

How about the other 99.8% of Domain traders? As for me I have a modest portfolio as I am very much in the main a domain broker. I only own circa 400 domains, many of which I would consider only worth in the region of $2 k - $5 k each to a motivated end user. I do not own any domains even remotely in Michael’s league so my price expectations are much more realistic (relative to me) If I was to liquidate these 400 today to the reseller community I figure a realistic price would be just $30,000 - $40,000.

Luckily brokerage brings in most of my income. As such I have some leverage re trying to maximise my occasional end user sales. What if you do not have "any other income" how would you handle an offer in the $500 - $1 k range.

Taking the money and running is a definite option as is digging in your heels and countering with a crazy counter price. In my experience of selling my own names the vast majority of end users run if a counter offer exceeds their opening offer by say a factor of three times their opening bid. It’s well known in this community of ours how rare it is for an end user to see the "true value of a domain name" Many almost look on domain names as a luxury item (rather than, as we all know too well, a necessity for any serious Business)

Folks all over the World pay crazy prices for private car/auto registration plates, now there is a true "luxury item" Discounting the resale potential some of these plates have, most purchases of such private plates are crazy in terms of a "Business Investment" In other words they are a vanity purchase in the main. Domain names are far more than private reg plates could ever be, it’s just that the rest of the World still has to catch up. Sure, many Businesses and Investors already "get it" and it’s these early adopters that will flourish. The Internet is still a babe in arms,it’s going to be a very interesting ride over the next 5/10/20/25 years etc.

If you are in buying mode / or even just window shopping mode right now check out our Featured Premium Domain Auction which is closing within the next 30 hrs or so on Bido.  

 

thanks for reading,

Andy Kelly

C.O.O Namecake

C.E.O UpMarketURLs

 

 



7 Comments »

  1. by Maurice McCrickerd |  April 12, 2011, 7:48 pm  

    I love the headline, it sure caught my eye, bottom feeders like me regularly accept $25 offers. For offers like 100 k a man can but dream

  2. by admin |  April 12, 2011, 7:55 pm  

    I hand reg most of my own domains. I’ll never sell one of mine for anything like $20 k plus but even a $1 k sale for a $9 investment isn’t a bad return.

  3. by Max Welsh |  April 12, 2011, 8:40 pm  

    I’m new to domain names. I found domaining.com literally today on google. I have this bad feeling im already hooked. Thanks for your words,and thanks for sharing your experience.

  4. by Anthony David |  April 12, 2011, 8:50 pm  

    Love the headline and good insights too.

  5. by chris |  April 12, 2011, 9:45 pm  

    Very funny post - your title made me check out your site and contact the brokers you mentioned.

  6. by Tom |  April 12, 2011, 10:06 pm  

    Enjoyed your piece, and had previously read (and liked) Michael Berkens’ post as well, so your headline made me chuckle before I ever clicked through.

  7. by lee |  April 13, 2011, 2:44 pm  

    He maybe have a good protfolio, but that sort of strategy in many other businesses sees you fall on your backside.

    Good job he isn’t trading stocks. “Oh but Apple went up 60%, so I am holding these for similar sort of gains”..

    Greed gets the better of most in business. Set yourself a target. Do you want 100% - 200% on what you paid or what? When you hit it (or near it), take the profit and move onto other stuff.

    Just in the same way as if you were holding a stock with gains on paper. A profit is not a profit until it’s banked, and many things can change in this business..

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