advice $20k offer from GoDaddy broker for my domain, what next?

[Digross]

I received an offer from a broker at GoDaddy for my domain, for $20k. Some calculators value it at about $35,000. The site itself has no hits, so that's not the value. How on earth should I proceed, given that I don't want to spend a lot of time on this? I don't think there is a lot of solid information to be found that would influence my decision. Suggestions?

 

[Digross]

since u say u arent domainer let me tell u the biggest mistake most make... its overpricing domains thinking they are worlds biggest diamond. u will never get 250k for this domain. and I dont mean just for this offer. everyone here will tell u this. gl

Yeah, I really don't believe I'll get 250k for the domain ... I'm not making a real investment decision ... but I've been proven wrong before in big ways!

 

[bmugford]

No matter how many times they put the screws into you, you can just keep not biting the hook.

I agree with this mindset.

It's your domain, and you can do as you please with it.

In these type of situations I will basically just say something like I don't have a set asking price, but the offer is not compelling.

If they would like to make a stronger offer, I will consider it.

The actual valuation of this domain and likelihood of getting it is another discussion.

Brad

 

[bmugford]

In my opinion, this domain is better after research than it appears at first glance.

Brad

 

[homebuyer]

In my opinion, this domain is better after research than it appears at first glance.

Brad

If a domain looks more valuable after some research but only appeals to a small group of buyers, it might be hard to find another buyer later. So, if you’ve been offered $20k for it, you might want to consider taking the offer, as it could be tough to sell it for that amount again in the future.

 

[Yanosh]

It depends on what you wanna do with the domain.
If you want it to keep running your business and you don’t care about the money , shoot a huge amount
( I would not go with 250k , too much)

If you don’t have a specific use for the domain , sell it and get the money.
I would probably make a 4X on their initial offer.

More important : it’s always good to listen other opinions but you should do what you want to do.
If you were wrong , at least you did it your way.
Good Luck!

 

[bmugford]

If a domain looks more valuable after some research but only appeals to a small group of buyers, it might be hard to find another buyer later. So, if you’ve been offered $20k for it, you might want to consider taking the offer, as it could be tough to sell it for that amount again in the future.

Sometimes not knowing the value of a term is on the person evaluating it.

There are many terms and fields that I know nothing about. Just because I am not aware of something doesn't make it less valuable.

Also, every domain is one of a kind so you only need one buyer. It would be different if you were selling many of the same thing.

In this case, if someone is interested in the term, there is really no substitute for this domain.

Brad

 

[homebuyer]

Sometimes not knowing the value of a term is on the person evaluating it.

There are many terms and fields that I know nothing about. Just because I am not aware of something doesn't make it less valuable.

Also, every domain is one of a kind so you only need one buyer. It would be different if you were selling many of the same thing.

In this case, if someone is interested in the term, there is really no substitute for this domain.

Brad

I agree that domain names can be very valuable and unique, and just because someone isn't familiar with a term doesn't mean it lacks value. However, in the case of '*******.com,' not many people, including domainers, might know what '*******' means. This could make it harder to find a buyer who understands its value and is willing to pay a high price.

 

[alcy]

Sometimes not knowing the value of a term is on the person evaluating it.

There are many terms and fields that I know nothing about. Just because I am not aware of something doesn't make it less valuable.

Also, every domain is one of a kind so you only need one buyer. It would be different if you were selling many of the same thing.

In this case, if someone is interested in the term, there is really no substitute for this domain.

Brad

well nobody knows everyting about everything so it just boils down to common terms.. less common.. uncommon .. this one is in the latter... so it's not about u or me not knowing the term but about 99percent world population not knowing it... which leaves your odds of selling super low. and then u make them even lower by asking more. or u make odds impossible by asking 250k.

 

[DrJacoby]

@homebuyer Remove the domain name from your last post! It will get indexed in Google.

 

[Chris Hydrick]

However, in the case of '*******.com,' not many people, including domainers

@homebuyer -- Out of respect to the domain owner, everybody in this thread including OP has been breaking up mimetic and .com so the domain/this thread isn't easily cached in search engines.

I believe that's the first time the full domain name has been mentioned in this thread without obfuscation.

 

[homebuyer]

@homebuyer Remove the domain name from your last post! It will get indexed in Google

Domain name replaced with *******.

 

[homebuyer]

well nobody knows everyting about everything so it just boils down to common terms.. less common.. uncommon .. this one is in the latter... so it's not about u or me not knowing the term but about 99percent world population not knowing it... which leaves your odds of selling super low. and then u make them even lower by asking more. or u make odds impossible by asking 250k.

You nailed it.

 

[homebuyer]

Revised the lyrics to

song to fit domaining: “Take the Money and Run” is a song recorded in 1976 by the Steve Miller Band.

[Verse 1]
This here's a story 'bout a domain and a chance
An offer on the table for twenty grand, and it’s a dance
The keyword’s obscure, not many know the name
But here's the story if you’re looking to make a claim
You’ve got the domain, and it’s worth a lot
But finding a buyer might be a tricky shot
The offer's on the table, and it might be your turn
To get a good deal before the chance is burned

[Chorus]
Go on, take the money and run
Go on, take the money and run
Hoo hoo hoo
Go on, take the money and run
Go on, take the money and run
Hoo hoo hoo

[Verse 2]
The domain’s unique, but it’s not so well-known
Finding a buyer might be like hunting a stone
You’ve got the offer now, and it’s quite a prize
If you don’t take it soon, you might face a surprise
So if you’re thinking about it, don’t let it slip away
This offer could be golden, a great deal today
The domain has potential, but the risks are real
So go on, take the money, and seal the deal

[Chorus]
Go on, take the money and run
Go on, take the money and run
Hoo hoo hoo
Go on, take the money and run
Go on, take the money and run
Hoo hoo hoo

[Chorus]
Yeah, yeah
Go on, take the money and run (Yeah, yeah)
Hoo hoo hoo
Go on, take the money and run, oh Lord
Go on, take the money and run (Yeah, yeah)
Hoo hoo hoo
Go on, take the money and run, oh Lord

 

[Digross]

I cancelled the negotiations. Story over ... for now!

 

[vincew]

I don't think I ever saw the word before, reminds me of the word m****graph from years ago.

Given the definition, it's the kind of word that a big business could conceivably pay 6 figures for, best case scenario.

Good luck with it.

 

[scithe]

You can always sign up for Sedo, Afternic and Dan and list the domain there with make offers, while still using the website as you have been. You can set minimum offers so that you aren't getting hit with spam and lowball offers.

 

[Dandelion]

Yeah, I really don't believe I'll get 250k for the domain ... I'm not making a real investment decision ... but I've been proven wrong before in big ways!

I think the whole thing boils down to you not knowing the value of what you have. Some guys here like @Bannen and @bmugford have done a great job in trying to let you see the value of your asset and you should take their advice and suggestions for it. Forget about others who are trying to play down the value or trying to let you see the reasons you should take 20k. They are not getting the point. There's absolutely no reason in this scenario to take the opening offer, and it's not as if you're in desperate need of quick money. Put it in the marketplace and wait for the right offer.

 

[Digross]

This is an excellent forum, I must say. Even with differing opinions, everyone argues cleary and respectfully. I’m very impressed.

 

[Future Sensors]

This is an excellent forum, I must say. Even with differing opinions, everyone argues cleary and respectfully. I’m very impressed.

Nice to have you here @Digross. I hope you will find a lot of useful information in other threads as well, and can possibly contribute with your background as an entrepreneur in a field other than domain investing. Enjoy.

 

[SixFigures.ltd]

$20k offer from GoDaddy broker for my domain, what next?

Party hard I guess

 

[scithe]

WOOSH

 

[NameBuyer.com]

I cancelled the negotiations. Story over ... for now!

Best decision you could have made. Some of the best advice from the DomainKing is to not make an offer until they are in your range. I think that really becomes key, because it creates a recursive psychological condition where they incrementally test what you are looking for, while at the same time changing their Reserve Price for the domain.

Update: Broker says buyer can pay more, but first wants a firm price from me. Following advice here, I will either propose something closer to $250k, or simply refuse.
I suspect there are calculations to be made. For example, one could assign a value that is a multiplier of the number of Google searches for the term. Or guess that the domain would be used in the Google or Perplexity.com is used, and value the simplicity of the term.

The value goes beyond the advertising value (hit count) of course. The image matters, too (I used to do design).

Other comparisons. A big company pays more $100k for a corporate logo/image package. They pay $350k for an engineer for a year.

How to price such an intangible?

I've liked GoDaddy over the years and my opinion of their brokers in the past was very high. I'm not sure if something has changed overall, but much of what I've received lately is very mediocre and not like I've seen in years past from broker interactions. In most cases like this, I'll respond to the broker and will never hear anything back from the broker, not a "thank you", confirmation or anything. It's like I never responded to them.

Then they take all the information that you would have received from the transaction and disappear.

So my advice would be to fully take your interactions into your own hands and put an email address on your page or a reliable contact form with a database backup in case the form stops working for some reason.

The broker has replied, saying that getting a 6-figure offer on a domain name is rare for a domain name like this. He pointed to some estimated values, from $6,500 up to $16,000. Then he asked how much I want to sell for.

I thanked him for his advice, and said I would wait until the domain was more valuable.

This is exactly why you don't want communications going through their broker. The broker is only on the side of the buyer even if you have an existing relationship with GoDaddy/Afternic. You have no control over how skilled or experienced that broker is going to be. The last broker that contacted me was an artist and 5 other things first, and also did domain support according to his LinkedIn page. This is not who I want handling my negotiations.

Yeah, I really don't believe I'll get 250k for the domain ... I'm not making a real investment decision ... but I've been proven wrong before in big ways!

After 2 low five-figure "buy now" sales around 2023 I decided I'm never going to price for these types of sales again. Why? Because you are usually selling a domain that can be very valuable to the right company for a small amount. While some people on the forum might not consider $xx,xxx to be a small amount, in terms of what it is worth to the right company it is a small amount in regards to what they are paying for buildings, employees, and operating expenses.

Both of my sales in 1 year were to companies with $100 Million to $1 Billion or more in annual sales. And both are using my name as their main domain.

So in a case where a company 100% needs your domain to fulfill their new plans, and they have sales of $100 Million per year, what is the domain worth to that company? People talk about the intrinsic value of a domain and how popular a term is, but that only matters when buying a domain for resale. When an end-user with end-user plans comes, the only thing that matters is their need for the domain.

In a case where a company has $1 Billion or more in sales, giving you $1 million for a domain that is going to represent all of their business operations is nothing to their overall costs.

So personally, for me without knowing anything about the buyer I'd price it at $500k to $1 million and if you receive information to see they are much smaller, then I'd decide to either adjust downward, or instead offer an equity and/or exit option that would allow them to purchase for less up front.


1st Company (formerly GSoft)

2nd Company

 

[scithe]

Those two names sound cool but I don't know that either command 6-7 figures.

Domains are e-real estate. If I have an acre of land and I want 50k for it then it shouldn't matter if Mom and Pop are buying to build a diner or if it's going to be a Starbucks.

Maybe I just don't know what I am talking about because I haven't sold any domains in the 5 figure range.

 

[NameBuyer.com]

Those two names sound cool but I don't know that either command 6-7 figures.

This is what I was talking about in the statement below. It doesn't matter at all what a domain investor thinks a domain is worth other than for the wholesale value of a domain.

When an end-user with end-user plans comes, the only thing that matters is their need for the domain.

So in a case where a company 100% needs your domain to fulfill their new plans, and they have sales of $100 Million per year, what is the domain worth to that company? People talk about the intrinsic value of a domain and how popular a term is, but that only matters when buying a domain for resale. When an end-user with end-user plans comes, the only thing that matters is their need for the domain.

There is an Objective Price and Subjective Price to every domain. The only thing you can estimate beforehand is an Objective Price. If you price based on this alone, you are leaving all the value of the Subjective Price on the table.

I spent years getting NameWorth to come up with a perfect price. But this is impossible in it's current state because all it is currently giving is an Objective Price.

The Subjective Price comes down to the customers needs, not anything to do with the domain quality. This leads into what the DomainKing suggests below. Note, none of the items he is pointing out has to do with the domain name. Not one. They all have to do with the company that has now chosen that brand.

 

[NameBuyer.com]

Domains are e-real estate.

I don't think I'd consider them as this. e-real estate is more like server space or something less unique than a domain.

In real estate I could buy something in the neighborhood across town almost exactly the same. But not true with a domain.

You are selling a brand and a world headquarters, especially now that things are even more remote than ever before. There is no exact replacement to that brand, only alternatives. Alternatives that are better and worse. For the ideal name, most companies that are $100M+ are not going to change all their plans based on a $1M price tag.