20i Reseller Hosting

How to BUY a domain

Discussion in 'Business Discussions' started by webmango, Jan 27, 2016.

  1. webmango United Kingdom

    webmango Active Member

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    So there's plenty of advice on how to sell your domain for top dollar, but my question is about coming from the other side.

    What strategies/techniques are best for purchasing domains for the least amount possible?

    Submitting a realistic counter offer to a price is a good start of course, but what is a realistic counter offer?

    For a domain that has an asking price of £1000, where do you go in with your counter offer?

    How does that vary for domains with asking prices of £500, or £2000?

    Would you recommend a set formula? (i.e. go in at 25% of their asking price, and expect to pay 50%?).

    Are there any other techniques for success, or any particular no-no's that would lead to a non responder?

    Any statistics one can look at to help judge relative popularity and therefore price elasticity?

    Would be interested to hear the domainer's opinions of this.

    Thanks,
     
  2. Domain Forum

    Acorn Domains Elite Member

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    articles.co.uk
     
  3. Adam H

    Adam H Well-Known Member Exclusive Member

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    If the domain is listed on somewhere like Sedo I normally have a scout around to see if its listed anywhere else for different prices or indeed on a domain owners website. Cutting out Sedo fee's can often result in a better deal for both parties.

    It irritates the hell out of me if whois details are hidden on domains which are being sold too, I don't have a set formula though, I come in at a price i see as a reasonable value for what i need it for. If they gets rejected and i can see it still as a viable investment i might offer up to my Max after some back and forth with the owner, if it goes over my max then ill find an alternative.
     
  4. spiderspider

    spiderspider Active Member

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    The first and most important thing to remember is that a good portion of Brits are absolutely, totally and utterly shite at haggling.

    If something is advertised at 100, sellers expect offers of 97.50 to be a good haggle. This can be seen on places like Sedo, ebay, gumtree where the counter is normally just a tad below the asking price (or the asking price itself).

    As a buyer and seller in my day job, I get it all the time. Some people are brilliant at it, and would give the market traders at the Kuala Lumpa night markets a run for their money. Others have no idea. It irritates the hell out of me, as (excluding supermarkets and chains) I see most prices as a starting point. If you ever visit an antiques / reclamation place, the price tags are just there for show. No one pays that price. If they do, the dealers very happy :)

    My advice, make offer at 50% of asking price. If seller comes back 1% (or some other low figure) off, walk away. Seller is an idiot.

    If seller comes back with a 10% discount, you have a good starting point and know the seller is selling an in the mood to sell.
     
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  5. valerie7905 United Kingdom

    valerie7905 Member

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    godaddy auctions is a good place to start
     
  6. bonusmedia United Kingdom

    bonusmedia Well-Known Member

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    No set formula, depends entirely on the seller and the price - I've offered the asking price before when it's been reasonable, but if the asking is delusional I might well walk away immediately. 50% is not necessarily a good starting point, many sellers will double their initial asking price to achieve the price they actually want. Formulas only really work if the seller has a similar one.

    To get a good price, you should always be prepared to walk away (and lose the name!). If you need the domain so badly that you can't, you have to accept you could pay over the odds.

    I've just picked up a name I walked away from last month where the seller now needs a quick sale and took my initial offer.

    I normally have patience on my side - I've negotiated on and off for 3 years + on some deals. Many sellers will have a need to raise funds at some point over a period of years. Some large portfolio holders won't ever budge at all - you get to know who is worth trying and who prefers to hold forever :)

    Also I try to focus on the estimated value to the business, not on an unreliable guess at the resale value of the domain - though I have bought some because the price was low enough to virtually guarantee a return
     
  7. Edwin

    Edwin Well-Known Member Exclusive Member

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  8. accelerator United Kingdom

    accelerator Well-Known Member

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    A particular no-no is unrealistically low offers. That just tells the seller you are a chancer and tyre-kicker.