It has been weeks since I began the negotiations on a four letter domain I found at Sedo. The name, WINY.com, is a dictionary word, CVCV combination where the second ‘vowel’ is a ‘Y’. I made an offer of $150 on the 1st of January this year for which the owner countered with what seemed at the time a pretty reasonable $2200. Negotiations continued for a week or so and I gradually reached a price I felt happy to buy at. I even had development plans for the name… After I had successfully negotiated the price right down to $1400 I felt that I could obtain one final reduction in price and snap the name up for $1200. Unfortunately for me this wasn’t the case and at $1200 the owner put the name to auction.
This was the worst thing that could happen because it meant that if the name was worth more in the eyes of other domainers, investors or end users they have an opportunity to outbid me. This is exactly what happened.
I can’t help but think and regret that if I had only been willing to follow my gut instinct and pay the extra $200 I could have turned a massive profit on just one four letter domain in under a week. The name sold today for $3650…
My advice to anyone is to trust your better judgement and never doubt yourself if you feel sure a good deal is infact a great deal!
3 Responses to “The one that got away…”
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January 24th, 2008 at 12:12 pm
Look my advice is either way this guy knew it was worth more than $1400 that’s why he had it on offer only, he was just testing the water like when you go fishing.
He got a couple of bites than he put the big bait on to catch the bigger fish.
To make you feel better it was going to go at around $3k+ whether you liked it or not.
Sedo is full of sharks anyway, the guys on there are very experienced and know how to play the game, even if they seem like they dont at first. It’s their trick
January 24th, 2008 at 12:35 pm
I’ve learnt the hard way when it comes to domains - if you’re buying… buy immediately. If you search for available domains, be prepared to register the domains immediately.
This is only one that got away, I have a full sheet in my xls for stuff I didn’t get - more to keep a track of offer/purchase price if and when I come across them again.
And when it comes to buying valuable domains, bargaining is sometimes counter - productive, i bid on a domain last year $100, owner wanted $450. Cut to three months later, I opened at $300 - his asking price is now $900 - not open to offers.
Que Sera Sera
But then, with so many fish, in so many varieties in the sea, maybe you’d be better off moving onto the next one…
Like reading QLD… thanks and good luck!!
January 24th, 2008 at 1:39 pm
Thanks for the replies!
Dan – I think you missed my point, I knew it was worth more and would have sold for $3k+ but I could have accepted the domain for $1400 if I had only accepted the increase on my offer of $200. I could have then sent the domain to auction a few weeks later once I had ownership and reaped the rewards!
This isn’t by any means the first time this has happened to me, it has happened plenty of times, I thought this would make an interesting story though
I hope it did!
Mwzd - Some very good points. The domain marketplace is one of those markets where negotiation is key to its survival; there are no fixed costs, no fixed prices. Another I missed yesterday - YIPY.com… the margin was even bigger on this one. In any case I have negotiated and won some very nice names on Sedo in the past and as you say, some you win, some you lose.
Thanks for the comments, it makes writing the blog so much more enjoyable to write when you get feedback!
Rich