OFFERS FreeEnergy.ca (1.Viewing)

Hi y'all,

Just getting started into domaining, got an offer on dan but don't know if its a good price.

Welcome aboard

What was your offer, what are you thinking of asking?

Started at 1k US he countered with 125, i'd let it go for 500

The part that harms that domain is the triple eee

Spelled FreeEnergy.ca it looks great, but as soon as you put it in the address bar it becomes freeenergy.ca and in my opinion makes it take a hit.

Nobody makes money on Free so chances are you are not going to get a ton of money for it so your instinct of $500 would be correct.

All that said if someone sells a device that makes energy, and he makes money selling that device, then the domain could have a higher value to the end user.

It's always a gamble but if it were mine I would stand firm at $500 and see where it goes.

It depends on how desperate you are and the domain name. However, in my opinion, domains should be priced for business use and you shouldn't invest in any domain unless you think it is perfect for business use. And if any buyer isnt willing to spend at least $5k on their brand/domain name, then they’ve got a hobby, not a real business. So if you want to sell domains to hobbyists, then you also have a hobby and will remain a hobby.

Know your buyer before you negotiate anything. Here are some possibilities:

Free Energy, Golden BC - solar company

Free Energy bringing affordable solar panels to Golden residents - The Golden Star

Alberta:
winfreeenergy.ca

here is more ammunition for you:

https://ca.godaddy.com/domain-value-appraisal/appraisal/?domainToCheck=freeenergy.ca

https://graen.com/free-domain-valuation?domain=freeenergy.ca

https://pc.domains/basic/freeenergy.ca

Since you've already given a price, stick to it. Show these valuations to justify that you're already offered a very fair price.

Thank you for the tips!

Justanewbie said:

Thank you for the tips!

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Let us know how it works out!

Justanewbie said:

Started at 1k US he countered with 125, i'd let it go for 500

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Unless you're currently destitute and living on the street, I would revoke that $1K offer and just start over.

That was your mistake, coming in too low and now the potential buyer thinks you're a rube with a few pennies in your pocket, hence the insulting $125 counter. I'd revoke the original $1K offer and just ignore him. If he's a serious buyer he'll be back, otherwise you don't need him.

Never buy a domain that a) you don't think is worth at least $5,000 to a buyer and b) you aren't prepared to hold for a minimum of 5 years.

P.S. And listen to what RLM says and learn - he knows more about selling domains than the rest of us have forgotten.

Well I wouldn't revoke the offer simply because I'd like to be a man of my word. However, you can set a time limit that the offer is valid for, and after which the price will be going up.

rlm said:

Well I wouldn't revoke the offer simply because I'd like to be a man of my word. However, you can set a time limit that the offer is valid for, and after which the price will be going up.

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Sure, that's the right way to do it, but if I get a lowball counter like $125 all bets are off, as that is extremely insulting. You rightly say that if a business doesn't have $5K for a domain, then they're not a business and are a hobby - what is someone counter-offering $125, a wet cardboard box?

Even a hand-reg domain has a break-even price of around $700, assuming a 2% STR, and that's net.

DomainRecap said:

P.S. And listen to what RLM says and learn - he knows more about selling domains than the rest of us have forgotten.

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What works for me though may not work for everyone. I am patient and have a large portfolio leading to more and larger sales. For a newbie, what might be a better strategy is to work hard to build their portfolio. So don't take profits, always think in terms of trading up. So if you sell a domain, make sure you get enough to go and buy more domains of better quality than the one you are selling, and have enough left over to renew the new domains for a few years. This way you can grow your portfolio at essentially no cost to you. But be sure you know what it is going to cost you to acquire those new domains so you can know what you're willing to accept for a sale.

Always think about the fact that if you sell a domain, you need to replace it in your inventory, and it takes time, effort and cash to do that. And then you should make a profit on top of that, or, significantly grow your portfolio. Add all of that into your pricing.

DomainRecap said:

Sure, that's the right way to do it, but if I get a lowball counter like $125 all bets are off, as that is extremely insulting. You rightly say that if a business doesn't have $5K for a domain, then they're not a business and are a hobby - what is someone counter-offering $125, a wet cardboard box?

Even a hand-reg domain has a break-even price of around $700, assuming a 2% STR, and that's net.

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I can't disagree with any of that, but I try to be a man of my word.

rlm said:

What works for me though may not work for everyone.

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I meant generally, as not everyone has the moxie or bank account to be asking 5-6-figures for their domains.

Your "know your buyer" mantra is a good one, as you need to assume that each offer is from the top potential buyer in the group and price accordingly. Most will bail, but when you hit that mark, the proceeds will easily outpace all the other offers combined.

Basically, any domain investor should work towards the goal of making their money off the cream.