Eric Borgos had put the domain weights.com on auction at Flippa a few weeks back, the auction ended unsold. After the auction the domain was sold in a post auction negotiation for $36,500.
The domain was purchased in May of 2012 for $32,000. At the time time Mike Berkens wrote a post congratulating Eric on another great buy.
When I spoke to Eric he told me he sold the domain for a loss actually.
I am paying a 20% commission (10% to flippa, 5% to the primary broker, and 5% to a co-broker), and we added the escrow.com fee to the price, so my net is only $28,800 which is not so great, but at this point I have shopped it around enough to know that I probably won’t get that much higher for it, so I might as well sell it while I have a willing buyer. I think it is a great deal for the buyer though, since they plan to start a real business on it.
Eric as an experienced domain investor did what I think a lot of less experienced domain investors are not willing to do, and that is sell a domain for a loss. I have brokered many deals where the best offer was a five percent loss. The seller felt like he could not take a loss, I understand the frustration as no one wants to take a loss on a sale. I have felt that frustration personally.
No one wants to sell a stock for a loss either, but if selling at $37 is the right move for a stock heading to $26, you make the move. Of course domain investors don’t have a liquid market to see the value of their domain on a day in and day out basis.
All domain transactions are not profitable and if you have actually worked the name or had a professional work the name, you have to take a long hard look at whether there are better opportunities out there for the money tied up in the domain that you are selling. Experienced domain investors are more likely to make that call than those who are new to the business. We all hope this is not a frequent occurrence, but sometimes its the right move.