I think the 2nd biggest problem in this market is irrational pricing by sellers. I was just discussing an example today of a seller who rejected my own offer of hundreds for a domain and then let it drop rather than pay to renew it. I don't understand this behavior. Domains are not lotto tickets. We started addressing this problem with a ranking that rewards reasonable prices - better values get more exposure.
But I don't agree about the desire of offers far below what the seller would entertain. While it does provide some information (and that's why I use to agree with you), it also wastes both people's time and that concern is more important to me now.
Now I encourage sellers to use "or best offer" pricing. Set the starting offer and the reserve to what you will accept for the domain so that the first offer will meet reserve. We reward commitments to sell in our rankings and we display "Next offer" for the "reserved met" status to make sure buyers know the negotiation will be immediate on such listings. We also show listings that have met reserve maximum exposure (on the home page and on every parked page). One more trick: OBO prices are matched as well as asking prices by the price range in the advanced search.






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