A company wants to buy my domain

13 years ago

Don't you wish you bought Google.com or Facebook.com 8) You are in a better place then they are because you don't NEED to sell as they NEED to buy it. I say you think of a number you want double it and throw it out there. See that they say

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fluffythewondercat 13 years ago

Don't you wish you bought Google.com or Facebook.com

That would have been truly prescient. And right after I bought those domains, I'd buy a lottery ticket with the correct numbers. And as much Apple stock as I could afford.

But how far-seeing would you have had to be then to buy sex.com, money.com, business.com, travel.com... My only excuse is when us ARPAnet/USENET types made the transition to the Web, we weren't sure the TLD name space wasn't going to be superseded by something else real soon. There was only one registrar. And domain registration was expensive back then, too.

fLufF
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Palusko

13 years ago

The thing is, that the domain may not have any real value for generic resale, and the only value it has is the value the company sees in it. So although they would love to have it, they may not be in the position to buy it for a really large sum of money, and at the same time, whatever they offer may be way more than anyone else would be willing to pay. It's tricky. Try to research the company and see, if it is a startup, established business, small mom-and-pop shop, corporation etc. This will give you an idea how serious they are, and if they can match that seriousness with some serious cash too.

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fluffythewondercat 13 years ago

Established, growing, ultra-trendy niche, has outside investors, with offices or franchisees (I couldn't tell which) all over the world.

It's only really tricky for them. I don't care if I sell it or not. If not, next year I'll have a 16-year-old domain. :-)

fLufF
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Gene Pimentel

13 years ago

Nice place to be, fLufF! Hopefully it's not a trademarked name. Be careful, do not indicate to them that you're willing to sell it, in case they are trying to gather evidence.

@Joshua - If someone else would have registered Google.com or Facebook.com back before they were known entities, they would not have the value we see today. The 2 companies that we all recognize today would have chosen a different name to build their empires :-) It's not the domain that is valuable in this case, it's the company/website built on the chosen domains.

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Melissa82

13 years ago

Whatever you decide just know that your best client in the foreseeable future is knocking at your door. Is the domain making you any money at the moment or is it a vase on the mantle?

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onegoodman

13 years ago

I would say first is your domain used by your only registered. Does it has any PR ? is it included in DMOZ.

The fact it has been registered for 15 years, wouldn't make a huge difference alone.

I would suggest that you estimate the domain value. on the dmoain estimator and take the average.

If this domain is their name I am sure they will try harder but may also try to take an action in case you try to use it against them.

If they interested in the website because the name is catchy, that mean they have other option and may compare quotes.

I tried to purchase one of the domains a year ago, some buyers went far asking me for $1000, I wouldn't pay that amount of money even if i can afford to pay that much only for a domain, simply because I can use my mind to get a close one. I ended paying $20 for two strong domains has the same exact keywords.

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tmjoe

13 years ago

Show them a little bit of interest in selling the domain over. Just so that, they do not consider of acquiring a new domain with a closer name altogether. You might be holding a tiny jackpot here. Btw, there is a 60 day lock/transfer period when you buy a domain correct?

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n1985

13 years ago

If its a really good price, I dont see why not especially if you arent active.

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fluffythewondercat

13 years ago

I received an offer today in the mid-four figure range.

I'm not sure what I'm going to do, so here's where not really needing the money is a disadvantage. If you had a tuition bill coming up or needed to buy a dependable truck, you'd be making a counter-offer and justifying it with reasons x, y and z. Or maybe you'd blink first and take their offer, even if it wasn't quite as much as you needed.

I've got to think about this.

fLufF
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B3n 13 years ago

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keyon

13 years ago

Originally Posted by fluffythewondercat

I received an offer today in the mid-four figure range.

Unless a buyer specifically says there's no room for negotiating -- a first offer is usually about half what a buyer is actually willing to pay. Ever watch "Pawn Stars" on the History Channel?

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fluffythewondercat

13 years ago

Originally Posted by keyon

Unless a buyer specifically says there's no room for negotiating -- a first offer is usually about half what a buyer is actually willing to pay. Ever watch "Pawn Stars" on the History Channel?

Sorry, I missed this comment earlier. Now I'll have to see if Pawn Stars is on Hulu. :-)

They didn't say it was their final offer. They said they were prepared to offer x,xxx for the successful transfer of all ownership rights. And that was it.

When we bought our house, we told the seller, "This is our first and final offer. No counteroffers. Take it or leave it." He took it.

fLufF
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Josh Anderson

13 years ago

Determine the market reach of the company, take a good stab at their budget, and realize that they probably do not want to pay 5 figures and counter them.

If you are not making any money with it... sell it.

Depending on the company now just might be one of the few times they had the budget to make you a decent offer.

If they are a more successful company negotiate with them for the price they are willing to pay.

If you have not answered their correspondence already you might consider using an intermediary to assist in negotiations or getting some advice from an experienced domainer.

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fluffythewondercat

13 years ago

Originally Posted by Josh Anderson

If you have not answered their correspondence already you might consider using an intermediary to assist in negotiations or getting some advice from an experienced domainer.

That thought has come to mind.

Does anyone know an honest domain broker?

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fLufF
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txconx 13 years ago

Originally Posted by fluffythewondercat

That thought has come to mind.

Does anyone know an honest domain broker?

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fLufF
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You don't need one. You have an offer, what's a broker going to do for you except cut into your profits on the sale?

To handle the sale and exchange of assets, I recommend the escrow service at Sedo.com. I've used them and it went like butter every time.
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- fluffythewondercat 13 years ago
  
  I don't see anything that says escrow. I see an "External Domain Transfer Service", is that what you're talking about?
  
  fLufF
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Thomas Smale

13 years ago

What's the point of keeping it if it's not doing anything and you don't have plans for it? Surely you'd be better off selling it for a nice chunk and then investing in some sites that generate an income.

I would also listen to Josh above and do a bit of research into the company to figure out how much you think they would be willing to pay.

Mid-4 figures sounds quite low if it's their company name and they make money.

I'd probably want something nearer the $20k. Don't forget to upsell them website design and SEO for their new company website

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PhilipT 13 years ago

I agree with Thomas that there is no point in hanging onto a domain which is not doing anything for you. If this opportunity slips through then you won't have gained anything from this little adventure.

What is a suitable price can only be decided by you doing an analysis of the company in the way you have already talked about. In your judgement is a 5 figure sum going to make them withdraw? Even if ithe price is below $10,000 it's still a good problem to have.

As you seem quite relaxed about it I wouldn't push it too hard.

Philip
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B3n

13 years ago

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LooseChange

13 years ago

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Gene Pimentel

13 years ago

Originally Posted by LooseChange

What a load of BS. The economy is down, domain sales are down, last time I heard of 4 figure domain offers was 5 years ago. Obviously, you're lying as if you weren't, you'd be brokering that domain through established brokers like Rick Latona. There's no way in heck anybody is offering you 4 figures for some common domain they can simply setup a .net site on.

I don't know if you're just plain rude or just like to hear yourself talk, because you have no idea what you're talking about. Accusing someone of lying just because you're not aware of the facts is really low. Many, many domains sell for four/five figures every day. In fact, more now than ever. I personally register domains every day, many of which I sell for four figures. If you're interested in facts, here you go: http://dnjournal.com/domainsales.htm

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fluffythewondercat 13 years ago

Gene, thanks for the reminder about DNJournal. It's a terrific resource; I used to read it all the time before I became a merchant.

I think this is sage advice:

For the many newcomers entering the domain industry we also want to point out that the reasons why a domain name sells for a certain price can be varied and are not always clear to those who are unfamiliar with the domain market. If you do not understand why specific domain names command the prices they do, you are likely to make unwise domain registrations or purchases. We highly recommend that you do some basic research before you buy anything!

Who would have thought "Krankenzusatzversicherung.de" would be worth $17,000?

fLufF
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- fluffythewondercat 13 years ago
  
  You obviously have no real clue about domaining as your website "DomainProfitsClub.com" is a very long tailed crappy domain.
  
  And yet it's ranked #1 on Google for "domain profits" and #3 for "domain profit."
  
  That clueless Gene must just be a lucky, lucky guy, eh?
  
  fLufF
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X+1

13 years ago

Hi!
I think the thumb of rule while selling domain is to take the avg earning of the domain for a month and then multiply it with X10.
If your domain is making $1500 a month then it's likely to have a value of $15,000+.

Just my 2cents.

Regards,
John Cody.

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fluffythewondercat

13 years ago

Originally Posted by X+1

Hi!
I think the thumb of rule while selling domain is to take the avg earning of the domain for a month and then multiply it with X10.
If your domain is making $1500 a month then it's likely to have a value of $15,000+.

Just my 2cents.

Regards,
John Cody.

It's not making anything. It hasn't had a website on it since...um, probably 2006 when I had an eBay affiliate site there.

That sounds like a reasonable rule-of-thumb for selling a functioning website, though.

fLufF
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Nathy Curiel

13 years ago

I would sell it. Unless you make crazy money with it of course

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Gene Pimentel

13 years ago

fLufF, it is amazing what some domains sell for. It's usually not so much the domain name itself, but finding the right buyer who can't live without it. Most domains on the market are worthless to the masses, but valuable to a few select buyers. In your case, I think you have that buyer. I would wait it out until they make an offer you're happy with.

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hattrick11

13 years ago

I would guess the domain is never going to worth more than it is right now with this company offering a deal. I'm not saying to take their first offer, but I'm guessing if you don't sell it, you will have a 15 year old domain name is worth much less than they are offering.

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kaedus

13 years ago

I'd counter offer and definitely consider selling. The first offer is generally much lower than they are willing to sell. They low ball you expecting a counter offer, until you bargain up to the price they are expecting to pay. If you take the first offer, you are probably losing out on a decent chunk of change.

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Gene Pimentel

13 years ago

If you do come to an agreement, I would recommend using escrow.com to handle the transaction. They are reliable, fast and efficient. They have a special service just for domain names. I typically use the option to split the fee 50/50 with the buyer.

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JayLeforce

13 years ago

You are in a position that you probably will never be in again. Sell the site for $30k and have fun counting that money!

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fluffythewondercat

13 years ago

$30K, probably not.

But I did just see that GoDaddy owns the .net version of the domain and they want more for it than was offered to me for the .com.

So here's a question: Is there a premium for a .com over a .net? I'm thinking there should be, given the way browsers behave.

fLufF
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Mike Grant

13 years ago

Originally Posted by fluffythewondercat

$30K, probably not.

But I did just see that GoDaddy owns the .net version of the domain and they want more for it than was offered to me for the .com.

So here's a question: Is there a premium for a .com over a .net? I'm thinking there should be, given the way browsers behave.

fLufF
--

.com is typically valued at least 2x the value.

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healthstatus

13 years ago

email their competition that you own the domain and that the company is interested in buying, and if they have any interest in owning that domain name. Two buyers make numbers go up quickly, three buyers and you have big paycheck in your future.

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Mrs.Butterworth

13 years ago

I agree with taking your time and doing a bit of research to decide on your price. You don't really NEED to sell it anyway, so if it doesn't sell it's no biggie at all, right?

whether you decide to sell or not, it looks like you have gotten some really good advice on this thread either way.

I am happy for your good fortune and hope the outcome is what you want.

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fluffythewondercat 13 years ago

I sent off my counteroffer this morning: .net price times 2, discounted slightly because, as I pointed out, I don't have to pay a domain broker. Now we wait.

If they accept it, great, if not, I'm comfortable keeping the domain. All the other TLD extensions are taken with the exception of .net and there are at least three dozen other Internet companies that could use this domain. I can increase the price and put it on Sedo.

I just want to reiterate, though, if you have an asset lying fallow, don't wait to sell until you're desperate for money. There was a time in my life not all that long ago I would have been forced to accept their opening offer.

Thanks for all your help, Warriors. There's plenty of good info here that I hope will help others.

fLufF
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Dustin Goode

13 years ago

Good luck with the sale and keep us updated. I am interested in hearing the ending of this real life story!

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B3n

13 years ago

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fluffythewondercat 13 years ago

I don't know -- there are a lot of maybes in that scenario. You can never really know how high someone is willing to go for anything. I sold on eBay for a decade and if I worried about getting the absolute highest price possible I would have 1) gotten a lot less sleep and 2) had a lot less cash flow. Instead, I determined what I was willing to accept and having gotten that, moved on.

You can get paralyzed by fear of leaving money on the table. So take your profit and move on to the next deal.

fLufF
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Sarevok

13 years ago

How rich is the company?

Tell them to make you an offer you can't refuse.

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randomquestion

13 years ago

Can you post domain name?

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amritrr

13 years ago

Since there are so many tlds out there these days like .com .net .org. There are also country specific tlds. I don't see much you can make out of this domain business really. And moreover, very soon companies who have the money will be able to book their domain name with their company name as the tld. (e.g. anything.google)

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Gene Pimentel

13 years ago

Originally Posted by amritrr

Since there are so many tlds out there these days like .com .net .org. There are also country specific tlds. I don't see much you can make out of this domain business really.

Care to rethink that?
http://dnjournal.com/domainsales.htm

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fluffythewondercat 13 years ago

Originally Posted by amritrr

And moreover, very soon companies who have the money will be able to book their domain name with their company name as the tld. (e.g. anything.google)

My husband and I were actually looking into that. .cat is taken but we wanted to claim .meow.

According to what we read you need $185,000 upfront and $25,000 a year.

The marketing costs, however, would far exceed that and we reluctantly shelved the project.

fLufF
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Tony Marriott

13 years ago

Originally Posted by amritrr

Since there are so many tlds out there these days like .com .net .org. There are also country specific tlds. I don't see much you can make out of this domain business really. And moreover, very soon companies who have the money will be able to book their domain name with their company name as the tld. (e.g. anything.google)

There is probably more to this than meets the eye and that is what an earlier post mean't when they said words to the effect "if you are not experienced you won't know why domains are worth the money they are".

It's not just a matter of "SEO", just "taking .net version" is not a realistic option. Firstly there is still a very strong belief in the "quality" of a .com and many companies want nothing less.

Probably bigger though is that if Fluffy has had this domain for 15 years the "new" company may find she has a claim against them. I bet my my boots that a good attorney has told them to buy up the .com domain to ensure no later legal implications that could work out extremely expensive, for them even if they succesfully defended any claim. $10,000 doesn't go very far in company legal fees!

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viscoa

13 years ago

You are so right in thinking that the person who gives a price first loses. Hold out and let them give you a number, who knows it may be higher than you think and you don't want to low-ball yourself.

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omk

13 years ago

I think that's great, but don't forget that if it's a decent size company they may not be as emotionally tied to that domain as u think. There are lots of companies that just register variants of their domain name and keep on doing business. So don't overdo the "position of power" thing. You don't want it to backfire.

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fluffythewondercat 13 years ago

There are at least three dozen internet companies that have variants on my domain, meaning they've registered mydomainxxxxx.com. The same thing goes for the company trying to buy my domain.

The problem comes when a company has registered a variant that's too specific. If the company down the road decides to develop a new product line or merge with another concern, they're going to want a shorter brandable name that covers everything.

Say eleganceshoes.com opens a designer clothing division, then later adds a line of jewelry. They're going to want elegance.com, if they can afford it.

fLufF
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- LilBlackDress 13 years ago
  
  I think you did the smart thing Fluff. Hopefully, they will counter or accept the offer soon.
  
  When I consider keeping something I always ask myself... Is it functional and in use? Does it give me enjoyment to own it? Would it be better off somewhere else?
  
  Looking at the name as an investment, it seems that now is the right time. You have a company that wants it. You aren't using it.
  
  I don't buy the hang on to things till you squeeze the last cent out of them theory. It is often the right time to let go and move on.
  
  This sounds like a win for everyone involved.
  
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kingprince999

13 years ago

to be honest there are many factors . if you are in a good financial position then keep this domain as a future security, if some one found you to get the domain, then definitely there will be more people in the future finding you, on the other hand if you want to enjoy the money sell it at an outrageous price first see whats its appraisal value and then quote a price five times or even 10 times more.

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fluffythewondercat

13 years ago

UPDATE: It took a few weeks but finally they agreed to my price. It's a done deal.

I will publish the domain name when escrow is complete, so you can all wonder what the fuss was about. :-)

fLufF
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Dustin Goode

13 years ago

Originally Posted by fluffythewondercat

UPDATE: It took a few weeks but finally they agreed to my price. It's a done deal.

I will publish the domain name when escrow is complete, so you can all wonder what the fuss was about. :-)

fLufF
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Awesome, congrats!

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dee4d

13 years ago

That's cool. You must be having the right domain name, and know what content and backlinks it has. That is where the money is!

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fluffythewondercat 13 years ago

Actually, dee4d, it's just a domain name. No content, no backlinks.

I've never successfully sold a domain before, so this is a first for me.

fLufF
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Dietriffic

13 years ago

Excellent result.

You were smart (and fortunate) to pick up on the GoDaddy .net price.

That gave you a credible point of reference for its 'worth'.

Nice work.

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fluffythewondercat

13 years ago

Got lots of help from Warriors, too, let's not forget that.

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fluffythewondercat

13 years ago

Escrow closed a few days ago.

The domain I sold was diadem.com. I know what you're thinking: What's a diadem? It means crown or tiara. I was heavily into crown jewelry at one point so it was the name of my business.

Final price was in the $6,500 - $7,500 range.

Escrow was handled smoothly by escrow.com. Buyer and seller split the fee.

fLufF
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Mullguy 13 years ago

Great result Fluffy! I think you handled this sale very well. Don't think that domain would have had anything like that value to anyone but that Company.
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Gene Pimentel

13 years ago

Originally Posted by fluffythewondercat

Escrow closed a few days ago.

The domain I sold was diadem.com. I know what you're thinking: What's a diadem? It means crown or tiara. I was heavily into crown jewelry at one point so it was the name of my business.

Final price was in the $6,500 - $7,500 range.

Escrow was handled smoothly by escrow.com. Buyer and seller split the fee.

fLufF
--

Congratulations fLufF. A very nice sale, and very nice domain name.