advice Well funded startup wants my domain

[Mojoman1234]

I was contacted by a principle from a well funded startup (>$12M), still in stealth mode and about to move into 25k square feet of prime commercial office space. The founders sold their previous company for billions. Let's call the new company "ABC Technology". I own "ABCtech.com". The real name is three characters + technology. (the three characters have industry significance) I used this briefly for tech blog, now just linked to a dormant twitter account.

Their initial offer was $500, "we're just a startup". I countered with: for that amount I'll just hold onto it and maybe use it with my next company, or offer it to "ABC Technology Consultants" who have also expressed interest. I also let him know that I am aware of their financial situation.

He is now asking if there is a price level I am thinking of.

I'd greatly appreciate your advice! What would you do?

 

[The New Guy]

Always, you just didn't have enough time pass in this case. The scale is dynamic, large companies do move slower than smaller companies. But even the very definition of a reasonable response time is subjective.

So you can make a vague statement like "Time kills all deals. Always has, always will." and if it's proven meaningless - just move the goalposts farther out and it regains meaning.

If you think I'm wrong or being mean - then quantify how much time is needed to pass before your sales seminar axiom becomes an ironclad guarantee. Either you'll argue you can't - which makes it meaningless - or the amount of time posted will eventually be countered by someone who had to wait longer for a deal to go through - again rendering it meaningless.

 

[cocaseco]

@The New Guy relax, its a saying. Its no different than "Don't answer the questions the client isn't asking", "Anyone can be replaced" or the eternal "If at first you don't succeed, try, try, again". These are all common sayings, but they should be taken with a grain of salt. Perhaps you are too young or aren't a professional salesperson, as if you were I think you would have not put so much thought into it. Have you never been to a sales training and not heard similar?

Maybe the problem is knowing what an Axiom is? From Google "a statement or proposition that is regarded as being established, accepted, or self-evidently true." In the sales community it is accepted as true, but that doesn't mean it is always true every single time, of course there are exceptions.

I don't want to argue, because it was merely a piece of wisdom that most seasoned sales professionals agree with. If you have 20 years of sales experience, or 0, and disagree great, don't repeat it. If you don't see any wisdom in it, ignore it. It wasn't given as a comment on you or anything you have done, or should have done. Had I known you were a delicate flower I would not have said it. I don't think you are wrong or mean, I didn't give what you are, or aren't, a moment of thought to be honest.

But for fun, and if you want to go way overboard then sure, if you wait long enough everyone dies and hence the deal ends. I think death ending a deal is pretty much ironclad. I don't think anyone will have a deal that goes longer. That doesn't fit in either of your narrowly defined choices, yet it still works.

Just because you don't understand something, or haven't experienced it, doesn't make it meaningless, it just makes it an opportunity to learn something new if you are open to it.

Good luck in your deal.

 

[cdboard]

the phrase is out there. sounds like a good one to remember.

an internet search for that exact phrase turns up a couple thousand results. and some of the results are from business discussions which may be worth reading.


early bird gets the worm.

 

[biggie]

@cocaseco

i too, didn't see the relevancy in that statement, as it applies to domain sales.

as we have seen, many of the sellers you guys/gals worship have held domain names for years before selling and some still haven't been sold or traded hands.

that's time that passes and also time, for a respective domain to mature.

and, during that time, the owners may have hundreds of inquiries, perhaps for the same name and maybe a fraction of that from the same person.

so, time, from that perspective does not kill deals, it helps deals to become more profitable for the seller.

time waiting on a car, clothes, appliances and even houses, can kill deals.

but there is only that one, special domain.


imo....

 

[cocaseco]

Sales is sales. Whoops that's another axiom that sales people often use to say that it doesn't matter what you are selling, its all the same. Believe it, don't believe it, I don't care. Personally I don't approach or expect a domain sale to be any different than a house or a washing machine in so far as my steps, strategy and the techniques, and most importantly The Close. They are exactly the same to me. Sure the words are different and the vehicles are different, but in the end the steps and techniques are the same. There is only special house, one special franchise, one special piece of jewelry and on and on. Sales is sales. Ooops I did it again

And I know someone, somewhere, right now is looking at that and saying "no way", I do XY&Z when selling a house etc, or I do ABC when selling a domain. You are thinking to granularly, back up 20K feet. i.e don't think so hard. Now if that confuses you (anyone), then just let it go as it doesn't mean you have to do that same

 

[London555]

So you can make a vague statement like "Time kills all deals. Always has, always will." and if it's proven meaningless - just move the goalposts farther out and it regains meaning.

If you think I'm wrong or being mean - then quantify how much time is needed to pass before your sales seminar axiom becomes an ironclad guarantee. Either you'll argue you can't - which makes it meaningless - or the amount of time posted will eventually be countered by someone who had to wait longer for a deal to go through - again rendering it meaningless.

Time does kill all deals-I don't see the thinking behind your post other than you don't know that TIME DOES KILL ALL DEALS.

 

[Name Trader]

My view on this is they don't NEED this domain since they already have one and are trying to secure surrounding real estate, which they might use instead of their current domain. I'd respond with a price around $25-30k. Which is good enough for you to make a good profit, and good enough for them to be satisfied with the price. Also it leaves some wriggle room for negotiations. I am also in the camp of thinking if they have asked for a price, then they are waiting for a price, before continuing negotiations. If I were the buyer, I would get frustrated with the lack of response, and move on. But that's just me and my nature. But unless somebody blinks here, I don't see a happy outcome. Contrary to that is there are some here who are continuing to suggest waiting is the best strategy. But I think somebody needs to get off the pot, since IMHO, they don't NEED this domain.

 

[The New Guy]

Time does kill all deals-I don't see the thinking behind your post other than you don't know that TIME DOES KILL ALL DEALS.

I hope this is a joke.

If not, my problem is the vagueness makes it meaningless. It's a thought that is expressed to make the person saying it seem full of wisdom when no useful wisdom is being presented.

Lecturer: "Time kills all deals"

Seller: "I went two months between contacts before a client bought it at my asking price"

Lecturer: "That wasn't long enough. My axiom is still valid".

Seller: "How long is 'long enough'"

Lecturer: "Time kills all deals!"

Because to respond with a timeline - say 6 months - would soon result in their favorite saying shown to be false because people would respond with stories of sales taking one or more years to complete.

Saying like that are something you see in seminars and sales books because it sounds impressive and can't be disproved - because they'll never give you a measure of time where their saying can be judged true or not.

 

[London555]

I hope this is a joke.

If not, my problem is the vagueness makes it meaningless. It's a thought that is expressed to make the person saying it seem full of wisdom when no useful wisdom is being presented.

Lecturer: "Time kills all deals"

Seller: "I went two months between contacts before a client bought it at my asking price"

Lecturer: "That wasn't long enough. My axiom is still valid".

Seller: "How long is 'long enough'"

Lecturer: "Time kills all deals!"

Because to respond with a timeline - say 6 months - would soon result in their favorite saying shown to be false because people would respond with stories of sales taking one or more years to complete.

Saying like that are something you see in seminars and sales books because it sounds impressive and can't be disproved - because they'll never give you a measure of time where their saying can be judged true or not.

Sorry but I don't understand your rant and no it wasn't a joke but best of luck to you.

 

[cocaseco]

@The New Guy Just forget it due, move along. You are reading way to much into it. If you need to know more, search for the term as someone else did. It will come back with 2700 exact matches that may help you. If its meaningless to you so be it. If you don't get it or believe it, don't worry about it. Just ignore those 2700 references from sales leaders around the world, they are probably full of themselves anyway.

BTW I gave you a measure of time and its about real world and business school. Where did you get your MBA? Many sayings cant be proved, or disproved. They aren't supposed to be as they aren't statements of universal fact. I've really never seen anyone have so much difficulty with understanding this.

 

[verbster]

"A bird in the hand is worth two in the bush." From where I sit, it's definitely better to close a sale asap and have money in your pocket rather than spend 2-3 weeks hoping a sale closes.

As far as the domain sale in this thread, I'm guessing it fell through.

 

[JamesCrew]

Not sure why people are not accepting the value of time here. Also I am not sure why domainers tend to have a different viewpoint for everything, even when these things are well-defined, accepted by majority and factual. I mean, come on people, ever heard of a saying TIME IS MONEY??? And does it really mean something to you? Being unique is good but realizing what works in the long run and in a business environment is also crucial for domainers.

Secondly, waiting for the right time is not delaying or wasting time. Because I am sure no one here has only invested in a single domain and is waiting for the right buyer to approach. So I respectfully have to disagree with the person who gave this example above that it takes time to make right deals. Like I said, wasting/delaying time is different, than waiting for the right opportunity/buyer.

From what you guys are saying it clearly shows that you don't value time and wasting time in making deals is right in your book. @cocaseco has given quite a few clear and direct replies but I don't see any firm response from other fellows who are disapproving that time can kill deals.

Just my 2 cents. And my apologies for being irrelevant as this thread is originally about something else.

 

[Kate]

My thoughts:

• Just because the startup is "well-funded" doesn't mean they will spend a lot on a domain name. Their allocated budget is probably below your expectations
• This is especially true when they don't have a critical need for the domain... They already have one.
  
• One thing to ponder: the first offer you receive will often be the last. Keep this in mind, especially when you have a potential buyer in front of you, who appears to be the best end user for the domain. Or when you have a domain that doesn't have a lot of 'obvious' end users.
• Obviously we all want to get the best price for our domains, but the other party must not feel like we are taking unfair advantage of them. We have to be tactful.
  
• On the other hand the OP says he has been using the domain. He's a not a professional domain seller. He just happens to own a domain that somebody else is interested in. So it's perfectly fine to answer that $500 is not worth the inconvenience even if the name is average. I declined a similar offer once, because I would have to migrate a number of E-mail addresses etc so it was not really worth the hassle.

At this point the negotiation may already be over. It happens all the time.

To sum up: I think you should stick to your guns when you have domains you know are good, that could appeal to many possible end users. When average domain names are involved, offers will be scarce and they must be treated more like once-only opportunities.
If you don't need the money, then no regrets.

 

[jideofor]

Not always.

I responded to an inquiry with a quote. No word from the buyer for two months - until one morning saying they wanted to buy it THAT DAY. For two months they let it sit and suddenly they had to have it right away. With larger companies the delay seems to be their way of doing business.

So true. I emailed a company for domain relating to a new device they just launched. They asked me to write a letter to their corporate address via mail. I did and followed up but no news from them since that day, even after I contacted them up to 3 times, including the ceo. No news of whether they will buy or not

 

[deflee79]

Looking at the dnjournal he may have sold it for 5k . Just speculation of course but it adds up.

 

[Mojoman1234]

Update: After not hearing back for two weeks, and digesting the wide range of advice here, I emailed him on Friday. Replying to his message "what range are you thinking of?" I replied "something in the $10k range". Thinking that may at least get a conversation started over $500 level. The quick response was "No thanks".

Oh well! I'll continue to use it and as they officially launch the company, they may rethink the value down the road. I'm still good with my $8 investment and my entertaining foray into your domain trading world. Thanks for the insights!

 

[London555]

Update: After not hearing back for two weeks, and digesting the wide range of advice here, I emailed him on Friday. Replying to his message "what range are you thinking of?" I replied "something in the $10k range". Thinking that may at least get a conversation started over $500 level. The quick response was "No thanks".

Oh well! I'll continue to use it and as they officially launch the company, they may rethink the value down the road. I'm still good with my $8 investment and my entertaining foray into your domain trading world. Thanks for the insights!

Look at it this way-would they pay $80 for it? Probably. That means you can hold it for 10 years and wait for the phone to ring but don't drop the price too fast-they'll probably need this name at some point. Good luck.

 

[disaac81]

I do think some attitudes on part of the domainer can give us a bad rep. We should always act professionally. Just My Opinion.

 

[Mojoman1234]

I don't think any of my communications with them were out of line. Keep in mind I am not a professional domainer, but a private entity contacted by a corporation.

It just occurred to me that I may start receiving email at my *abctech.com intended for abctechnology.com when they go live. That could be a concern.

 

[London555]

I don't think any of my communications with them were out of line. Keep in mind I am not a professional domainer, but a private entity contacted by a corporation.

It just occurred to me that I may start receiving email at my *abctech.com intended for abctechnology.com when they go live. That could be a concern.

LOL that's their problem for not buying the name-not yours. Don't even worry about it.

 

[bhartzer]

I've had a similar situation, when a potential buyer came back with "no thanks". For now, I would just leave it alone, when they're ready to pay more for the name, then they'll be back.

If you're really needing the cash and want to sell the name, though, then you may ask them for the best offer on the name. Most likely they'll come back with a price that's not near what you're asking, but will be more than their initial offer.

 

[Vinod R]

Renew it for the next 5 years and move on they will come. When you renew for 5-10 years they will know that you will not drop the name for 5-10 years and there is no need to wait for you to drop it, so they know that they will have to offer a price for the name. Let them come again, wait (Its hard, but it would be worth).

 

[London555]

Renew it for the next 5 years and move on they will come. When you renew for 5-10 years they will know that you will not drop the name for 5-10 years and there is no need to wait for you to drop it, so they know that they will have to offer a price for the name. Let them come again, wait (Its hard, but it would be worth).

That's a great idea and it only costs $80.

 

[jideofor]

Renew it for the next 5 years and move on they will come. When you renew for 5-10 years they will know that you will not drop the name for 5-10 years and there is no need to wait for you to drop it, so they know that they will have to offer a price for the name. Let them come again, wait (Its hard, but it would be worth).

That's what I plan to do for one of my domain. My case is quite different because I approached them but they have been acting like they don't need the domain, but from past history, they do need it and they have been registering related names and bought a few.

However, mine standout in all they have bought so far as it seem like a more category killer for the product. The domain will definitely favor them in the end considering they had a similar product which they acquire a similar domain for years ago. The only difference between my domain and that one is just the name of the major product involved... the second keyword is just the same.

 

[Mojoman1234]

New development: Another company using my domain for their email addresses

I have been using "[email protected]" for a while when using the domain. Just the other day I set up a wildcard to receive messages sent to any address *@abctech.com.
Lo and behold I start getting swamped with messages sent to several different people @abctech.com. Now these are not contacts at "abc technology", but at "abc tech consulting" an Asian based company with an English site that offers products and services. All emails are in English and they clearly do a lot of US business.

I had identified this business before as being another potential buyer for abctech.com, had no idea they were actually using it for some email.

I emailed a main address there asking them to contact me about the domain usage

Question: Can they use email addresses to a domain they don't own? What would you do in this situation?