discuss My first $1,000,000 offer to purchase

[MapleDots]

I am about to make my first One Million dollar offer to purchase and I want this to go a smooth as possible.

I have asked the advice of a couple of my peers on how to best proceed with this but I thought I would also put it out to some of the members on namepros.

My usual way of doing business when I go after a domain is to attach a time frame to the offer to purchase, but to be quite honest this one is kind of in a league of its own and I have to be careful how to pursue this.

My plan is to offer 500k down and 500k when the deal closes.


What do you guys think?


1. Make an offer with no strings attached

or

2. Set a time limit to add an urgency to the sale

 

[cipcip]

I am lucky enough if I will get a $1k sale, millions, that is a dream.
If you really like the domain, go for it. Hope it worth the money.

 

[~ The 34 Year Buzz!!]

Listen here guys, I appreciate all the conversation and advice but really my only question is...

Make an offer with or without a time limit.

I'm leaning toward the time limit myself and am thinking 48 hours

@indiegrind Mentioned the time limit could weaken your position later. Why not say "please get back to me ASAP, since my offer might not still be available", or something similar?

 

[D Haynes]

I'd say make a time limit.

Theres clearly more than a couple of threads worth of debate just on the subject of making a million dollar offer in itself but that would be going off topic.

 

[MapleDots]

Just so this does not go too far off topic....

I'll give you guys a little more info on what's happening and why I am asking my peers for advice

I am in touch with the broker and was told the highest offer is just over one million but the purchaser needs a payment plan. I am not privy to the length of the plan but it is making me nervous that he may get accepted because I have not hear of any other action.

Hence I have contacted the broker and asked if a million would buy the domain.

That said if we start that process I would have to attach a time limit so the other party does not get financing to close the deal ahead of me.

So.... there are the facts

I am hoping to jump in and grab the domain ahead of someone who does not have the funds but I also have to make sure the broker understands my offer has limits.

 

[cyc]

Hope, it's not anything.ca.

 

[atinc]

Lets take that down to the level of where I am at.

Have no doubt a million is a lot to pay for a domain but then again not really, not if you have a plan to put the domain in use.

So if I open a brick and mortar business and stick one million into renovations I can depreciate that amount over 5 years. So basically my tax base goes down.

If my business is internet based I will look at my domain, developing, hosting costs etc to offset my taxable base.

I currently run a number of online stores and my largest one does 1.5 million annually but that took a number of years to happen. With the right domain name I am hoping to have similar success but 10 fold.

Now in perspective.... a million is not that much to pay even if it is just a domain. That is as long as I can be confident that I could get the additional traffic thereof.

If you have 1m dollar to invest, I would invest that money to the business not the domain name alone.

You can register relatively good domain with lower price tag and use the majority of that money for online marketing, ads, seo, labor cost and some kind of software that would help you grow exponentially.

If you are investing for resale, don't do it. It is not a good investment option while you can use it for your business.

 

[~ The 34 Year Buzz!!]

...That said if we start that process I would have to attach a time limit so the other party does not get financing to close the deal ahead of me....

Now you could do this:

...the time limit could weaken your position later. Why not say "please get back to me ASAP, since my offer might not still be available", or something similar?

...and make sure they understand you are paying 100%.



```````````````````````
So.... there are the facts
I am hoping to jump in and grab the domain ahead of someone who does not have the funds.

Maybe the other offer is some version of a lie?

 

[D Haynes]

If you have 1m dollar to invest, I would invest that money to the business not the domain name alone.

You can register relatively good domain with lower price tag and use the majority of that money for online marketing, ads, seo, labor cost and some kind of software that would help you grow exponentially.

If you are investing for resale, don't do it. It is not a good investment option while you can use it for your business.

This is exactly what I was thinking.

The one time it might be worth paying the big money is if the domain itself is paramount to the business plan working (e.g it IS the business).

 

[johname]

48 hours?

Too short and will look cheesy

Is this a cold offer?

 

[biggie]

I don't think I am that far out with the seller, and a million offer is a great offer for any domain.
You can ask but it's only worth it if someone actually makes an offer.

you don't think.... you are that far apart, but do you know, how far apart you really are?

and....

the domain can be worth a mil to the seller, based on inherent value or income earnings, even if you don't make an offer on it.
so that statement is untrue

I understood I would get comments similar to yours when I made the post but an offer of that size is relevant on most domains.

That said.... did you vote?

yes I voted "other"

and yes, you should expect comments like mine, if their are people here, with like minds.

either you're going to do it or you ain't.
and until you actually do make the offer -

then.... i'll be puff, puff, puff'n

imo….

 

[D Haynes]

The thing is...

For almost every single person reading this thread the question is hypothetical as they will never be in your position. What we say we would do and what we would actually do if it really was our money may be two different things.

To be in the position to be able to spend that kind of money shows you already know what you're doing.

Without disrespecting the members here, I think you should be asking people that have been in your position. You'll likely learn a lot more from them.

 

[MapleDots]

and until you actually do make the offer -

Read post #54 - that process has started, I'll post the details regardless how it concludes.

 

[MapleDots]

To be in the position to be able to spend that kind of money shows you already know what you're doing.

Money is easily spent, and in this price range there is always a risk unless your name is Rick Schwartz.

I wish I could say I'm not nervous about this.

 

[D Haynes]

Money is easily spent, and in this price range there is always a risk unless your name is Rick Schwartz.

I wish I could say I'm not nervous about this.

If you weren't nervous about it it wouldn't be worth doing.

 

[atinc]

If you have 1m dollar to invest, I would invest that money to the business not the domain name alone.

You can register relatively good domain with lower price tag and use the majority of that money for online marketing, ads, seo, labor cost and some kind of software that would help you grow exponentially.

If you are investing for resale, don't do it. It is not a good investment option while you can use it for your business.

Also

If you are saving this 1M dollar from your current business, it would be wise to spent that money to the business that generates that revenue.

Lifting up a new business is much harder than growing an active business.

 

[johname]

You have leverage because you don't have to do the payment plan

So it will just be if the seller likes the difference between the higher offer and your upfront lower offer

Hopefully, its a motivated to sell seller

Also, have to hope the stock market doesn't crash a week after

 

[HotKey]

Lifting up a new business is much harder than growing an active business.

Not always, and not usually. In my experience, starting fresh rather than trying to untangle something established yields less problems, and more opportunity to do it the right way.

**

Re no strings vs urgency..

Unless there really is urgency, don't manufacture it. 1 million dollars isn't your everyday domain deal. Don't go into negotiations with conditions you can't back up or will regret later.

 

[DOMAIN ILLUMINATI]

Definitely a .TOP.

You might be right, I wouldn't be surprised.

 

[Tshombe]

A bird in hand is worth 2 in the bush. If I had $1M I wouldn't put it in a domain. All the best mate! I'm sure you've done your due diligence and you're sure it's worth the risk.

 

[Silentptnr]

First, I don't think a time limit is necessary. Anything worth a million dollars is worth waiting for. What's more important is the detail in the process. High dollar transactions require a high level of due diligence, and contingencies in the event of problems.

Most large dollar domain investments have plans in place to develop and profit. If you are planning on flipping for profit, you might do better with other investments.

Anyway, best of luck. I would vote no time limit on the offer.

 

[atinc]

Not always, and not usually. In my experience, starting fresh rather than trying to untangle something established yields less problems, and more opportunity to do it the right way.

**

Re no strings vs urgency..

Unless there really is urgency, don't manufacture it. 1 million dollars isn't your everyday domain deal. Don't go into negotiations with conditions you can't back up or will regret later.

For my experience it is opposite. Lifting up a business would take minimum of 2 years( at least that's what banks are looking for) with so much hardwork - With a main side job you won't have the proper time to do the hardwork for your new venture.

Unless you are multi-millionaire and able to afford to hire professionals to do it for you.

But that is not even enough cause your business won't grow if you don't be there to manage things.

Having a business that generates 1mil usd "profit" may also get effected when you focus on your new venture.

 

[The Durfer]

first of all, it should be 999995, and then a time frame and then when you buy it, drink a dunkin donuts iced coffee with the five dollars. lol.

 

[Silentptnr]

High dollar transactions require a high level of due diligence, and contingencies in the event of problems.

This should include potential future udrp filings.

 

[Keukatodd]

Congratulations for just being able to do/consider this in the first place!

 

[J Sokol]

Listen here guys, I appreciate all the conversation and advice but really my only question is...

Make an offer with or without a time limit.

I'm leaning toward the time limit myself and am thinking 48 hours

Based on my vast knowledge (6 months) of domain selling, this sounds like a good plan to me. Whatever happens, please let us know how this turns out -- hopefully very well for you!