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

MapleDots · Dec 22, 2018

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

xynames · Dec 30, 2018

I don't think MapleDots is deliberately trying to be obtuse or deliberately presenting a meaningless offer. I think he's just being long winded. To those of us who have been involved in such matters, or have been brokers, we know that what he is presenting is not an actual offer, it is more of an...offer of intent to make an offer....

He could cut down the verbiage, and make it all more clear, but still...if any of us received such an email we would definitely respond, UNLESS...maybe there is some past history between the parties that makes this broker not take MapleDots seriously, such that the broker doesn't wish to respond, or is in no hurry to respond. Strategically speaking, if I were dealing with an inquirer that I didn't take seriously I would deliberately wait a while before responding to him.

Or, it could be as simple as the broker is on vacation, but...that doesn't seem so plausible does it? Nowadays people are open for business or at least for response, practically 7/24.

wwwweb · Dec 30, 2018

wwwweb · Dec 30, 2018

MapleDots said:
I have a fairly long email string with the broker where I made previous offers, and I now have a second well connected party involved who will also be reaching out. The second party is a prominent domainer and a close associate of the broker, if there is a possibility this can work he will let me know.

At this point all I can do is wait for all parties involved to respond.

It is definitely on my wish list and if I can get it within my budget then I will be very happy.

A.D. ?

I don’t think they are taking you seriously, you are dealing with a corporation who has hired a top notch broker who handles big ticket sales.

If they are saying $3M, and you saying $1M, it is not a wholesale namepros deal that $2M can be discounted. When a board is involved, shareholders etc, there has to be accountability, deals don’t get done in 48 hours, or even answered in such, the broker is on a leash also. They hired the broker, the broker probably gets paid the same either way, as any inquires go right back to them.

A million dollars is a lot of money, but it doesn’t mean anything if both parties are two far apart. This is a national media chain, albeit heavily leveraged in offline media, but it’s not a John Doe who would be a bit more excited about a million dollar offer.

I think what Steven who has seen a lot is referencing is we have seen many times a inquiry stating will $5000 buy it, and once you respond they go quiet, or say thank you, and go quiet, or say they will think about it.

I think in this case a verbal offer is solid, but the brokers job is to get the most, not an absolute minimum offer.

scrsteven · Dec 30, 2018

wwwweb said:
I think what Steven who has seen a lot is referencing is we have seen many times a inquiry stating will $5000 buy it, and once you respond they go quiet, or say thank you, and go quiet, or say they will think about it.

I've received the inquiry "Would you accept $X?" dozens of times over the years. wwwweb is correct that I've learned if I say "yes" then nearly everyone replies with "thanks" or "OK, I'll think about it" or "OK. Would you take $Y? [a lower number]". Almost no one follows through to actually purchase at $X.

So now my reply is often simply "Is that an offer?", and if they reply at all, it's almost always a "no, I was just curious" type of response.

In summary, if you want to really make an offer, be clear about it; don't beat around the bush and look like a time-waster to anyone with experience.

johnnie018 · Dec 30, 2018

Agree with Steven, stop the nonsense MapleDots, make a genuine offer.

Toptrade · Dec 30, 2018

MapleDots said:
Update - 6pm Dec 29th 2018

Official

To further our previous communications...

1. Offer officially made

2. I have also enlisted the help from a high up domainer who has personal contact with the broker.

3. To maximize the possibility of attaining the domain I may extend the offer by one day since new year day is involved.

4. I will no longer be responding to anything but constructive comments conducive to this topic.

Extension of the offer by a day or two is recommended since end of year is usually a festive time and depending on the daily inbox load of emails one receive, the potential seller may not respond in time. Also, such offers may not occur every day and so the potential seller may be seeking advice on responding prior to same. Just my two cents!

eurorealtor · Dec 30, 2018

wwwweb said:
When a board is involved, shareholders etc, there has to be accountability, deals don’t get done in 48 hours, or even answered in such, the broker is on a leash also. They hired the broker, the broker probably gets paid the same either way, as any inquires go right back to them.

I would add, the board members are probably skiing in Colorado, or having fun with family this time of year. Personally I would worry about more important thinks than timeframe of my offer, like if the domain is not TM, or stolen, or whatever else. Good luck tho.

London555 · Dec 30, 2018

I don't believe this post. Not sure what your game is but it's nonsense. Anyone making a substantial offer such as a million $ on a domain name doesn't come on NP and ask for advice.

Toptrade · Dec 30, 2018

London555 said:
I don't believe this post. Not sure what your game is but it's nonsense. Anyone making a substantial offer such as a million $ on a domain name doesn't come on NP and ask for advice.

I beg to differ, but NP IS one of the places where people seek advice, regardless of the value of domains.

MapleDots · Dec 30, 2018

Contact with the broker has been re-established.

At this point there will be no further updates until negotiations have completed.

DOMAIN ILLUMINATI · Dec 30, 2018

MapleDots said:
Contact with the broker has been re-established.

At this point there will be no further updates until negotiations have completed.

Thanks 4 the update.

Toptrade · Dec 30, 2018

MapleDots said:
Contact with the broker has been re-established.

At this point there will be no further updates until negotiations have completed.

Great! Patience is key!

oldtimer · Dec 30, 2018

You don't have to respond, but here are a few things to consider,

Are you doing the negotiations yourself or is someone else representing you (or helping you), if you involve any third parties in the deal on behalf of yourself whether it’s a friend, top domainer, broker, or anyone else it might be wise to have a contract with them that contains an exclusivity claws so that they don’t engage in Dual Agency and will be legally obligated to look after Your interest above anyone else’s. It might also be wise to establish a professional contact with a domain attorney not only to help you with this deal but more importantly to also provide you with advice concerning your use of this domain and any challenges to the domain that might arise in the future. IMO

MapleDots · Jan 1, 2019

Turns out xynames was correct and the broker was off for holidays for a week.

Unfortunately I was not able to procure the domain.
I was told by the broker that the owner of the domain is wanting to get 1.5 million.

A number of my friends on namepros have given me some great advice and even a bit of inside information on the domain which was quite helpful. In the end there was a lot of conflicting information on who was bidding and for how much. It got to the point where I could not make sense of any of the timelines and lower offers were being negotiated after higher ones which did not make any sense to me.

Couple of things which I thought were a bit unusual in the negotiation process.

1. I was asked to provide proof of funds when I made my offer - which I did.

2. I was asked several times for a letter of intent - I basically responded that I was a domain investor and my intention was to either monetize or resell the domain. I think that might also have made a difference because to me it almost sounded like they wanted to know exactly what the end use of the domain was going to be.

-EM- · Jan 1, 2019

So what's the $1.5 mil domain?

namemarket · Jan 1, 2019

MapleDots said:
2. I was asked several times for a letter of intent - I basically responded that I was a domain investor and my intention was to either monetize or resell the domain. I think that might also have made a difference because to me it almost sounded like they wanted to know exactly what the end use of the domain was going to be.

That very well may have made him not take your offer. I am sure the owner thinks you had a buyer already in mind, or you are acting as a broker now so why should they help you make easy money, or they may believe the other buyer may end up going direct to him eventually and be able to pay more.

I really fail to understand why you had to admit you may be reselling the name if you were serious on buying it. It's a big negative to disclose it and would only be dishonest if you say you have no plans to sell it in the future when you do.

MapleDots · Jan 1, 2019

namemarket said:
It's a big negative to disclose it and would only be dishonest if you say you have no plans to sell it in the future when you do.

The broker knew exactly who I was and what I did, if I lied about it then it would have been a very poor lie.

MapleDots · Jan 1, 2019

-EM- said:
So what's the $1.5 mil domain?

The domain is not sold yet so I'm not sure I should discuss that until everything settles.

namemarket · Jan 1, 2019

MapleDots said:
The broker knew exactly who I was and what I did, if I lied about it then it would have been a very poor lie.

No need to lie just don't volunteer it.

Why did you reveal you are a domainer? That's also a big negative to a seller.

namemarket · Jan 1, 2019

-EM- said:
So what's the $1.5 mil domain?

I do not know the name but just a guess is a domain like Canada.com

HFT · Jan 1, 2019

MapleDots said:
The domain is not sold yet so I'm not sure I should discuss that until everything settles.

I think you should now go quite on the broker, don't reply. He anyways has set the price at $1.5MM, you should now wait for him to get back and negotiate him down to $500k.

namemarket · Jan 1, 2019

If it is a name like Canada.com and other geo's there's a serious risk it could be legally 'stolen' thanks to the legal precedent established when France.com was taken away from its long time owner of more than 20 years by a local court ruling which court did not even have legal venue or jurisdiction, imo.

MapleDots · Jan 1, 2019

HFT said:
I think you should now go quite on the broker, don't reply. He anyways has set the price at $1.5MM, you should now wait for him to get back and negotiate him down to $500k.

You actually nailed it

1.5 million is a lot of money and at this point I don't believe there are any offers anywhere near that.

HFT · Jan 1, 2019

MapleDots said:
You actually nailed it

1.5 million is a lot of money and at this point I don't believe there are any offers anywhere near that.

He was just testing your waters, and seeing if you would step-up. Typical Wall Street type moves.

campout · Jan 1, 2019

MapleDots said:
I was asked several times for a letter of intent - I basically responded that I was a domain investor and my intention was to either monetize or resell the domain.

I'm pretty sure a letter of intent isn't about stating your "intention" for use after purchasing something. I think it's more to get your intention to purchase in writing.

https://en.wikipedia.org/wiki/Letter_of_intent

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