$200,000 Offer - Sell or Develop?

[DomainAuction]

I was offered $200,000 for a domain name that I own by a company that is worth billions of dollars.

This figure was expected for this particular domain name however I am in need of some advice in regards to possibly developing a company/website out of this opportunity instead.

My domain is an exact-phrase match for technology that is going to be around for the next decade (guaranteed) and this particular phrase will be on over 100 million consumer electronic products, their commercials, packaging and even brochures - you can't miss it. Average price of these consumer products (as of now) is $10,000.

So, do I develop/drop-ship (e.g. 5-7% commission for 10 years) with an exact-phrase domain and stellar SEO/Development skills OR do I take my $200,000 and buy champagne.

All feedback is appreciated ahead of time! Thank you

 

[decades80]

I would negotiate the price of 100,000 and some revenue share of the company developed site.You cant compete with the multi billion company.

 

[DomainAuction]

Very true @decades80 - I totally agree on the competition factor.

However, selling 250 of these products as a drop-shipper or an affiliate will generate $200,000 in profits alone - and it's very possible to accomplish this. What if I were able to sell 1000 units? =)

I am not a fan of greed, but the #'s just don't add up to me although this is largest offer for any domain I have ever owned.

 

[loredan]

This one is tricky. Think that the multi-billion company can TM the exact-phrase and get your domain for $2000 if they go for an UDPR. I'd say you should sell it now if they are so generous and willing to spend $200K. If the technology is going to be around for the next decade I bet someone would TM the exact phrase sooner or later.

Just get the money, find & register another related domain and develop your dropshipping site on this new domain.

 

[Ralph2472]

Yes, I agree with loredan; but it's easy for anyone else to decide (they're not in your position.)
If it's such a good product that will be used by millions over the next 10 years, use some of the $200k to buy shares in the company.
Anyway, good luck with it all. I'm quite jealous.

Regards

Ralph.

 

[ecuadorbusiness]

This one is tricky. Think that the multi-billion company can TM the exact-phrase and get your domain for $2000 if they go for an UDPR. I'd say you should sell it now if they are so generous and willing to spend $200K. If the technology is going to be around for the next decade I bet someone would TM the exact phrase sooner or later.

Just get the money, find & register another related domain and develop your dropshipping site on this new domain.

I think this is a wise advice. Get peace of mind, this UDPR pharisees are doing whatever they want lately just take the money and find another domain for less than $5,000 and get into the business anyways. $200,000 is a huge capital to start a new business and you can go with the trip to Paris too.

 

[DomainAuction]

I have no knowledge regarding trademarks,
however this technology was not developed by 1 particular company or lab.

It's a generic phrase that will be used all around the globe and I registered my domain(s) with interest in developing companies/websites far before any trademarks were possibly filed.

Also, if any trademark situations pop-up - I won't be the one backing down.

 

[Keith]

I would counter offer if you feel it's that good. If they walk away, you develop it. If they take your counter offer then you got exactly what you were asking.

 

[loredan]

I have no knowledge regarding trademarks,
however this technology was not developed by 1 particular company or lab.

It's a generic phrase that will be used all around the globe and I registered my domain(s) with interest in developing companies/websites far before any trademarks were possibly filed.

Also, if any trademark situations pop-up - I won't be the one backing down.

It really doesn't matter who developed the technology, if someone has a trademark on the key phrase and you setup your site to sell the same key-phrase products that means you use your domain name in bad faith and compete against them for their trademarked products.

I'd say you should read the thread below as an example.

https://www.namepros.com/industry-n...holder-oeovation-haira-registered-2012-a.html

Hope it helps

 

[mikeowoicho]

*faints*

---------- Post added at 05:09 AM ---------- Previous post was at 05:05 AM ----------

I think this is a wise advice. Get peace of mind, this UDPR pharisees are doing whatever they want lately just take the money and find another domain for less than $5,000 and get into the business anyways. $200,000 is a huge capital to start a new business and you can go with the trip to Paris too.

This is the best thing to do.

 

[DomainAuction]

Thanks @loredan, that was a cool share...

I am 100% not worried about trademarks,
this is a phrase that 100+ top brands will be using and if it's licensed to 1 particular individual or company than I would take out a $200,000 personal loan and invest in her/him/that company lol.

Billionaires can cry, they are human. I would definitely hand them a KLEENEX tissue...
but I don't recommend them humiliating themselves =)

 

[4better]

This one is tricky. Think that the multi-billion company can TM the exact-phrase and get your domain for $2000 if they go for an UDPR. I'd say you should sell it now if they are so generous and willing to spend $200K. If the technology is going to be around for the next decade I bet someone would TM the exact phrase sooner or later.

Just get the money, find & register another related domain and develop your dropshipping site on this new domain.

If TM becomes a problem in the future, is it not a good idea to make the first move in filing the TM for that exact-phrase? That is, if the OP decides to develop/drop-ship the domain as he foresees the products could generate $200,000 in profits alone. OP believes he can achieve this so in that case why settle for $200k only if he thinks he can have more than that. If one is confident enough that he can possibly get this amount later by developing the domain and make a business out of it then I (imo) would push through with this plan. After all, he still has the domain and he can always sell it later if he wishes. Probably, the domain's value could even have increased getting a much better price by then.

 

[DomainAuction]

@4better ...

Thing is, many sources have told me that this phrase is not eligible to be trademarked.

Once again, no worried at all.

 

[Nappy Bunch]

If you are 100% not worried about the tradmark issue and this is an exact keyword match, and its a billion dollar company and you are not sure whether you wish to develop the site or sell how about put the ball back in their court..
Ask for $500,000 as a final offer, its not like they cant afford it and if they say yes then complete with a smile and if they say no then keep it and develop it.

Just my thoughts.. whatever happens best of luck

 

[DomainAuction]

That sounds good!

 

[NetOctave]

Have you tried contacting potential competitors who might be interested in that name ? Who knows, maybe you will start a bidding war ...
Another suggestion is getting a good negotiator, specially some one who is experienced in negotiating large domain deals. They might have contacts who can get you touch with other bigger buyers.

 

[decades80]

Very true @decades80 - I totally agree on the competition factor.

However, selling 250 of these products as a drop-shipper or an affiliate will generate $200,000 in profits alone - and it's very possible to accomplish this. What if I were able to sell 1000 units? =)

I am not a fan of greed, but the #'s just don't add up to me although this is largest offer for any domain I have ever owned.

To sell 1000 Units, youll have to invest in SEO like 200K
Just listen what everybody is saying and dont be greedy

 

[Edward Smeu]

Nice thread and nice domain. I can only ask you if you think the domain name is worth max 200k / sensible less or if you think the name is worth at least 200k / can go a lot lot higher?

If you have not seen this yet : http://www.ricksblog.com/2013/10/inside-1-35mm-ebet-com-sale/ . This should clear your mind a bit.

Best of luck!

 

[Keith]

If you have not seen this yet : http://www.ricksblog.com/2013/10/inside-1-35mm-ebet-com-sale/ . This should clear your mind a bit.

Best of luck!

Great play by play there!

 

[DomainAuction]

@STP ... such a great share!

@decades80 It's not about greed though, it's knowing my domains value, both short-term and long-term.

First off, let me share that I get decent direct type-in traffic for this domain already.

There are millions of this/these products rolling out within the next 24 months (confirmed) and with price tags ranging from $2,500 to $50,000.

That being said, if I were to even have .001% of the pie (in regards to sales) via drop-ship or as an affiliate i'd be a millionaire within the next 365 days.

I think the $200K offer got me excited because it's the most ever offered to me for any of my domains.

However, Mathematics + Confidence is telling me to keep/develop OR reject any offer under 7 figures.

Any input on my decision?