$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

 

[Edward Smeu]

Have you considered to rent them the domain? It would be a good price 200k for the first year with the option to buy, seen good deals going this way.

Let us know what happens.

 

[fm1234]

Everyone has an opinion on this one; hope you meant it when you asked lol.

First and foremost, let me compliment you on your prescience with the niche/subniche you targeted back in 2008. Well done!

Regarding the domain value, take or leave it questions, there may not be as much wiggle room as you suspect The fact that the buyer prospect is a multi-billion dollar company may or may not be relevant -- many companies, regardless of size, target certain price ranges for acquisition and development. Jumping from 200k to 500k is a huge leap, and before you do something like that you need to ask yourself how much the very next best name can be bought for. $50k? $20k? $1k? The balance can be spent on marketing. Consider, if you make a counteroffer, asking for the original $200k in cash and overage in stock or other non-cash options. You might find a better amount of negotiating room using that tactic.

If you do sell the domain, make sure that you are not precluded from operating in the niche after the sale. You seem to have a pretty good grasp of the market, and there's no reason (as has already been pointed out) that you can't sell the domain and make a killing marketing via the other ones you mentioned having acquired. Actually, supply line deals might be worth looking at as well, eg. $200k cash for the domain plus some kind of exclusive/premium pricing or marketing material that would enable you to more effectively market the product on your other domains.



Frank

 

[Canopie]

If you are "safe" from trademarks and the domain is as generic as you say it is, I would definitely try to negotiate for more cash and/or equity, especially if you're dealing with a billion dollar company. Big companies know the value in domain names, and I'm not only speaking from an SEO perspective. There's also brand value and type-in traffic.

And, so what if there's a few big players in that industry? Every industry has big players, but it's about how much piece of the pie you can get. You don't have to be #1 to become a millionaire on the Internet. You can be #4 or 5 and still be a millionaire.

Another thought: Imagine developing a site for the domain, and growing it. Then, think about how much money they'll offer you once it's an established business, sitting on a premium domain.

Just my opinion.

 

[dbdomains]

If the domain is worth that much or more:
1. invest in a well qualified attorney
2. Negotiate
3. Try to get equity out of the deal as well

A domain is not the end-all-be-all of a business, especially one that is selling a product with a generic name. If they are worth billions, then they certainly have a powerful brand(s). but companies like that don't get large without knowing what they are doing. The fact that they offered $200k leads me to believe that they would pay a lot more. A law firm, especially one skilled in IP and deal-making will be able to get you top dollar.

IMHO

 

[forge]

A fool and money in his pocket are soon parted.

 

[garptrader]

I guess the question you would have to answer for yourself is why are you so confident that you could compete in this industry with players with much deeper pockets and if so why do you need this particular domain to do so. No doubt the perfect domain is a great head start, but one has to separate the domain from the business. I have seen restaurants on the beach fail even though undoubtedly they had plenty of tourist traffic. But if this is such a hot industry you might want to shop it around to other potential buyers. If you can get a bidding war going between three interested parties, you can sit back and watch the action.

 

[420domainer]

If the domain is worth that much or more:
1. invest in a well qualified attorney
2. Negotiate
3. Try to get equity out of the deal as well

A domain is not the end-all-be-all of a business, especially one that is selling a product with a generic name. If they are worth billions, then they certainly have a powerful brand(s). but companies like that don't get large without knowing what they are doing. The fact that they offered $200k leads me to believe that they would pay a lot more. A law firm, especially one skilled in IP and deal-making will be able to get you top dollar.

IMHO

Totally agree with above.

Can you share more details about the negotiations thus far? How did the $200,000 figure come about?

Congrats, btw!

 

[SearchEngineZ]

Type-in traffic doesn't necessarily equal sales. And SEO is getting harder... especially with technology ones. I once had netbook.biz - good for a brand to use in advertising, not easy to rank with against all the brand websites that mention netbook...

So, unless you are experienced in PPC and traffic buys, and you have or can get a good commission deal from a business that will sell all the major brands, I wouldn't be developing.

A bird in the hand. Take the cash.

 

[arcturis]

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

ask for more if they dont take it develop it

why havent u developed it yet if u had it for awhile?

why decide to develop now after this supposed offer?

makes no sense as to your motives. seems a bit sketchy if this is real of not.

why would someone go on a public forum to ask for opinions on such matters to ask such questions is beyond me

contact the pros directly and keep it close to your vest seems more sensible

 

[.NJ]

I would give my opinion with your situation but it's difficult without knowing the actual name.

Feel free to PM the name if you want another view point.

 

[Weber]

A sale at $200,000 would probably be in the top 10%, maybe 5% of historical sales for domain names. This is especially exceptional if it was regged in the last ten years.

 

[Domainate.com]

Having looked through this thread, it seems you are talking yourself out of selling it, so am not sure why you asked whether or not you should sell it. Clearly you don't want to, so develop it. Problem solved.

 

[wot]

Try to add on a percentage or shares in the interested company, best of both worlds. Easy for buyer as they do not have to front up additional cash. In the case of shares offer to retain them for a minimum period of time to sweeten the deal.

200K + shares/ percentage - sounds sweet to me.

 

[urlurl]

I agree, cash + shares

that way (assuming you keep the shares) you will share in profits

 

[decades80]

I agree, if you are leaning so strongly towards not selling it, develop it. You have 99% of the feedback to sell it, but you are stubborn and wish to keep it. So keep it I would say.and you are forgetting the important part. You dont have 100K to develop it to the full extent. You will need 1-2 years to gain some reputation on Google, people dont buy new sites products like candies.Especially for such amount of money. So wheather you are TOP 0.01% SEO and Developer (actually a small genius) , Or you will get burnt, because those companies out there can afford 500K for marketing and branding and they can acquire TOP people.

 

[verbster]

I'm not sure you are considering they buyer's response when it comes to asking for shares/ownership in the company, especially if it's publicly held. I've got a feeling you are going to be disappointed.

I'm wondering who you've negotiated with at what level. Do you have an official offer in writing with all the fine print? Signed by the CEO? Is there a time limit? What does your attorney say?

Sometimes the door only opens once. You feeling lucky?

$200,000 invested wisely might be your retirement in 30 years.

 

[oyong]

My take whether to sell or develop?

My answer is SELL it at a good price. It's the easier way.

Development = means creating YOUR OWN BUSINESS OR COMPANY. But If you are ready for this why not? Find a good partner.

 

[tekkybabao]

My little cent

I wil advise u to sell at that price $200k,i believe if u do u will rank among the best domain sales dis year but if u are trying to play wise/smart u may end up fucking tinz up.

 

[URLtrader]

A Bird in hand is better than two behind the bushes. Grab $ 200,000 and laugh all the way to your Bank.

Good luck. And keep us posted.

 

[VisionEdger]

this whole thread is BOGUS!

someones fantasy played out here guaranteed.


:zzz: