$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

 

[urlurl]

Take the money,

As google's algorithms have changed, you don't need exact words or phrases to get ranked or found these days, just good content, links, seo, etc.

 

[NameAgency]

It is not a matter of positioning on Google. Exact words work in users minds in an authority-leadership-trust manner. That's the real value of these domains.

 

[cdboard]

do you have experience developing a site and making a lot of money from operating that single website?

 

[DomainAuction]

@Primerlloc I totally agree with you, I have also owned the Vanity URLs for this particular phrase on the top 10 social media websites since 2008.

@cdboard Yes, I was an in-house SEO specialist for a company for several years and they were ranked #2 in the entire world within the matter of 3 months because of my work. The website consisted of only 48 pages where as rank #1 had/has over 250,000 pages and #3-8 had 50,000 pages on average. Their traffic increased by over 20,000% (within 90 days) - but this is not the only website I have done this for. When I realized what I am capable of, and how I made a TON of money for others (while getting hourly pay) I left the company and formed my own company.

 

[godolphin]

Why don't you call up Rick Schwartz, Frank Shilling... they might give you the right advice.

Good luck!

 

[DomainAuction]

@godolphin I wish I had those opportunities! My last domain sale was for $3,500 to a company that I later found out charges $3,500 for their smallest advertising slot PER DAY. It's frustrating working hard for a gem that others get to polish.

 

[urlurl]

It is not a matter of positioning on Google. Exact words work in users minds in an authority-leadership-trust manner. That's the real value of these domains.

just tried googling candy... i'm on the 5th page and I still can't find candy . com

 

[DomainAuction]

@urlurl You are comparing Candy that's $1 to the successor of a product that sold over 200 million units which (now) has a $1,000 on average price tag for over the past 10 years. Also in regards to Candy - the .com is weak in my opinion, but their Alexa Ranking proves they own A LOT more than .001% of the Candy pie. See where I am coming from?

 

[sofiapartner]

I would take the money and run. But thats me. Maybe you are smarter or not. Future will tell.

Do what you feel you should do. That way you wont regret later.

Good Luck.

 

[lincolndsp]

negotiate

 

[ipodxpert]

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

Congrats on getting an offer of $200k. Considering other facts you provided about the potential buyer and the products, it shows that you are really good at finding/picking a gem of a domain name.

Based on your other comments/opnion, it seems either you have already made up your mind or have a strong inclination towards waiting, holding and developing the domain name.

I'm sure you may have already done the research of that particular technology either getting outdated in next few months to few years. In technology world, things change really fast.

Secondly, what is the possibility of that particular company going for other ext? Is there a possiblity that someone has already applied or may apply for a new domain name extension with that particular phrase? Reason, I'm asking this is because you have mentioned that it will become a very popular phrase on commercial products...etc. What if that company or some other company in that niche applies for a new domain name extension with that exact phrase? Have you considered that?

Go with your guts and research because it has already worked in your favor when you got the offer of $200k.

Good luck!

 

[urlurl]

@urlurl You are comparing Candy that's $1 to the successor of a product that sold over 200 million units which (now) has a $1,000 on average price tag for over the past 10 years. Also in regards to Candy - the .com is weak in my opinion, but their Alexa Ranking proves they own A LOT more than .001% of the Candy pie. See where I am coming from?

i'm not comparing products, just domains. having a perfect match name these days does not guarantee top position.

Take the money

And if you are looking a building an affiliate site, buy a nice brandable, build a superior site, add some seo and now you are in business.

my 2 cents

 

[lennco]

The $200k is great up front cash, but you want some kind of ownership to go with that cash.

3% to 7% ownership is what you really want that way they do all the work and you sit back and collect money for the rest of your life, plus you would have some great equity.

Even if you have to drop the cash price a little it will be well worth it in the long run.

Good luck :tu:

 

[DomainAuction]

@ipodxpert interesting point but I do not see it as an issue what so ever and I thank the social media Vanity URL pages for that. They will be promoting and contain the link to the best domain name I own for this technology (which isn't the one with the $200K offer) so that will help out a lot with other extensions swarming the scene. Tagging/Mentions/Shoutouts etc

@urlurl don't get me wrong, I appreciate every feedback but I am not seeking top position, I am seeking at least .001% of the pie. You Candy example was great, especially stating they are nowhere to be found as you were on Page #5 - well, as I stated... they have a lot more than .001% of the pie and that's without being ranked well

---------- Post added at 01:07 PM ---------- Previous post was at 01:05 PM ----------

@lennco 100% agree with you on this, I have no experience in that department but a good friend of mine does and he said something very similar. Thanks

 

[gmd]

Few things needs to be considered:
1. Are you financially stable right now? or in 2-3 years to come? if yes
then keep it and develop it and make its value much higher. (long and stable investment)

2. If your not financially stable, the better option is sell it now. sometimes countering their offer leads to a non sale.

 

[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

 

[sbweb]

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.