domain A UK fintech startup wants my domain: paysonal.com (pay + personal)

[Sherbeeny]

Hello NamePros Community,

A fintech startup in UK is interested in my domain:
Paysonal.com
(merged “pay” + “personal”)

How much should I ask for?
I’ve registered it more than a couple of years ago for a “potential” startup of my own.

Thank you in advance

 

[gilescoley]

I usually do a lot of research on the company first. Try and find out what sort of budget they have before setting a price?

 

[Mike Goodman]

Lucky you, they want the dotcom. It looks as though no other tlds or similar names are registered so they have lots of options, but if they want that name in dotcom it's to your benefit.

Having said that, the name itself doesn't have a lot going for it. OK it's short (8 letters, 3 syllables) which is good but a hell of a name to try to remember and it hardly squeezes through the radio test*. In fact it's so dependent upon how the broadcaster says it I'd say it fails the radio test.

In your shoes I'd hold my hand out for two and a half grand (my suggestion, think about it and set your own) and hope they say yes. You're not going to get too many offers for a name like that so be prepared to come down a little if they balk at your opening price.

Tip: have a good story ready. No need to tell lies but if you get into a negotiation the fact that you had it lined up for your own project, for instance, is a good ice breaker.

Other than that, @gilescoley has already said it.

*radio test - if somebody broadcasting or being interviewed, for instance, said the name how easy would it be to write it down, getting the spelling right?

 

[Sherbeeny]

I usually do a lot of research on the company first. Try and find out what sort of budget they have before setting a price?

They don’t have budget yet as they will use it but would pay for it later when they get investment.
So, whatever we agree on will be a loan to the company till they get funded.

Bottom line is, I can ask for the “potential” value of the domain regardless what they can pay now.

 

[Sherbeeny]

Lucky you, they want the dotcom. It looks as though no other tlds or similar names are registered so they have lots of options, but if they want that name in dotcom it's to your benefit.

Having said that, the name itself doesn't have a lot going for it. OK it's short (8 letters, 3 syllables) which is good but a hell of a name to try to remember and it hardly squeezes through the radio test*. In fact it's so dependent upon how the broadcaster says it I'd say it fails the radio test.

In your shoes I'd hold my hand out for two and a half grand (my suggestion, think about it and set your own) and hope they say yes. You're not going to get too many offers for a name like that so be prepared to come down a little if they balk at your opening price.

Tip: have a good story ready. No need to tell lies but if you get into a negotiation the fact that you had it lined up for your own project, for instance, is a good ice breaker.

Other than that, @gilescoley has already said it.

*radio test - if somebody broadcasting or being interviewed, for instance, said the name how easy would it be to write it down, getting the spelling right?

Thank you for your feedback.
Maybe they have done the radio test in UK. (I didn’t do it in Egypt)
All I know that they’ve said they like it and want it for their startup now but would pay for it later after they get funded.

So, I just need to ask for the highest number that would seem acceptable for investors when they check the books and all the payables.

It will be a number next to many other numbers.

 

[gilescoley]

They don’t have budget yet as they will use it but would pay for it later when they get investment.
So, whatever we agree on will be a loan to the company till they get funded.

Bottom line is, I can ask for the “potential” value of the domain regardless what they can pay now.

So they want the domain but they dont want to pay you now? Is that correct? Be very careful of this arrangement?

A lot of startups say they dont have a budget but you really dont know what funding they have. I would be giving them my asking price now and expecting payment.

 

[Sherbeeny]

So they want the domain but they dont want to pay you now? Is that correct? Be very careful of this arrangement?

A lot of startups say they dont have a budget but you really dont know what funding they have. I would be giving them my asking price now and expecting payment.

I agree with you. I would do the same.
Except this time as it’s a transaction with a trusted friend.

So, I just need everyone here to help me set a price for the “potential value” regardless of any concerns as they already like it and we trust each other.

I’d share this post with them.

 

[gilescoley]

Yeah, just set a price you are happy with. Its hard to set a price when you dont know their budget. You might go in at $5k and they are thinking $500. For a name you have owned for 2 years, I'd say $5k is nice return, assuming you hand registered for $10 or so.

I would delete the name from your original post in case the potential buyer sees this.

 

[VadimK]

Or you can play the card of ''nah, not really interested to sell at all as it's a great asset and bla-bla-bla', but ok, if you want, send me your offer''.
It looks risky, but in reality if they are interested, they will shoot their offer.

 

[jhm]

Get more information about them, such as what their business plan is, the team etc...see if there is credibility. If they use the line of "we don't have the budget currently"...which sounds more like "we want our business to turn a profit...and if it goes well, we'll have some cash to buy it"...which sounds like a bs scenario for you, with no guarantee of success. Considering they're getting involved in a payment provider business (judging by the domain), they've got to know they need a fairly decent budget in the first place...

Get some detailed info, see if the boot fits. If it doesn't and seems fishy, say you want an offer, or even look at some suitable lease options, otherwise not interested

 

[Mike Goodman]

@Sherbeeny (this may also be useful to you, too, @gilescoley) don't just lend it to them. Lease it to them with an option to purchase when they can afford it (but lease it on a renewable, set-period lease).

Depending where in the world you happen to be I may be able to help you directly. But if you are in Egypt, I suggest you contact @Rob Monster of Epik (there are a couple more Epik people on these forums too, any of them should be able to help) and get your advice from there.

My own suggestion would be a one year lease with option to either buy or renew for a further year at the end of that period. If the business does well they will raise the money and soon pay you the purchase price. If it fails, you have had some money for their use of the domain name and it will be safely returned to you.

Use an escrow service to handle the details including contracts. Yes they take a fee but they also collect the money and make sure you get paid. They also reassure the lessee because they will hold the authority code of the domain safely.

N.B. Formalise the deal. Especially as it is a friend. 6 months or a year down the track you have forgotten the detail of what you agreed - or forgot to write it down. Escrow services are used to this kind of deal, will make it fair for both sides, have a good contract template and you are far less likely to lose an erstwhile good friend.

 

[carob]

Using Dan.com you could sell or lease it to them in monthly instalments over a period of up to five years.

If you just give them the domain, even a signed loan agreement may prove worthless if the venture goes bust, and good luck getting the domain back in that case.

 

[Sherbeeny]

Thank you all.

Seems I should consider the lease option.

Would you please suggest some numbers?

How much monthly? or annually? for how long?

So far the only number I got from all of you is 5K USD.

 

[Mike Goodman]

It is up to you how much to charge. Various escrow services have experience of this type of deal and can advise you from start to finish, including with guidance on how much to charge for the lease or rental element.

Where are you? The best known escrow service will not deal if either party has its bank account in Egypt. There are some who will. Epik is represented here. I know @Rob Monster, Epik's CEO, deals with some countries others see as taboo.

But an escrow service is definitely what you need. They have the contracts ready for you. Getting them drawn up by a lawyer will cost a small fortune, unless you are an expert it would be stupid to attempt it yourself, and you will still need escrow to handle both the money and the domain name so both parties are ensured of no misunderstandings or fall outs.

Also, you will be protected if the startup fails, as @carob noted. In the event of failure your friend is unlikely be able to simply return your property to you.

 

[Sherbeeny]

Where are you? You really should use an escrow service. The best known one will not deal if either party is in Egypt.

But the escrow service is definitely what you need. They have the contracts ready for you. Getting them drawn up by a lawyer will cost a small fortune, unless you are an expert it would be stupid to attempt it yourself, and you will still need escrow to handle both the money and the domain name so both parties are ensured of no misunderstandings or fall outs.

Also, you will be protected if the startup fails, as @carob noted.

I’m in Egypt.
But my I have bank accounts in UK & Europe through Wise.com (TransferWise)

I think Dan is a good option.

I mainly need help with numbers... is 5K USD the highest I can start with?
Should it be 100 USD monthly for 5 years? or what?

 

[Mike Goodman]

If DAN will do the deal they are also able to guide you. They were one of the first into the field of renting, lease-purchase and leasing of domains. It would be DAN's escrow service handling the deal for you.

How much you want to sell the domain for is also your choice. @gilescoley suggested US$5k. I don't think that's unreasonable but it really is the top end of what it's likely to be worth. But that's just my opinion. You could ask for 10k, 20k or more if you so wish. Whether the buyer would agree to buy at that is quite another question.

As a compromise, you could ask for, say, GB£5k. That's very slightly less than US$7,000.

 

[noneisnone]

5000USD spread over a year or two should be reasonable i think