Anyone Here Ever Successfully Negotiate for a Percentage or a Royalty Fee?

[lennco]

I know its possibly, Rick Schwartz negotiated a deal for Candy.com ($3MM + Royalties + 10% Ownership) but that was Candy.com.

Has anyone here ever successfully negotiated a sale for a percentage of ownership and/or a royalty fee?

I own 2 particular domains that I know could be a huge site one day in the right hands and I would hate to sell them outright without at least a royalty of some kind (3%-7%)

So, anyone here have any experience with this?

 

[freedom30]

...excellent question. Would be interested to know the answer...

 

[htmlindex]

It would be interesting to see the contracts drawn up by Rick about exactly how he did that & the terms and conditions in it.

 

[alien51]

Has anyone here ever successfully negotiated a sale for a percentage of ownership and/or a royalty fee?

You have to be specific, if you meant percentage of ownership of the domain or the business.

With regards to royalty. It always sounds good for domainers. But does it also sound good for the domain buyer? What would motivate or encourage someone to pay you royalties?

If i am the buyer, the first thing i would ask, is why would i need to continue paying you for life for this domain, after purchasing it from you? It would appear like milking me for money for your entire lifetime.

 

[lennco]

With regards to royalty. It always sounds good for domainers. But does it also sound good for the domain buyer? What would motivate or encourage someone to pay you royalties?

If i am the buyer, the first thing i would ask, is why would i need to continue paying you for life for this domain, after purchasing it from you? It would appear like milking me for money for your entire lifetime.

That would of course all depend on how bad they want the domain.
If they really wanted it bad enough then there is a chance to work out a royalty deal.

I would bet deals like this have been done, I was just wondering if anyone here has done one.

 

[alien51]

I was just wondering if anyone here has done one.

Perhaps there are.

But i bet it's extremely rare. That if ever you find one, it is more certain to be a deal-killer to be of any use to you, other than wishful thinking.

 

[verbster]

Most sellers don't know when they are selling to someone able to make a deal unless the domain is six figures to start with. I've "sold" a domain for stock ownership in the company using it. Didn't work out too well. Have also been turned down many times.

 

[Kenny]

You know what is sad.... most of the domainers that would actually know the answer to this question, dont post here much anymore.

Peace,
Cy

 

[oldtimer]

Usually this only works in cases where there is a very high caliber domain involved specially if the buyer doesn’t have the full amount required to purchase the domain, but wants the category killer domain that represents the field that he operates in or perhaps in some cases where the buyer can’t use any other domain or has his heart set in getting the domain that you have, or even in cases where the seller is not very motivated to sell and the buyer feels he has to provide some extra incentives to make the deal go through. All and all you need to have a good domain name that someone wants or needs very badly and on top of that you need to be in a strong enough position that you can afford to play hard to get.

This is something that I have been considering for my domain Mortgage.US in addition to my own development aspirations, but haven’t been able to find the right buyer yet.

IMO

 

[verbster]

This is something that I have been considering for my domain Mortgage.US in addition to my own development aspirations, but haven’t been able to find the right buyer yet.

mortgage.info sold for under $5k last month.

 

[oldtimer]

mortgage.info sold for under $5k last month.

Thanks for the info, but I expect a lot more for Mortgage.US especially now that the real estate market has started picking up again in the US.

Soon people are going to be looking for home loans and refinancing again, Mortgage.US can provide them with a fresh choice that can help them forget about all the bad experiences that they have had with the famous dot com mortgage companies in the past three years.

The fact that Mortgage.US sounds and looks authoritative and is geo targeted towards the US market makes it different (and perhaps a lot more valuable) then all the other alternative extensions.

IMO

 

[biggie]

You know what is sad.... most of the domainers that would actually know the answer to this question, dont post here much anymore.

Peace,
Cy

:talk:

ever wonder why?

but that aside, note how folks see the tip top success stories and ponder on that

even thinking their non .com's have a chance to rival such.

a name like 'candy com' has forever traffic, thus inherent value.

Valentines Day and Halloween are two of the biggest candy promotions
thousands of companies make it and dentists profit from the decay

and if your name isn't in that realm, then forget about it

sure, you may get a start-up to give you something extra, but a start-up, starts with nothing but hope.


I say:

first, hope that you can get some sales or maybe a few lease deals under your belt.
this will help you acquire good negotiating skills and build confidence for the future.

and you won't learn that shit from reading a blog or a guide.

imo...

 

[oldtimer]

:talk:

even thinking their non .com's have a chance to rival such.

I believe it’s wrong for you to categorically leave all non coms out when it comes to the possibility of being able to get royalties.

You need to understand that asking for such extra options to be included in the deal is based on the assumption that there already is a big company interested in your name (for whatever reason that that might be) and existing traffic might not be the main reason for that in all cases.

IMO

 

[lennco]

You know what is sad.... most of the domainers that would actually know the answer to this question, dont post here much anymore.

Peace,
Cy

Thanks Cy

 

[capiche]

I would think that for a lesser quality .com domain, that if you could work out such a deal, it would be either royalties or just bought outright. Not both.

That's not to say it can't be done, but like alien said.. it's gotta be rare.

As far as non com's, good luck. They're hard enough to even sell imo...even with cat's ass keywords. I sold CreditScore in the .us a couple of years ago and only got mid xxxx for it.

 

[biggie]

I believe it’s wrong for you to categorically leave all non coms out when it comes to the possibility of being able to get royalties.

You need to understand that asking for such extra options to be included in the deal is based on the assumption that there already is a big company interested in your name (for whatever reason that that might be) and existing traffic might not be the main reason for that in all cases.

IMO

:talk:

what you believe, quite frankly, is your biz

keep "your" dreams and hopes alive, despite what I say

cuz, for sure, if you don't ask for it, you won't get it.


but, when you do encounter any entity and ask for such royalties for a "non .com domain with no traffic", and get it... then come back here and tell .us the good news.

i'll be in line waiting to congrat you.


imo...

 

[oldtimer]

:talk:

what you believe, quite frankly, is your biz

keep "your" dreams and hopes alive, despite what I say

cuz, for sure, if you don't ask for it, you won't get it.


but, when you do encounter any entity and ask for such royalties for a "non .com domain with no traffic", and get it... then come back here and tell .us the good news.

i'll be in line waiting to congrat you.


imo...

Fair enough.

Thanks for sharing your thoughts.