Big company wants to buy a domain, how to proceed?

[rlopes]

So I was approached by a big pharma conglomerate about acquiring one domain I own.

1. Should I reply straight with the price?
2. Should I justify the price?
3. Should I mention how the transference proccess would work?
4. Should I ask a price 10x higher of the minimum I want? Or maybe 5x or 2x?

Thank you.

 

[TheWatcher]

Sell the domain name to the price you want, but don't be greedy or you might lose it.

I'm happy to get 100% return of investment, but that's me.

 

[TheBaldOne]

@The Watcher - so you will sell any hand reg'd domains you have to an end user for $20? (I damn well wouldn't.)

@rlopes - do your research on the company (products, research areas, financials, how many other domains they own, etc.) then check out competing end-users and whether they too might want the domain.

Just registering a domain is the easy part of domaining, it is all the research before registering it and for potential sales that takes the time.

As for price we cannot help you, we do not know the name, the potential buyer, what your wanted price is, and a lot more. If there are similar sales on public record, which I sincerely doubt (pharm companies normally insist on an NDA for business reasons), you can use these to pitch your price, otherwise it is basically up to you. My only advice is that a major pharm company will not be after a domain name that is not of benefit to them, and although it may be a poor name you have to be looking at $x,xxx - $xx,xxx and for a great name up to $x,xxx,xxx (though I doubt you have one of them).

My advice is over this long weekend do your research, write and re-write a reply until you are happy with it, then on Tuesday or Wednesday after a days break re-read your reply, make sure you are happy with it and send it to the company.

All the above is said of course not having any of the relevant information. (But I wish you luck and hope the sale goes through to your satisfaction.)

Specifics

State your price

Do not justify it

Payment via Escrow.com

Do not inflate your price - just give the price you expect (maximum), that will allow a little room for movement if necessary.

 

[Kate]

I would ask them to make an offer first. Then take it from there.

 

[lennco]

I would ask them to make an offer first. Then take it from there.

Ditto :tu:

 

[johname]

Just be prepared to be lowballed

 

[AEProgram]

Keep it simple if you want to maximize a chance of making a sale.

Hi

Thanks for you interest in [domain name]. The current price is [....]USD. To proceed please go to escrow.com and proceed to start a transaction or provide me with the email address that will handle this transaction on your end.

The above mentioned price is valid for 7 days from the date of this email.

Should you have any questions feel free to reply to this email or call me at [include any country codes etc] between the hours x-x [est,pst utf whatever]

Sincerely Yours,
[your full name, first and last]

do not include any motivation quotes or other nonsense that might be in your email signature that showcases signs of mental retardation


good luck with the sale!!!

---------- Post added at 09:27 AM ---------- Previous post was at 09:26 AM ----------

Just be prepared to be lowballed

when lowballed beyond reason the only reply should be no reply, try it and wait a few weeks

 

[WritersWrite]

I would not want them to make an offer first.

I have done quite a bit of price negotiation for intangible intellectual property (not domain sales), and I have preferred to make the first offer by proposing an amount that takes into account both my budget and a fair valuation of the property to be license.

By being the first to quote an amount, I establish the ballpark in which we are playing.

When you let the other party make the first offer, then, just by the nature of the process, that becomes the number that you negotiate against. If that number is absurdly high or low, depending on whether you are selling or buying, then you run the risk of being too far apart to even start a worthwhile discussion.

Specifically in relation to domain sales, this strategy assumes that you do not have any other issues complicating the matter such as a potential bad faith registration claim that could arise from quoting a sale price.

 

[forge]

To proceed please go to escrow.com and proceed to start a transaction or provide me with the email address that will handle this transaction on your end.

Ugh. Leave out that sentence. Reeks of desperation IMO. It's also awkward.

Also, negotiating by phone is a horrible idea.

 

[AEProgram]

I would not want them to make an offer first.

I have done quite a bit of price negotiation for intangible intellectual property (not domain sales), and I have preferred to make the first offer by proposing an amount that takes into account both my budget and a fair valuation of the property to be license.

By being the first to quote an amount, I establish the ballpark in which we are playing.

When you let the other party make the first offer, then, just by the nature of the process, that becomes the number that you negotiate against. If that number is absurdly high or low, depending on whether you are selling or buying, then you run the risk of being too far apart to even start a worthwhile discussion.

Specifically in relation to domain sales, this strategy assumes that you do not have any other issues complicating the matter such as a potential bad faith registration claim that could arise from quoting a sale price.

With domains thats wishful thinking and reeks of a mixure of greed and fear.

You come up with a price youll be happy to get for the name and you name it, you do not move from it, do not add numbers in anticipation of a counter, just set the price and stick to it.

There is the wishful thinking domainer that fears he would of gotten more he could of gotten more and in return keeps piling up domains and credit card bills. Avoid being that guy, its ugly.

 

[URLtrader]

Do your homework. Is it an existing product name ? Or an Exact Match Domain , a category killer ? What is the market size of that product ? How intense is the competition for keyword at google ? How many of the big boys (large Pharma Corporations) are among the top 10 advertisers.

Having done that, be realistic and reasonable. Find out prices of similar keyword domains or product category domains. And let us know when funds land in your account. Good luck.

 

[WritersWrite]

With domains thats wishful thinking and reeks of a mixure of greed and fear.

You come up with a price youll be happy to get for the name and you name it, you do not move from it, do not add numbers in anticipation of a counter, just set the price and stick to it.

There is the wishful thinking domainer that fears he would of gotten more he could of gotten more and in return keeps piling up domains and credit card bills. Avoid being that guy, its ugly.

Greed and fear?

I think it is illustrated in my statement that I approach business deals with the philosophy that both parties should walk away happy with a reasonable deal. How is that greedy or fearful?

Also, greed and fear have nothing to do with assuming that the other party will want to make a counteroffer. That is just the nature of the process.

Furthermore, it is completely unproductive to "set the price and stick to it" without any willingness to negotiate.

Both sides have a story and the best approach is to hear each other out and make adjustments accordingly.

 

[johname]

Check for trademarks. lol

Barely type a sentence(like you're a busy man/woman) asking their offer.

What I mean by "be prepared to be lowballed" is to expect it the moment you relpy asking for their offer, and start thinking about what you will say in response.

Goodluck

 

[AEProgram]

Greed and fear?

I think it is illustrated in my statement that I approach business deals with the philosophy that both parties should walk away happy with a reasonable deal. How is that greedy or fearful?

Also, greed and fear have nothing to do with assuming that the other party will want to make a counteroffer. That is just the nature of the process.

Furthermore, it is completely unproductive to "set the price and stick to it" without any willingness to negotiate.

Both sides have a story and the best approach is to hear each other out and make adjustments accordingly.

Yeah in theory it should work as you suggest, but in reality it doesn't'

I urge people to stick to what has worked for most, not what worked in a few isolated incidents, there is a reason companies like SEDO and many others urge people to list a buy now with a price over any other method. People obviously always know better, hence they are broke.

 

[elevator]

Try to find out information about the company in order for you to know their worth and their kin interest and why they are interested in the domain- you can do all of that findings from linkedin and on.google. Then ask them for their opening price and if they can give you anything arround $500 - $1000 you should know that they are not much serious, but you can push the price to something arround $5000- $10,000. but if their opening price is something arround $1000-$5000 you can push the price to middle five figure.
Just try your best and don't be too eager, try to be composed and you should not have any fear of trademark, provided your domain is not of that category.
If you realised that you are not strong enough to convince them; you can then give it to a pro broker to help you through the negotiation and payment.
Good luck.:wave:

 

[RevolutionaryDomains]

.

I would ask them to make an offer first. Then take it from there.

Easily the best approach [and post] in this entire thread. GL.

 

[rokoroko]

So I was approached by a big pharma conglomerate about acquiring one domain I own.

1. Should I reply straight with the price?
2. Should I justify the price?
3. Should I mention how the transference proccess would work?
4. Should I ask a price 10x higher of the minimum I want? Or maybe 5x or 2x?

Thank you.

they usually use middle man, how do you know it is big pharma?

They have emailed you or they phoned you and disclosed they are this company ?

Strange, last time I was approached by Sedo broker when it was involved by pharm company.

rokoroko

 

[serryjw]

Who ever asked to the dance states the price FIRST. If they found you on whois, they need to make the first move...then negotiation begins.

 

[Magicpig2]

A couple of friends who got me into domaining a few years ago owned between them the .com and the .net of a newly produced drug. A pharma company contacted first the owner of the .net, asked for a price, and I think he asked 5000 euros which they accepted straight off. They then went to the owner of the .com and offered him I think £15000, he countered £25000 and they cancelled negotiations. I suppose the moral of this tale is just because they might be a huge multi-national corporation, doesn't always mean they'll pay whatever you ask for....

 

[WritersWrite]

The moral of that tale is if you control the .com and .net, sell them as a package deal.