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discuss Equity Share Sale

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Levi_charlz

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I’ve been approached by a developer who’s interested in a Domain I hold. A preliminary offer has been made which includes a small equity share.

Has anyone had a experience of negotiating a deal like this?

The offer is way too low but they talk a good game and a shareholding is interesting.
 
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I am not in favor of such arrangements. I'd think the other party lacks funding, or is not confident enough in his business (assuming this a new startup). Depends on how much money we are talking about.
Perhaps offer escrow with payment by installments ?
 
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do a lease on UD , if they flop you still have domain and all payments. If they succeed you preset your current bin as a future price.

And if your feeling like a star do the installments with option to bin PLUS equity.

Good luck
 
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Depends on the person. Most startups fail. However, do they have a track record?

Mint.com was acquired for 1% of equity in the company, I think. It was sold for $170m two years later.

Make sure you know how they will build out the company, as raising venture capital will further dilute your equity stake.
 
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Is it a good domain that deserves more?

If so, I would be very averse to such a deal. Equity share is a pie in the sky when the majority of startups fail.

You san see right from the outset that the guys behind it don't even have the funds for a domain name.

You could offer to lease it to them tho.
 
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