advice I received an offer from a Billion dollar company for my LLLL.co

[Nomad91]

Hey Guys,

So I received an offer from a billion dollar public company for a 4 letter word .co domain I own (LLLL.co) The domain is the companies name.

They first offered me $2500 for the domain, I declined, and replied saying that my selling price is in the mid to high five figures range ($xx,xxx)

They then adjusted there offer to $10,000. (yesterday, I haven't replied back yet)


My question to you guys is am I being too greedy? What price would you sell a 4 letter word .co domain for? I feel like I should at least get mid five figures. What do you think?

for some context the .com is already in use by another company and they're not likely to sell, hence why I think they want the .co. instead.



I want to hear your thoughts. (Before I reply back to them)

 

[Mytz.com]

I feel can sell it,
Since they don't have to use COM domain names,
Then they have too many choices,

 

[Revisiting]

I would be interested in the Time-Scale of their 2nd offer of 10k . If it was an immediate (or very short time) response Say over just a few days or less. Then you tend to be on solid ground, to at least ask for Double or more. Lets face it, these guys aren't going to go away. I personally wouldn't try to over play this hand. If you go in 'over the top' You could find they have time to play with and leave you hanging on a string. So assuming this isn't a counter-offer from the buyer that's taken months to materialize I would respond at around 20 to 25 k with a time-limit on acceptance.. I don't like negotiations dragging on But, that's my personal opinion

 

[william]

It all depends on two factors:

1) Can you walk away from the deal and be fine with getting nothing from it?
2) Can they walk away from this domain name and get something else?

If you answered yes to the first one and no to the second, you can certainly play the game and see how high they are willing to go. If you answered something else, then you can play it safe and counter some close to their offer. If you want $15K maybe counter with $19K-$20K.

Just know that if this is a billion dollar company, each of the steps takes time. There may be months in between offers. That's something you should factor in when considering whether to counter or accept as well. If you NEED this money now, then a counter-offer could be counter-productive.

 

[Revisiting]

wrong thread, sorry

 

[NameBuyer.com]

First off. It can make a big difference if the billion dollar company is a product company with lots of brands under it, or if it's a technology based company that is going to use the domain for their main brand. But what seems to matter most is whether that person leading the company is a believer in branding and how domains play a large part in that branding, as opposed to a non-believer.

I had an inquiry from a company with over a billion dollars in revenue annually, who told me $14,500 was too much for a domain that exactly matched their product brand name after they contacted me to buy it. I've also seen a 2-3 guy startup with a JUUL (e-cigarette) accessory product use their own financing and pay $15k for the domain with little hesitation.

So if the company looks like they'd be using it as their main website, personally I would stick to the pricing you have in mind.

Negotiating is always a game of determining the buyer's Reservation Value (RV) vs your Reservation Value (RV). The Zone of Possible Agreement (ZOPA) is anywhere between your RV and your buyer's RV.

One thing to keep in mind is your domain doesn't sound like it had a price set from the start, so the buyer was not aware of your asking price with their first offer. With no anchor price set at the beginning, the anchor is going to be their first low offer. Because of this, the negotiations are going to inherently start slow. This is one reason why your landing page should only offer a "Price Upon Request" option rather than "Make An Offer". So it may take a couple iterations of refusal to anchor your price in the mid-high 5 figures.

From(http://www.successfulnegotiators.co...tion-terminology-batna-reservation-value-zopa) & Negotiation Genius (http://www.negotiationgenius.com/)


You seem to be on the right path. As Rick has stated in the past, don't give a counter offer or actual price until they are close to your internally decided price. That way you still have some flexibility if things come to a halt. You've told them mid to high 5 figure, so there's no need to say more. With their next offer you can talk about the big plans you had for the domain, or what the domain could do for a company when used in it's best possible use case.

If the domain is realistically in the realm of the domains below, that's another good indicator that you are in good shape. If they are a smaller company, you can also say you'd consider equity or a small percentage if the company gets acquired, rather than upfront financing for the right startup. Rick took a smaller initial amount for teem(dot)com (I believe around $30k or so), and that was a huge payoff for him in the end with it paying out over $1 million based on the agreement. Doing it this way, you are leaving the deal open no matter who it is if they are really serious. A startup with limited cash can still make it happen if they are serious about it.

Most serious buyers are going to make a push to convince you with several back and forths, especially if you are sticking to only giving a "mid to high 5 figure" range rather than setting a price. A couple months ago I sold SimpleLogin(dot)com for a little over $16k. My listed asking price was $25,000 on the domain, which I'm starting to believe static prices are a bad idea for potentially higher value domains.

The buyer of SimpleLogin(dot)com was adamant about not agreeing to offering a percentage if/when the company is acquired, which I thought was strange. But they assured me it was because they were getting government grants, and it could affect their eligibility for future grants, which was a creative and somewhat convincing argument. Ultimately, I should have went with my gut on this because in the end I found out that they were already in talks to be acquired by ProtonMail and are planning on creating "dozens" of jobs in the coming years.

https://techcrunch.com/2022/04/08/proton-buys-simplelogin/


By offering the option of a percentage if/when the company is acquired, you are really taking a gamble on the company and only getting a payoff in the event the company is a huge success. To the buyer, as a startup, this is easy for them to give away because there is little upfront cost, and if they are acquired in the future, the 2%-3% given to you will not be significant, since they'll have a windfall. Additionally, the domain may help them be acquired faster while not hindering their startup expenses with huge upfront costs.

 

[Emmadomains1]

Hey Guys,

So I received an offer from a billion dollar public company for a 4 letter word .co domain I own (LLLL.co) The domain is the companies name.

They first offered me $2500 for the domain, I declined, and replied saying that my selling price is in the mid to high five figures range ($xx,xxx)

They then adjusted there offer to $10,000. (yesterday, I haven't replied back yet)


My question to you guys is am I being too greedy? What price would you sell a 4 letter word .co domain for? I feel like I should at least get mid five figures. What do you think?

for some context the .com is already in use by another company and they're not likely to sell, hence why I think they want the .co. instead.



I want to hear your thoughts. (Before I reply back to them)

Take the money pal

 

[Nomad91]

First off. It can make a big difference if the billion dollar company is a product company with lots of brands under it, or if it's a technology based company that is going to use the domain for their main brand. But what seems to matter most is whether that person leading the company is a believer in branding and how domains play a large part in that branding, as opposed to a non-believer.

I had an inquiry from a company with over a billion dollars in revenue annually, who told me $14,500 was too much for a domain that exactly matched their product brand name after they contacted me to buy it. I've also seen a 2-3 guy startup with a JUUL (e-cigarette) accessory product use their own financing and pay $15k for the domain with little hesitation.

So if the company looks like they'd be using it as their main website, personally I would stick to the pricing you have in mind.

Negotiating is always a game of determining the buyer's Reservation Value (RV) vs your Reservation Value (RV). The Zone of Possible Agreement (ZOPA) is anywhere between your RV and your buyer's RV.

One thing to keep in mind is your domain doesn't sound like it had a price set from the start, so the buyer was not aware of your asking price with their first offer. With no anchor price set at the beginning, the anchor is going to be their first low offer. Because of this, the negotiations are going to inherently start slow. This is one reason why your landing page should only offer a "Price Upon Request" option rather than "Make An Offer". So it may take a couple iterations of refusal to anchor your price in the mid-high 5 figures.

Show attachment 220025From(http://www.successfulnegotiators.co...tion-terminology-batna-reservation-value-zopa) & Negotiation Genius (http://www.negotiationgenius.com/)


You seem to be on the right path. As Rick has stated in the past, don't give a counter offer or actual price until they are close to your internally decided price. That way you still have some flexibility if things come to a halt. You've told them mid to high 5 figure, so there's no need to say more. With their next offer you can talk about the big plans you had for the domain, or what the domain could do for a company when used in it's best possible use case.

Show attachment 220027

Show attachment 220028



If the domain is realistically in the realm of the domains below, that's another good indicator that you are in good shape. If they are a smaller company, you can also say you'd consider equity or a small percentage if the company gets acquired, rather than upfront financing for the right startup. Rick took a smaller initial amount for teem(dot)com (I believe around $30k or so), and that was a huge payoff for him in the end with it paying out over $1 million based on the agreement. Doing it this way, you are leaving the deal open no matter who it is if they are really serious. A startup with limited cash can still make it happen if they are serious about it.

Show attachment 220026


Most serious buyers are going to make a push to convince you with several back and forths, especially if you are sticking to only giving a "mid to high 5 figure" range rather than setting a price. A couple months ago I sold SimpleLogin(dot)com for a little over $16k. My listed asking price was $25,000 on the domain, which I'm starting to believe static prices are a bad idea for potentially higher value domains.

The buyer of SimpleLogin(dot)com was adamant about not agreeing to offering a percentage if/when the company is acquired, which I thought was strange. But they assured me it was because they were getting government grants, and it could affect their eligibility for future grants, which was a creative and somewhat convincing argument. Ultimately, I should have went with my gut on this because in the end I found out that they were already in talks to be acquired by ProtonMail and are planning on creating "dozens" of jobs in the coming years.

https://techcrunch.com/2022/04/08/proton-buys-simplelogin/


By offering the option of a percentage if/when the company is acquired, you are really taking a gamble on the company and only getting a payoff in the event the company is a huge success. To the buyer, as a startup, this is easy for them to give away because there is little upfront cost, and if they are acquired in the future, the 2%-3% given to you will not be significant, since they'll have a windfall. Additionally, the domain may help them be acquired faster while not hindering their startup expenses with huge upfront costs.

Wow, Appreciate the response! That was super helpful. Thank you

 

[likemike]

I think $10-k is a very good price for a LLLL co. The chance you take countering, perhaps losing the buyer, may in the end not be worth the risk. Let us know how things work out and good luck!

 

[GreatBrand.in]

Hey Guys,

So I received an offer from a billion dollar public company for a 4 letter word .co domain I own (LLLL.co) The domain is the companies name.

They first offered me $2500 for the domain, I declined, and replied saying that my selling price is in the mid to high five figures range ($xx,xxx)

They then adjusted there offer to $10,000. (yesterday, I haven't replied back yet)


My question to you guys is am I being too greedy? What price would you sell a 4 letter word .co domain for? I feel like I should at least get mid five figures. What do you think?

for some context the .com is already in use by another company and they're not likely to sell, hence why I think they want the .co. instead.



I want to hear your thoughts. (Before I reply back to them)

If you are sure that the buyer is Billion Dollar public company then the sky is the limit as they often go to any extent to protect their brands. Some of the reported sales are mentioned by our friend that will give you a clue to negotiate.

A couple of recent sales :

eth.co 300k
leaf.co 89k
versus.co 75k
electra.co 50k
heyday.co 45k
novo.co 35k

But, negotiation is an art and here you have already blocked your ability to negotiate further by quoting 5 figures with which you must comply now. Assuming you have a strong financial condition and your domain name is really good and an exact match to the buyer. Below hypotheses may help you further:

What is big for you may be just one party cost to these companies, most of the time companies offer something we can not even think of, and therefore instead of quoting any figure like US$50K or US$90K you should continue your conversation and use that famous dialogue "Give me an offer, I can't refuse". Remember for them time is money and you have enough time. Ensure that you are polite and respectful in your conversation without irritating them or disclosing your figure, you never know if their next offer may surprise you.

All the best and love to hear a favorable outcome. Thanks

 

[Nomad91]

I think $10-k is a very good price for a LLLL co. The chance you take countering, perhaps losing the buyer, may in the end not be worth the risk. Let us know how things work out and good luck!

Thank you and I will do!

 

[pinkdragon]

An opening offer of 2,500 seems pretty good to me. An increase to 10k seems even better.

I think you're in a critical point now, where you don't know how badly they want the name. Also, it seems they are unaware of the .co vs .com traffic and email leakage But this thing might change if they decide to dig more.

My advice is to counter, but don't get greedy, make it 15-18K. If you lose the deal, God knows when you'll have a similar offer.

Of course, without knowing the name, somehow this is a "blind" advice. I would suggest you to send a PM to Brad, share the name with him and ask for his help / opinion.

Best of luck!

 

[blogspotter]

DOn't give a price. Tell them you acquired this for a personal saas project which didn't work out as expected and that you already spent significantly more than 10K into the project, and to give you a better offer that you might consider since you happen to love this name and had planned to launch another project, but if the offer is right you will purchase a cheaper name and invest the proceeds into your pet project

PS: If it is dictionary word, it doesn't matter if it is a 4L or 3L

 

[kor]

But, negotiation is an art and here you have already blocked your ability to negotiate further by quoting 5 figures with which you must comply now.

Does showing high-number sales examples hinder high-number sales?
What kind of contradiction is this?

Negotiation is no art at all. Trading is simply based on strategy and experience.

 

[GreatBrand.in]

Does showing high-number sales examples hinder high-number sales?
What kind of contradiction is this?

Negotiation is no art at all. Trading is simply based on strategy and experience.

This message was for OP as he has already hinted his preferred price in his earlier response.

I already appreciated your contribution by providing some past sales that will be very relevant to OP.

Btw, Negotiation is an art and there is a big difference between trading and negotiation. Thanks

 

[lock]

Give them a bin now high end of what you said as you already limited your options and this is doing nothing different to previous move and then puts ball in their court. I am not here to coach you as you already capped yourself but need to cold read to find anything out as offer no info.
You need to adjust strategy to keep the higher end of price.

 

[WingMan]

Write back appreciating their improved offer. In your initial email, you said you were after a "mid to high five figure". Continue along that line and do give them a mid to high five figure BIN. Don't delay your response and don't lie. Move quickly and act respectfully and honourably. Give them two weeks to respond. You can reduce your asking price to nearer the $10K if they don't respond after this time. If they walk away, hard luck, and maybe you should have accepted the $10K in the first place! If it's a dictionary word as you've said, you'll probably get another buyer in future, but there are no guarantees. All the best!

 

[zac3366]

Hey Guys,

So I received an offer from a billion dollar public company for a 4 letter word .co domain I own (LLLL.co) The domain is the companies name.

They first offered me $2500 for the domain, I declined, and replied saying that my selling price is in the mid to high five figures range ($xx,xxx)

They then adjusted there offer to $10,000. (yesterday, I haven't replied back yet)


My question to you guys is am I being too greedy? What price would you sell a 4 letter word .co domain for? I feel like I should at least get mid five figures. What do you think?

for some context the .com is already in use by another company and they're not likely to sell, hence why I think they want the .co. instead.



I want to hear your thoughts. (Before I reply back to them)

I am currently in a similar situation. But, I don't have any previous experience from selling domains. Imo, I don't think you are too greedy at all. If it's a billion dollar public company, I would ask for a lot more than what you already have asked. The two questions I would ask myself are:
1. If I act professionally and ask a very high price, are they likely to walk away without trying to negotiate it? If not, you don't have that much to loose?
2. The hardest question (for me): what price would I sell it for, knowing the "potential"?

 

[The Durfer]

$10k - $25k is a great price for a dictionary word in .co somewhere inbetween is the deal. good luck.

 

[sellbourne]

Take it mate

 

[Bob Hawkes]

There have been 26 .co sell (and listed on NameBio) for more than $10,000 over past 5 years. Here is link to set:
https://namebio.com/?s==YTMzgTN4czM

Most of them are words. Not sure if I missed if this is or is not.

$10,000 a good price, which personally I would probably accept. But, a big company, as @bmugford said is unlikely to walk away if you ask for a bit more as long as not crazy.

The advice about other options someone offered above is good to know as well.

I really hope it works out in a great sale for you!

Bob

 

[ForexTopNews]

I would say $25k, and negotiate from there. Between that and $10k is probably the target point. Don't lose them entirely.

 

[nononsense123]

Stick to your guns.. The generic bias of Namepros is to undervalue domain names (which is why this is a great platform for buying and quite bad for selling, only good for liquidating)

 

[bmugford]

Stick to your guns.. The generic bias of Namepros is to undervalue domain names (which is why this is a great platform for buying and quite bad for selling, only good for liquidating)

There is really not enough information to know if the domain is undervalued.

Considering even top tier .CO rarely sell for $10K, I think it would have to be a pretty amazing term to be "undervalued" at $10K.

You can try to extract more, but also factor in what is the likelihood of another $10K+ buyer coming along in the near future?

Anyone can make one random outlier sale. You have to play the likelihoods to have a repeatable business model.

Brad

 

[Joe123]

Hey Guys,

So I received an offer from a billion dollar public company for a 4 letter word .co domain I own (LLLL.co) The domain is the companies name.

They first offered me $2500 for the domain, I declined, and replied saying that my selling price is in the mid to high five figures range ($xx,xxx)

They then adjusted there offer to $10,000. (yesterday, I haven't replied back yet)


My question to you guys is am I being too greedy? What price would you sell a 4 letter word .co domain for? I feel like I should at least get mid five figures. What do you think?

for some context the .com is already in use by another company and they're not likely to sell, hence why I think they want the .co. instead.



I want to hear your thoughts. (Before I reply back to them)

It's been a week @Nomad91 - any updates? What's the latest? I'm sure I'm not the only one living vicariously through this negotiation :D

 

[nononsense123]

There is really not enough information to know if the domain is undervalued.

Considering even top tier .CO rarely sell for $10K, I think it would have to be a pretty amazing term to be "undervalued" at $10K.

You can try to extract more, but also factor in what is the likelihood of another $10K+ buyer coming along in the near future?

Anyone can make one random outlier sale. You have to play the likelihoods to have a repeatable business model.

Brad

Fair enough. But it's a billion dollar company. They spend 100s of thousands on the most trivial things we can imagine. Highly unlikely they'll walk away if asked 20-30k more