Large corp wants to buy my domain

[Cruth]

I own a domain that is NOT a generic word, but instead a great word I made up, related to my existing business. (Sorry, I cannot disclose the domain, but please just assume its just some non-sensical, nice-sounding made-up word like like Effexor Google or whatever. )

I have been approached by an agent for one of the largest corps in the world, to buy this domain. The agent does not know how much I know. (I am 100% sure who the corp is.)

Because they know I am the legitimate owner, they want me to name a price. The corp has probably invested many millions in developing this product.

Anyway, I want to figure how how to estimate how much they might be willing to pay for the domain without just deciding to change the name of their product.

Does anyone know of a situation where a corp named a product, applied for a trademark, then had to go out and buy the domain name from someone who already bought the domain for their own business, which is in a different industry?

Any suggestions?

Thanks in advance.

Cruth

 

[RJ]

It sounds like you're in a great position.

Anyway, I want to figure how how to estimate how much they might be willing to pay for the domain without just deciding to change the name of their product.

No one except the potential buyer can know what the domain is worth to them, so its probably going to come down to how well you can negotiate. Don't appear to eager to sell and don't be afraid to name a price that is very fair to you. If they have already named a product this and applied for a trademark, and you have a strong case where you have legitimate rights to the term, its not likely they are going to walk away from a negotiation at the first chance.

There are ways of feeling out a potential buyer's price range. Passive questions like "Does $40k sound like a fair price?" can often get a reply that lets you know where they stand. If you do get a no-reply, you can follow up in a few days with another email.

I'm hoping some other experienced negotiators can add their advice here on how to feel out what a potential buyer's value on a domain is.

Best of luck, and welcome to NamePros!

RJ

 

[danielr]

The first thing I would do is by the same name in the .net and .org and possible the .info. And maybe variations of the name depending how it is used.

Then I would pull a "GENE" on them and tell them you had plans to develope the name and not motivated to sell at this time. Wait to see how much they increase their offer.

 

[CrazyTech]

You're sitting pretty in this one my friend. I'd first check to see if they own a TM on the domain. As RJ said if they do you probably still own the domain because you registered it prior to the TM. I'm not going to give much advice here since I've never been involved in large scale negotiations but put on your internet poker face. Don't be afraid to go high to start out and work from their. If they truly have this much interest in the domain then you are indeed sitting very pretty.

 

[cjcjcj]

Get something on your site asap if there is not already - even if it is just a blog named after the domain name about your life!

This will add to your case for needing it for genuine reasons.

 

[jayl]

I don't think anyone could throw a ballpark figure on a domain we don't know. The main thing is to be professional about it. Don't drive them off but don't let them take advantage of you (they'll try!). If you don't want to come up with a figure tell them that you have not considered selling the domain and you do not want to sell it but for a high enough price you'll sell. Their first offer will typically be low, so politely decline it, and if they don't start rising to your expectations quickly tell them that you are looking for more. If they won't budge, tell them you wish to keep the domain, then give it a short period of time, and if you hear nothing back, and you want to accept their offer, call them back and say you've reconsidered.

The best approach is to keep an eye on all activity while doing so. Keep up with any breaking news on the company, or rival companies and new products/technologies/etc. Look for similar domains and see if they're being bought by the company. If they're going around buying a lot of domains for the product, they're likely to be serious about using it and are likely to pay you serious cash. As someone said, see if they've applied for the trademark, as they are unlikely to turn back if they have reached this stage (it'd be cheaper to just buy the domain from you).

Most importantly, best of luck!

 

[JoshHendo]

if it is a BIG corp (eg: google) put a big price on the domain name so they can negotiate a bit and you get as much as possible. That is all i can say!

 

[ThreeD]

if it is a BIG corp (eg: google) put a big price on the domain name so they can negotiate a bit and you get as much as possible. That is all i can say!

I would do the same thing, put a high price tag on the domain and start negotiating

 

[MistaPrimeMinista]

Sell it for a dollar !!

Youd be their hErO !

LOOL

 

[ApeXX]

Sell it for a dollar !!

Youd be their hErO !

LOOL

Some people just scare me...

 

[EbookLover]

Sell it for a dollar !!

Youd be their hErO !

LOOL

No actually, you'd be very dumb to even think it right now.

1. I, too, think it is best to play the "I was never looking to sell the domain" bit. Just tell them you'd consider a sale for the right price. However, don't let them make you name a price, let them name the price and then reject any amount they offer and do not settle for any first offer unless you think it is really fair. They came to you, let them name the price. Don't get into to much "negotiatimg". You most likely cannot compete with them in that area. SAay nothing about nothing. It's nmone of their business, but try to get as much info from them as possible. Let them name the price then refuse and counter offer at 3X. If it's a no go, then it's a no go. Their loss. Unless you regged this domain because you saw it coming, then you lose nothing as you never thought it would sell for so high to begin with. Do keep in mind though that aside from this company, the domain is virtually worthless as you describe it, so be realistic.

2. All money paid up front before transfer, no matter who the company is. And do not accept "stock" in the company. Money only. Stocks are not worth crap if you have no clue how to use them properly. Invest your own cash in your own ventures as you please. Don;t get suckered into the "half cash, half stocks" deal. You cannot trust any big corporation. They have legal departments designed to screw those without legal departments. Just ask Black and Decker Corporation (makers of DeWalt tools). Be careful and do not be fooled by the fact that they are a well-known corporation. That does not mean that they are honest. Usually the opposite.

3. Depending on the selling price, get a lawyer. IF 100K+, I'd get a lawyer. It'll most likely cost you 35-40% but it is peace-of-mind.

4. Don't plan on the sale taking place any time soon.

5. GO and secure the domain for 5+ years. today.

6. Good luck.

7. Good luck!!!

 

[jeter4982]

I would recommend making a huge offer such as $500,000 at first. They will most likely reject this, and offer somewhere in the neighborhood of $2,000. You know they need this domain, so tell them you are looking for at least 6 figures, but are probably just going to develop it. It may take awhile, but eventually they will most likely make an offer in the $100,000-200,000 range. Good luck!

Tom

 

[TheMassCalProject]

could it be that person running that scam? Dr. Sarah somthing

because I had someone ask me to name a price too...

 

[DropLister]

could it be that person running that scam? Dr. Sarah somthing

because I had someone ask me to name a price too...

He sounds pretty sure its a corporation, good luck with the sale, hold strong snag that five figure sale!
:wave:

 

[TheMassCalProject]

oh ye for sure good luck, I wish him all the best.

 

[Wanda]

I love nice.. made up domains.. they are truely "unique".. and there is only one like it in the world..

best of success with your sales negotiations.

 

[floatingworld]

the bottom line is to close a deal ....assessing this baloney domain's name to you indicates that its residual value is ~ $25...so do not pussy-foot around...be professional and firmly ask for $15000 + escrow fees.

 

[EbookLover]

15K? That's nuts? Way too low to start of negotiating. You know hat if you offer only 15K you will only end up receiving about 1-3K if you're lucky.

 

[TheMassCalProject]

I say start at 30,000 - 50,000