Epik Escrow

My first $1,000,000 offer to purchase

Labeled as discuss in Domain Selling and Domain Sales started by MapleDots, Dec 22, 2018.

Replies:
277
Views:
15,652

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Should I attach a time limit to my offer to purchase?

  1. No - Make an offer with no strings attached

    30.4%
  2. Yes - Set a time limit to add an urgency to the sale

    59.1%
  3. Other - Specify in topic

    10.4%
Total: 115 vote(s)
  1. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    I am about to make my first One Million dollar offer to purchase and I want this to go a smooth as possible.

    I have asked the advice of a couple of my peers on how to best proceed with this but I thought I would also put it out to some of the members on namepros.

    My usual way of doing business when I go after a domain is to attach a time frame to the offer to purchase, but to be quite honest this one is kind of in a league of its own and I have to be careful how to pursue this.

    My plan is to offer 500k down and 500k when the deal closes.


    What do you guys think?


    1. Make an offer with no strings attached

    or

    2. Set a time limit to add an urgency to the sale

     
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  2. johname

    johname Planet Futbol VIP ★★★★★★★★★★

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    If you already inquired on a price from them, and they quoted more than a mil. And you are counter offering. I would put a time limit on the offer. Good Luck
     
  3. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    I think

    the amount is irrelevant to us
    because
    only a successful transaction counts


    and offering a mill ain't :poop: if the seller wants 15 mill

    imo...
     
  4. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    I don't think I am that far out with the seller, and a million offer is a great offer for any domain. You can ask but it's only worth it if someone actually makes an offer.

    I'll tell you one thing for sure.... to make an offer of that size is a nerve racking decision and I lost a few nights sleep over the decision. There is always the possibility that the domain goes nowhere after the purchase.

    I understood I would get comments similar to yours when I made the post but an offer of that size is relevant on most domains.

    That said.... did you vote?
     
  5. Keith

    Keith Top Member VIP ★★★★★★★★★★

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    I would offer the full amount via escrow.com and use concierge service.
     
  6. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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    Time limit..my choice!
    (1) It is your style, do what you are comfortable with.
    (2) Personally, I find a time limit helps speed the decision making time..

    (3) If time limit passed.and domain still available..get a "broker" and raise the price (if you want domain bad enough)

    I do this a lot with real estate (conditional sale) and appreciate offers with time limits..of course..never played the game at pro level (milion+)
     
  7. maxtra

    maxtra Upgraded Member Gold Account VIP

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    I can only hope I will be asking a smiliar question someday :xf.laugh:

    I would agree with a time limit offer and escrow CS transaction

    Best of luck with it (y)
     
  8. DomainRecap

    DomainRecap Established Member

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  9. Internet.Domains

    Internet.Domains Top Member VIP

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  10. garptrader

    garptrader Top Member VIP ★★★★★★★★★★

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    What do you intend to do with this domain? Hold it for resale? Build a business? ???

    Yes, there are occasional end user acquisitions in the 7-figure range but domain investor acquisitions in that territory are rare.
     
  11. draco

    draco Upgraded Member Blue Account ★★★★★★★★★★

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    Ask yourself:

    How badly do you want the domain?

    How much will putting the million 'on hold' inconvenience you?

    Are you dealing with a large corporation, small company, individual?

    That being said, I would put a time limit on your offer. You can always extend it if the negotiations are going well and they ask for more time.
     
  12. HFT

    HFT Established Member

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    Personally, no matter how good the name is not worth it buying a $1 mm. dollar domain, it's a domain after all. Better to buy 40 $25k domains.
    You most probably will get many times the value out of lower priced but multiple domains.
     
  13. maxtra

    maxtra Upgraded Member Gold Account VIP

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    So if a name like insurance.com was on sale for $1M, it would not be worth the price tag?

    :xf.rolleyes:
     
  14. DomainRecap

    DomainRecap Established Member

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    Not just for the domain name, and not for resale.

    If it's for the developed site + TMs + customers, then you have a starting point.
     
  15. maxtra

    maxtra Upgraded Member Gold Account VIP

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    $1M to $35M would be a good flip to me
     
  16. HFT

    HFT Established Member

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    It's a hindsight bias to think that insurance.com ended up being so valuable. It's all about market conditions, NASDAQ has already entered a bear market and it is likely that liquidity may dry up, henceforth making niche assets like domains fall in value. And in context of OP's total net worth if they are worth a hundred million it would a 1% of their networth but not worth tying up 20-30% liquid networth into a single domain. Regardless of the domain name, rational financial planning is first. Cash is king.
     
  17. DN_Hunter

    DN_Hunter Top Member VIP ★★★★★★★★★★

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    First of all, congratulations on being able to make that type of offer for a Domain Name! Is it just the Domain Name, or is there an established site that has a revenue stream?

    I voted for a time limit as even things outside of the Domain Name Market have time limits (offer on a house, buying a business, etc...)

    Good Luck with your purchase!
     
  18. maxtra

    maxtra Upgraded Member Gold Account VIP

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    I get your point about diversifying, but if there was a single deal on the market like that I would not mind taking that risk

    Thanks
     
  19. MrAcidic

    MrAcidic Upgraded Member Gold Account VIP

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    I voted "No - Make an offer with no strings attached"

    Any large deal has complexities surrounding it (legal points, negotiations etc etc). Put the offer out there and see what the response is.

    If you try and put strings in place before opening a dialogue then it might add a few $$$$ to the equation. Once you are engaged you can start to add in some caveats

    "Most big deals are built on a series of smaller ones"
     
  20. HFT

    HFT Established Member

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    If it were to be a 10-20k domain, sure a risk worth taking, but when the number is big, it's more difficult to offload that type of name for the same amount or even much less if the need arises.
    There are better safer alternatives.
     
  21. DomainRecap

    DomainRecap Established Member

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    Do you really think that just the domain name is worth $35 million, when the next day all the design, content and customers lists of the current Insurance.com immediately pop back up on a similar URL?
     
  22. maxtra

    maxtra Upgraded Member Gold Account VIP

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    It is not worth $35M to me, but I am not in the insurance industry
     
  23. .X.

    .X. NameFeature.com Gold Account VIP ★★★★★★★★★★

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    I would make the offer with no strings attached, This a million dollar purchase, so you will gain leverage as the transaction comes to a close, I think the seller will become more motivated once the sale is initiated and small details or requests by yourself can be established at that point.
     
  24. DomainRecap

    DomainRecap Established Member

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    I'm just saying there is a huge difference between paying $35 million for just the domain name and paying $35 million for the entire Insurance.com business + TMs + customers, etc.
     
  25. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

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    Great response @.X. but my only concern is that my offer will be used as ammunition to solicit a higher offers from other parties. That is why I am thinking of putting a 48 hour time limit on the offer so that it cannot be advertised on multiple other channels as having a million dollar offer.
     
    Last edited: Dec 22, 2018

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