discuss My first $1,000,000 offer to purchase

[MapleDots]

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

 

[biggie]

I think

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


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

imo...

 

[domain hacks]

Sorry, but you sound like an insecure teenager in this thread,asking for advice with poll included. Yes I know this is a forum, but to reach $1,000,000 offers you need to be a serious business owner who knows what he/she is doing....this way people, that do not know you, will start asking themselves if your story is a real deal or just some kind of self-promotion..

 

[MapleDots]

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?

 

[Recons.Com]

As members of a community, it is almost always bad idea to attack thread-makers and focus on whether the topic is fake or real.

I ran a forum myself since 1998 and it was a top website for a country and one of the rules I eventually set there was to never shift the topic to the OP and attack/question him personally.

We should all be grateful for great topics he and others are creating for us to discuss, otherwise we would be reading only the recent handregs for fortune threads.

I personally don't doubt even for a sec that MapleDots is a genuine buyer, given his recent premium name purchases and his business acumen. But even if I did, it would have been irrelevant. Even if this thread was imaginary, it would still be useful exercise. And if it is not, just ask yourself: how often anyone shares the process of the acquisition live with us for a million dollar name? So why to discourage?

In short, even if it is not NP rule, let's just agree that it is for common good to focus on a topic, not its author.

 

[Keith]

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

 

[HFT]

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.

 

[garptrader]

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.

 

[indiegrind]

If it is for your business, and you believe that this domain will be transformative to your business and critical to your success. Don't play games or be cute with offers and turn off a unmotivated seller.

Get the seller on the phone, build a repoire. Let them know you're serious and would appreciate any consideration. Try to get a number from them if they haven't already shot you a price.

Don't rub them the wrong way by putting some arbitrary time limit on your offer to rush them. This is a big domain obviously. Offer expires, then suddenly you are in a position of weakness and have to either show your bluff and come higher or move on.

If he isn't at your price yet. Talk him there. Build a relationship and make him want to make the deal.

 

[MapleDots]

Going over these posts it seems that some people give their opinions without relevant facts or experience.

Well I guess that is what forum discussions are for, there are always opinions and I knew the risk going in.

That said my decision on the time limit has been made

I have decided to go with this approach...

Seller has 48 hours to accept or reject, if accepted you would enter a 1 week due diligence period.

Thank you @maksimfa this one makes the most sense.

I will start the time from when I hear back from the broker at which time I will ask her to formally present the offer to the owner of the domain. I will offer her a 10% deposit to show I am a serious buyer. Only then will I start the clock on my offer because it would be silly to start over the holidays.

I will say up front clearly on the forum that it is a single offer, I have no intention of raising. The outcome will be decided solely by the broker, no tricks, no shenanigans, if the broker says yes then we have a deal. If the broker says no then I move on and that is that.

In closing.... a million dollars is a very serious offer to me. It might not be for someone else or a big corporation but to me it is a serious commitment and I will stand behind it if the broker accepts.

I wish I had more funds and able to raise the bid but the fact remains that I cannot take a larger risk using my business funds. So to anyone trying to read any more into this, it simply is what it is. An offer, a negotiation and an outcome. If you want to criticize and accuse me of something please do so if the broker accepts and I back out. Other than that I have no control of this, I simply state in my post that I am making my first million dollar offer, I made no other claims of grandeur.

Fact...

I am very nervous for a YES

I will be disappointed for a NO

Either way I am not making that decision, it will be made by the broker and the outcome will be posted in this string.

If I win the domain I will be called an idiot for spending that much on a domain.

If I lose the domain I will be accused of making a pretend offer.

Either way I cannot really win with the more vocal members but that is what you get when you post on a public forum. Will I refrain from doing so in the future?..... hehe, probably not, I am a glutton for punishment.

 

[MapleDots]

you are all over the place on the forum.

I used to own my own forum with about 5k members. I try to post a couple of articles per day to stimulate conversation. Sometimes a little controversy does boil the blood and keeps the forum busy. I don't mind members giving opposing points as long as the attacks don't get too personal but honestly I am just trying to stimulate conversation.

Quite honestly I never expected the topics to trend the way they did
I started today posting one article today as well and hopefully it does not trend because I'm not comfortable having so many topics of mine listed on the side.

I see your point, I'll refrain from opening any new topics for a while until the topics disappear off the top lists.

I'll keep this topic updated though but at this point I'm beating a dead horse even here, there will be no news until after the holidays on this.

PS. I am on holidays with the kids until the end of the week so there is no point adding a deadline until everyone is out of holiday mode.

Have a Merry Christmas everyone.

 

[MapleDots]

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.

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.

 

[MapleDots]

Here is my timeframe

1. I have made personal contact numerous times with the broker.

2. I have made a significant offer to show intend.

3. I was declined saying broker want's (x) amount.

4. Broker informed me officially of high bid, says current bidder needs payment plan.

5. Broker informed me they are instead looking for a one lump payment.

6. I have decided to come within range of the competing bidder but in a lump sum instead of payment.

7. I have re-contacted the broker asking if they would take my offer for said amount.

8. Broker has not responded back and it will soon be 24 hours.

9. I have made an allowance for Christmas holidays.

10. My intention is to do exactly what @maksimfa is quoted in post # 115 once contact with the broker has been re-established.

11. It is my sincere intend to purchase this domain and I am in range of the current high bid but this is truly the maximum I can offer. It will be a business deduction for me because I do run some successful online stores and I feel this domain could help me with some of these ventures.

So why did I post this topic?

I consider namepros to be my home to discuss domains and I have a lot of friends here who's advice I do truly appreciate. I have a long enough history on namepros to understand there will always be critics when one makes a topic like this and I take that all in stride.

I'm actually a bit nervous about all of this, for one I really want the domain and if it sells for that amount I want to be the one to get. I don't want to say to myself I had the chance but was too scared to go for it. I have taken significant risks in my life and this one will either go down as astronomically stupid or brilliant. Quite honestly I cannot say at this point where it will fall but nonetheless it's going to be a nail biting end to the year for me.

PS. I am truly hoping this sale goes through because there is also that small part of me that I'm trying hard to ignore (unsuccessfully) that wants to silence all the critics. However I'm smart enough to understand the tone will change from you cannot afford this and you are bluffing, to you were stupid to do this and the domain is not worth it.

 

[maxtra]

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.

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

 

[HFT]

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

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.

 

[biggie]

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.

you don't think.... you are that far apart, but do you know, how far apart you really are?

and....

the domain can be worth a mil to the seller, based on inherent value or income earnings, even if you don't make an offer on it.
so that statement is untrue

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?

yes I voted "other"

and yes, you should expect comments like mine, if their are people here, with like minds.

either you're going to do it or you ain't.
and until you actually do make the offer -

then.... i'll be puff, puff, puff'n

imo….

 

[D Haynes]

The thing is...

For almost every single person reading this thread the question is hypothetical as they will never be in your position. What we say we would do and what we would actually do if it really was our money may be two different things.

To be in the position to be able to spend that kind of money shows you already know what you're doing.

Without disrespecting the members here, I think you should be asking people that have been in your position. You'll likely learn a lot more from them.

 

[bmugford]

Any domain that is worthy of a seven figure offer has no doubt received countless serious offers in the past.
Playing hardball doesn't work that well when someone has an asset they know is valuable.

Still, you have to set some type of limit vs. just leaving an open offer on the table.

There is no reason to set a hard deadline in my view as it is not likely going to compel someone to sell a top tier domain. It should be clear in short order if you are even close on pricing or not.

If you do set a limit, I would not do it with the opening offer.
I would wait until you are at a point where a deal might be possible.

Brad

 

[dande]

Firstly: I just have this funny belief you are not about to make any 1million USD offer.

Secondly: Make your offer with no time frame attached, unless you don't want to buy. Else, if the seller did not adhere to your time, you will look stupid. Let the negotiation go on naturally, unimpeded.

Thirdly: No one starts an offer with $1,000,000 unless you have $100,000,000 budget for the domain. Are you making the offer directly to a broker or to the seller? Have you made previous offers, starting with smaller amount?

No congratulations until the deal is closed

Goodluck bud

 

[MapleDots]

Thank you so much @Recons.Com

It's very simple, I'll post the brokers response.

If the broker says I want 1.5 mil then the conversation is over.. simple as that.

I went back over my broker string and found a couple of inconsistencies so I am no longer sure I'm not getting a bit of a run around. I was told in one string there was a current offer just over a million (on a payment plan) but when I was offering about a quarter million I was told there was an offer twice that.

So in retrospect I have two completely different stories.

Additionally I emailed and asked if a million straight would buy it and I have not received a response. Radio silence so I asked someone (a domainer) who knows this broker personally to help me re-establish contact.

So I have not presented any time limits yet.

That said in all transparency the broker did say they would like to see over two million for the domain but we all know what asking and getting actually means.

So basically with a million offer I am at double of the 500k the broker said they had in one email.

Also at 1 million I would be just under the other offer the broker had which was supposedly just over one million but on a payment plan and supposedly the company asked for a single payment.

So like @Recons.Com said, I cannot be more clear and more transparent in this, I personally don't understand why so many people are having a hard time with this. I cannot offer more than that to the members.

For clarification the broker did say they were looking for just over two million (the just over part was probably the commission) but getting and wanting are two different things.

Now as far as what business may or may not be running, or has been running on it, that is irrelevant because the business is NOT for sale, just the domain is.

Enough information?

I did not say I was for sure winning the domain in my opening post, I clearly stated I was making my very first million dollar offer. I also asked fellow members if I should put the offer on a time limit or not.

That question has been put to rest and I have posted my decision.

I'll keep everyone tuned, when I hear anything more.

 

[MapleDots]

Update

The broker has been contacted Dec 22, I have not received a response back, I am leaving for Holidays with my kids (great wolf lodge resort) on the 27th and back sometime on the 29th.

I am a bit surprised because I emailed asking if 1 mill would buy the domain and no response, not even a no. So it is sending mixed signals to me especially because I usually got a prompt response.

It is the holiday season and therefore possible the broker is on holidays or something so I am not going to read anything into this at the moment. Although if I was a broker I would certainly be connected even during the holidays.

That said, I will probably wait to the new year to place a time limit on my offer because I don't want to burn any bridges. The company that owns the domain may also be closed over the holidays and I certainly don't want to posture and lose it because I was bull headed.

So have some patience, I will post when I think I have a reasonable chance of getting the domain and when I think the company is open to formally receive my offer. Only at that time will I place a limit on it, because what is the use making an offer with a time limit if there is nobody there to receive it. I would probably jump in and do just that if I did not want the domain and was hoping for a turn down. It is precisely BECAUSE I want the domain that I am waiting for the best time to formally make the offer.

I will not limit my chances because a member is impatient for an update. I will do what is best for me and what I think is the best time frame for me to achieve my goal of attaining the domain. That may be at the beginning of the year when the business is fully open with all the decision makers on staff.

 

[xynames]

I was asked several times for a letter of intent - I basically responded that I was a domain investor and my intention was to either monetize or resell the domain. I think that might also have made a difference because to me it almost sounded like they wanted to know exactly what the end use of the domain was going to be.

A letter of intent is not a statement of what you “intend” to do with the domain - it is merely a common business expression referring to your putting in writing your intent to follow through with whatever you are proposing as long as certain conditions are met.

In your case your letter of intent would have stated that you offer to pay $1m with 500k down and 500k payments for the domain if certain conditions are met. You’d outline whatever contingencies you’d want to make your offer contingent to - for example clear title, transaction and payment via escrow, and (in your case since you wanted to put a time limit on the matter) acceptance and placement into escrow within a certain time, etc. Also you’d outline your payment terms.

Or, instead of outlining everything in detail, you could make it more general or open ended - just state that your offer is contingent to buyer and seller coming up with mutually acceptable payment and transfer terms.

If I were presenting a letter of intent for this deal I’d make confidentiality a condition of it so that it wasn’t used by the broker or seller to shop around other offers (showing it around to induce others to offer more).

 

[maksimfa]

That exactly why I am going to seek the help of a broker next time.
These type of bigger deals require the pros, I'm used to doing business on a handshake.

I will say though.... a few members came to bat and really helped me on the back end and some of the information provided got me to doubt there was any real significant offers on this domain to begin with.

Time will tell, I'll update here if they come back to me or if the domain sells to another party.

I would not quit just yet.

The executive office does not always go for the best price... they sometimes go for the cleanest deal.

I would go ahead right now and put together your Letter of Intent, make it very specific and VERY CLEAN... meaning very few contingencies on your side, provide full proof of funds.

The broker will have to take it to their client and typically the client, in their fiduciary duty has to present all written offers to the board.

If you are offering a damn near certain sale at a lower price, versus someone who will give them the full 1.5 but has many outs, lack of funds, etc... they just may take your offer to be done with it.

 

[DomainRecap]

* activates email alerts on my iPhone...

 

[maxtra]

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.

$1M to $35M would be a good flip to me