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

 

[eurorealtor]

Timeframe may be a good idea, but 48 hours is not enough time, especially around holiday. I voted no.

 

[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

 

[johnnie018]

Is the more nonsense following on from your very non genuine attempt to buy Maple.com? Stop big noting yourself!

 

[SuzanneChambers]

I think the only time the thread starter would make such an offer is when he knew it would not be accepted. Nobody serious about buying a domain would start a grandiose thread on a forum. The name is probably sex.com

He’ll come back and say the negotiation wasn’t successful and we can prepare for the next “look at me” thread. No way does this person have $1million to spend on a domain.

 

[Grimaldi7]

I guess youre looking to buy valuate.com. I think a million dollars is a lot of that domain name if that is what you’re looking to buy

 

[Jay Ha]

A time limit will make it harder for you to buy. Seller would assume that you're only after his domain and even if the time limit expires, they would still have the upper hand in counter offering. 2 motivated buyers in the 7 digits would mean to them that their domain is valuable and could fetch more.

However, giving the seller the impression that there are other possible alternatives will make it easier for them to sell. You can even look for -much- cheaper alternatives and approach their owners just so that broker gets informed of such activity.

Good luck!

 

[frank-germany]

always, always, always include "a valid only through ....."
but this should 4 weeks at least in this case

 

[wwwweb]

Question: how much do you believe what the broker tells you?

Because saying "available at this price for a limited time only" is a known sales technique, so is a discount for cash. Do you have any other source for knowledge of other offers?

And how much confidence do you have that info you supply to the broker, other than a number, is accurately relayed to the seller? Will seller fully understand it is a cash offer, and any limits you put on it?

If no time limit is set, what freedom do you have to back out? Assuming that what I say is relayed verbatim, I would just make the offer but say I will be reviewing it after 30 days in line with my other business plans, and say or imply that I reserve the right to withdraw the offer.

Well stated brokers bs all the time, then keep emailing your for years on end with lower proportions that they previously stated that were on the table. These tactics work with a certain subset, but seasoned pros who have patience, and don’t chase a deal can usually turn their desperation to their advantage.

I have seen this on the forums for years also with many people stating they have higher offers via anonymous PM’s. Sometimes it is true, most of the time, not so true.

I would say neither maple.com, nor valuate.com are worth a lump sum $1M valuation when making a non retail offer.

If I owned any of those two, $1M is advantage to the seller if the domains are dormant, and not operating.

 

[Kingslayer]

Not read the rest of the replies, so not sure if someone's asked this already, but $1 million for a domain as an investment?

Kinda skeptical whether this is really true or not, i have a feeling this thread is more for attention than a serious offer as no one would share an ongoing negotiation for such a big deal publicly.

If it is true though, i sure hope you know what your doing.

 

[MapleDots]

HeHe.....

There are a lot of guesses and assumptions in this topic that are not correct.

You can understand I cannot discuss the domain until negotiations end.

The thing I can say is I hope to have an answer either way in the next little while and then we can discuss why my offer to purchase was accepted or declined.

 

[MapleDots]

I'll release enough info to show this

I think the only time the thread starter would make such an offer is when he knew it would not be accepted. Nobody serious about buying a domain would start a grandiose thread on a forum. The name is probably sex.com

He’ll come back and say the negotiation wasn’t successful and we can prepare for the next “look at me” thread. No way does this person have $1million to spend on a domain.

Mr so called new member

There is only one alterior motive here and one does not have to look far to see it.

 

[Brands.International]

@MapleDots, but is it worth mentioning that you have 1 mil of USD, or of whatever currency ? I better do not imagine number of PMs you are getting now - it must be dozens / day I guess

 

[Bob Hawkes]

I have not been on NPs so much the last few days and just read this thread now. Let me first of all say that I would not just be sleepless a few nights but forever!

Anyway, I know you asked people to just focus on he question. I would place a time limit - I mean with conventional real estate offers one always do that and it protects from being held unsure with so much committed for too long. I tend to agree with @frank-germany that while you need a time limit that for something of this magnitude 48 hr is much too short. I understand your argument about preventing shopping around with the offer in hand, but it is a short time for such a major, both sides, decision.

Apart from the central question, I assume that you have got as much intelligence as possible about the potential seller, and have thought through the business plan in every way possible. I am nervous for you, but best wishes @MapleDots.

Bob

 

[maksimfa]

Okay, ignoring whether paying $1 million for a domain is stupid or not...

Yes, you always make an offer with an expiration date otherwise you will get dragged on and technically on the hook indefinitely.

Do you have proof of funds? Have a banknot your investment manager come up with a letter stating you have the money available for x purchase price and submit it with an offer.

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

 

[MapleDots]

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

@maksimfa that is exactly what I was thinking

 

[maksimfa]

@maksimfa that is exactly what I was thinking

Glad I can help. Also work as an investment advisor so this is generally how every deal over $500k is worked or structured. Proof of funds with offer for them to accept, the hen appropriate due dilligence period which is exclusive, to its option to extend due dilligence if necessary.

You can also offer to put funds in escrow at the time the offer is accepted and you enter dd.

 

[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.

 

[maksimfa]

So

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.

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.

so here is a question...

1. As a domain investor... would you be willing to pay $1 million for the name? Or are you only justifying it for your business?

2. Is this going to be a plug in for existing business to upgrade to a better name or were you planning on starting a new business, in the same field as your others, around this name?

3. Would you be better off on an ROI perspective to purchase a name in the $100k or less, and invest $900k into marketing dollars (sponsored posts, affiliate programs, adwords, sending out free product) versus how much extra traffic will then convert into sales purely because of the name? Feel free to pm me and can discuss.

4. Backup plan... if your plan fails or the market shifts... is this $1 million domain worth $1 million?

I will give you a scenario....

I run a few regional forums, one is approaching 10 years old and we have a Geo + X + forum .com. Over the years, we just refer to it as XXXX... which also happens to be an available .com for sale.

By itself, it is just a crappy to mediocre 4L.com.... of which we already own the .org along with the full domain name. Do I pay $x,xxx to merely have a 4L acronym? Or do I spend that money on the community and grow it? To the seller it is just a 4L.... so should I overpay? There is no right or wrong and I am for now chosing to wait until it inevitably gets down to mid $xxx.

For your $1 million com... is it currently parked? Or is there an actual business running on it? Would you be able to find others to do the same?

Beyond that, we are entering into what I believe (along with many other financial professionals) to be Financial Crisis 2.0... and this one will be far bigger... think Terminator 1 vs 2... =P The domain market will be hit and folks will get desperate. The best thing you can have is cash in your wallet.

 

[indiegrind]

I'm not going to judge the value of this domain to your business. I think for a domain investor to say a domain is "not worth it" to a business purpose end-user says the investor really doesn't get it.


I wish you success with your acquisition and business.

 

[maksimfa]

@MapleDots and BTW... you have to ignore all of the posters who are merely shocked by $1 million figure and you have to throw that out. You have to look at the $1 million from the ROI perspective. What will it return to you in the future.

In the grand scheme of things, $1 million for a business is chump change and for many others a rounding error.

If you are looking at it simply as $1 million for a web address, a domain.... that was once $10 to register... then you are never going to buy it .

Also, perhaps may be worth it to find a broker to represent you? Once the buyer knows you are the end user... game over.

 

[domainer111]

A lot depends on how much you think can sell it on for @MapleDots . I understand the decision is causing some angst which is necessary.

Let's say it's worth $2M. But you already have at least 1M so do you really need another M? Only you can make the call!

I would definitely put a timeframe on it but make it generous so as to avoid pressuring the seller.

 

[MapleDots]

Also, perhaps may be worth it to find a broker to represent you? Once the buyer knows you are the end user... game over.

I already have all the domains I need to be an end user, this would be a conquest domain and one I can develop around. It was a one off offer, if declined I am done and it will be a cold day in Hades before I make a similar offer on another domain.

You also make some compelling points in post # 118 and some of them are difficult to argue with.

@indiegrind brings up a compelling counterpoint

Now I am very happy I posted this because I am getting the advice and responses I was looking for from my friends at namepros

 

[MapleDots]

Let's say it's worth $2M. But you already have at least 1M so do you really need another M? Only you can make the call!

I'm going to use humor to answer that
https://www.namepros.com/threads/crap-costing-thousands.1113191/page-3#post-7015252

 

[xynames]

OP created another thread where he came in and crowed about making a couple hundred K offer on a domain that was being offered for much more. That sale did not close and neither will this one.

It’s sometimes fun to watch the thought process and read the comments but otherwise nothing substantive is going to come of this.

https://www.namepros.com/threads/100k-domains-are-you-a-buyer.1104236/

Over the years I’ve seen Ferrari Daytonas offered for sale including even at eBay. For such cars nowadays people do come in and bid a hundred or two hundred K or whatever but they must know that the bid is unrealistically low and won’t happen.

There’s a big difference between placing a high dollar bid that might close and one that will never close. Such bids might be in complete good faith but still amount to just dreaming.

BUT from the man who posted that there is a “Worldwide Shift Away from dot com” I shore doe hope that this million offer is for a dot ca and not a dot com!

(Which, incidentally, his couple hundred K offer WAS for Canada.com)

 

[maksimfa]

OP created another thread where he came in and crowed about making a few hundred K offer on a domain that was being offered for much more. That sale did not close and neither will this one.

It’s sometimes fun to watch the thought process and read the comments but otherwise nothing substantive is going to come of this.

https://www.namepros.com/threads/100k-domains-are-you-a-buyer.1104236/



BUT from the man who posted that there is a “Worldwide Shift Away from dot com” I shore doe hope that this million offer is for a dot ca and not a dot com!

It's funny...

I just attended a gun auction where there was an original, authenticated Colt Walker Revolver, circa 1847. It was attributed to the Texas Rangers and was in a safe for the last 60 years. There are only 35 or so of these guns known to currently exist.

The last two of these went to auction and sold for around $800k and $1.2 mil. The hope for this gun was at least $700k.

So during the auction... I was not planning on bidding on it, but came really close to offering $100k.... thinking worst case would not be a big deal and likely would not win it anyway. But... I was there for other items and this firearm was out of my niche for collectibles and did not do enough DD on it.

To my surprise... the hammer dropped on it at a mere $110,000.

Someone got a REALLY good deal on the gun as the auction house did not do a good enough job advertising it. They can now easily 5x their money.

The moral of the story is this... you never know, that low offer just may be accepted.

(and yes, I did walk away with a very nice rifle for more than 50% off street price. )