.tv Negotiation

[Ammudamus]

Fellow NPer's,

I thought it would be useful for NPer's that have conducted negotiations on the sale of the names to list some of the things they look at when negotiating. Obviously, the buyer's objective is to get the name for as cheap as possible, while the seller would like to reap as much intrinsic value that they see (sweat equity, development costs, ad revenue, etc). A few questions:

1.How do you manage expectations of the seller?

2.Are there any ways to determine if you are selling for too cheap?

3.What indicators do you use to obtain value? This is tricky since appraisals and value is in the eye of the beholder. Are you using market data /websites to determine the appeal of a name (e.g. generic, market potential, possible ad revenue, etc)?

4.Since .TV is has quite a bit of end user development involved in the extension, how do you approach the traffic question on your name if there is none? Has this been an issue?

5.Can you factor in the future value of a name in today's market with this extension?

6.Lastly, any memorable pointers in this process that we should keep in mind?

Would love to hear some thoughts!

Thanks in advance,
A

 

[MicroGuy]

I try to keep in mind that the buyer has no option but to buy the desired domain name from "me". For example, there is only one QWERTY.TV and if a buyer wants that particular domain name, they have NO CHOICE but to deal with the current registered owner.

Then, it's just a matter of "how bad do they want it"? I have found that getting the price you want is usually a waiting game. My biggest sales have been to the original bidder a year or two after their first offer.

I hope this helps.....

 

[Ammudamus]

Micro,
Thanks for the feedback. Interesting point.

A

 

[SKG]

I thought it would be useful for NPer's that have conducted negotiations on the sale of the names to list some of the things they look at when negotiating. Obviously, the buyer's objective is to get the name for as cheap as possible, while the seller would like to reap as much intrinsic value that they see (sweat equity, development costs, ad revenue, etc). A few questions:

1.How do you manage expectations of the seller?

In .TV this is difficult because seller expectations are high, imo. If you really like a domain, then to kind of offset this, do not start with the lowest bid possible. Start maybe with the next to last amount you would pay. By doing this the seller has to really think. Leave yourself room to make one more offer. No reason to start at 60 and then adding 50 each counter. Also, I would add that in dealing with a seller, don't waste time buy offering let's say max 100 dollars on a domain like games.tv, your not going to get it. Listen, it boils down to this.....95 percent of buyers or higher do not have the pockets deep enough to pay you what you want and you need to take that into account because TIME is a huge function in this. If you as a seller have deep pockets to wait it out then just maybe you will get what you want. When you are a buyer you must think as a seller and vice versa. Carrying large portfolios only makes it harder for the seller.

2.Are there any ways to determine if you are selling for too cheap?

If you make even a dollar over your cost, you are not selling too cheap, you are selling with a profit. The would have, should have, could have, means nothing.

3.What indicators do you use to obtain value? This is tricky since appraisals and value is in the eye of the beholder. Are you using market data /websites to determine the appeal of a name (e.g. generic, market potential, possible ad revenue, etc)?

Previous sales, consumer value versus business value and the size of that market, current overture, expected overture if it is new, ie Macau, amount of developed extensions in that arena, length and understanding of topic.

4.Since .TV is has quite a bit of end user development involved in the extension, how do you approach the traffic question on your name if there is none? Has this been an issue?

No, not an issue to me. Of course traffic helps and those domains that have built in traffic continue to see a rise each month. If the domain is trafficless and overture is high then it has potential and you need to explain that. The extension is still catching on so it takes time when you are looking at tier 2 or tier 3 type keywords.

5.Can you factor in the future value of a name in today's market with this extension?

I personally think .com and add some. I am speaking of future value though not current. Current value is far less than .com. My belief is that if and when .tv really catches on to the masses it will be appreciated worldwide which is a larger audience then .com. We know the value of traffic and so traffic in the future will answer this question. Traffic equals customers.

6.Lastly, any memorable pointers in this process that we should keep in mind?

Best pointer I can give that applies to the current market is this: The quality of names is decreasing rapidly. There are great names available for reg fee still out there but not everyone is good at finding them. If you are not and you should know your own abilities, pay some and buy from someone who is in the aftermarket or buy a quality premium. A person will end up spending much more in crappy regs than outright spending a chunk on a quality one and securing ones self in the marketplace to reap future benefits. 8^X

 

[discovernow]

Most everything has been said already and I totally agree. I just want to add that when you sell your domain think what it may be worth in 3-5 years down the road. To do this you need to look at trends. For example, I own
Espanol.tv (Spanish.tv in English) and I was offered $20,000 for the domain. I turned it down and it was tempting because it's a $2,000 a year premium. However, the spanish market is exploding, spanish tv is huge and will continue to get bigger, and the .tv is exploding.

The buyer knew this and he knows that I knew that as well when I turned down the offer. Don't sell something good in today's market with .tv unless you get a great offer because you are selling yourself short.

 

[Ammudamus]

Jim and Sanchay,
As always, great feedback that is much appreciated. This is something to definitely read if you are new to the extension and/or the domain arena. These are useful tools to add to our arsenal when dealing with buyers and sellers. One of the things that is important to note are the carrying costs of holding these names versus the future branding potential of the name (e.g. espanol.tv). If you can hold the name (appreciation) and offset those costs, you are good to go.

Thanks,
A