.tv Strictly Hypotethical

[easygoing]

Hello .TV visionaries...Assume this strictly hypotethical scenario:

You have spent this whole past week having little or no sleep in the midst of extremely stressfull negotiations for the sale of the crown jewel .TV domain in your domain portfolio, let us call it an international city .TV geo. This is not the first time you have been approached by this buyer who has previously offered mid-six-figures, but during the previous 4 approaches, you have always tenaciously hanged on for seven-figures+change.

The buyer's latest offer to you this week has reached high six figures after grueling negotiations. He's close and it's pretty tempting, but also you know he wants the domain soo badly, eventhough on top of the first page of the faxed contract, it is noted in capital, this is our very last offer and the contract offer expires Monday. Also the contract includes an NDA clause.

You have this weekend to respond to the buyer. So would you (again Stricly Hypotetically speaking):

1) Accept the high six-fig and sign the dotted line and fax back right away.

2) Accept the high six-fig and sign but fax back Sunday night (play cool).

3) Accept the high six-fig but cross the NDA clause with the goal of raising the value of the other geo domains in your portfolio whether .TV or not.

4) Accept the NDA in return for a nudge in the price say 50k more.

5) Stay tenacious and keep hanging in there for seven figures, not only due to human nature's greed, but also because from past history you are 95%positive this buyer will be back.

Again assume this is strictly hypotetical scenario...What would you do in this situation? 1,2,3,4, or 5 or something else?

 

[easygoing]

Here goes hypothetically speaking, hoping I don't stick my foot in my mouth:

- @jimbojimbo: you checked buyer credentials but still no clue as to who the real buyer is, i.e. you are almost positive from the negotiations progress that contact is a front for the real buyer, especially since contact entity is located in a different continent then where your geo domain is located. Also I agree that one should not think that this is the only domain the buyer can purchase but with this name you can't help but think like that. As for your 2 million dollar domain statement, I admit that is the kind of assurdness that I flagrantly lack, I wish I had titanium confidence like that.

- @ammudamus: capital need is not an issue...gap between offer and asking price though much closer is still significant...Revenue share is a non-starter and these guys are very protective of their/whoever they represent's plan for the domain...not only protective, very sensitive to the point of taking it personal.

- @johntv and jeffoverman: I will answer you combined because your comments are related. Johntv, negotiating near seven figures is possible only if one admits their weak points (of course you must also have a mega domain). In my case I am a very weak negotiator and have been outfoxed many times before to the point that I was forced to admit my weakness and deal with my losses. Since my normal instincts are flawed, therefore the opposite way of thinking is the way to focus on...jeffoverman, it is amazing you mentioned Rick Schwartz, because during all these months of negotiation, at every critical turning point, I was asking myself, what would I normally do and what would Rick do in this case, and I only got to this point so far from the initial offer by simply stripping my weak emotions and putting Rick in my shoes by choosing his way over my normal way. Lastly, Johntv I am pretty sure that there are higher .tv sales happening all the time that no one knows about, and I have a strong feeling that you as a veteran of many victories probably are party to a few but no one will ever know due to NDA.

- @everyone else: your advice has been so helpful, I am so thankful, please keep comments coming until tomorrow...yeah I agree, I think NDA should not be a factor...oh well looks like another sleepless night.

 

[jeffoverman]

easygoing-pm sent...

 

[FedPrimeRate.com]

...my normal instincts are flawed...

It helps to imagine the buyer laughing with his friends and telling everyone how much of a sucker you, the buyer, were to sell at such a low price when he/she was willing to go much higher. Play these "movies" in your head often to keep the negotiator in you sharp. Constantly remind yourself that you are at the top of the food chain, as the holder of a very valuable domain name. Do whatever it takes to stay focused, and aggressive. Once the sale is done, it's done forever.

FYI: I've been holding onto a certain debt-related dot-TV name for some time now. Offers have come, and I've passed on all of them. Came very close to selling once, and if I had agreed to that offer, I would have regretted it for a very long time. I've been developing the name since, and the value of the space has increased dramatically.

Keep posting about your progress here. The moral support will help a lot.

Vodka martinis will help with the sleep thing. :bingo:

AmCy

 

[neilebb]

Very Interesting Question Indeed.

Personally - I would sign on the dotted line immediately - Unless you have someone else who is expressing interest in the domain name also.

If there is Competition for this exact domain name - I would then - Hold out.

 

[easygoing]

easygoing-pm sent...

guys i am going to lean on your kindness that I will not be able to answer pm's or even read them...even reading a pm that says "is it so and so city?" and by myself not answering, could be misunderstood as a "yes"...please understand the sensitivity of my situation...I desperately need your advice as I am navigating solo, but I need to be careful not to play "guess the city" and blow the whole deal.

of course this is not directed at jeffoverman who i greatly admire and respect, and whose pm i have not read yet, just speaking in general.

easygoing-pm sent...

Jeffoverman, I read your PM...Thanks for the great advice...words of wisdom...I will think about it....so so appreciated

 

[Len]

Either #1 or #2
Although this potential buyer has made a number of previous offers I would be very wary that they have highlighted that this is their final offer.
I had this happen to me and I thought I'd be smart and ask for more......This resulted in an immediate cancellation of negotiations and I ended up eventually selling the domain for much less than their final offer.

It would be interesting to know if you have had any previous offers from others that have been anywhere near your current offer. If not then you need to ask yourself, why not?

Maybe this is the goose that is going to lay the proverbial golden egg! Don't let it fly away and leave you with the duck!

 

[SKG]

I must ask you that by "hypothetical" are you referring to the domain or the offer amount because many are assuming you have a six figure offer on the table and you are trying to decide if and how to push it to a seven figure deal? It is important that you clear the message you are making, thanks.

You posed a similar/related question back in January: http://www.namepros.com/dot-tv/550916-outlook-for-7-figures-tv-sales.html

7 figures is an enormous sum even in the .com world. Today with the economy the way it is that figure can buy many superior .com names.

If I am not mistaken, Webcam.com has a million dollar bid on it that has been verified according to some reputable blogs.

 

[MJ]

OMG Sell!!!!! Do not look back.

 

[equity78]

First off best of luck, I think the flaw in a hypothetical with little info, although I think I have an idea what the name could be, is that you do not know anything about the people who are giving you their opinion. And we don't know a lot about you. These factors mean alot because everything is relative. A million guys would be in line to get with the playmate of the year, but somewhere there is some guy tired of being intimate with her. Fact of life. There are many people in the world who would cream in their pants for a $10,000 sale so of course they are going to tell you take the money and run fast. They know nothing about you so its not 100 % that the opinion makes sense. You could have $20,000,000 in the bank and this sale would be nice but if no sale at your price you are not losing any sleep over that. I have friends who know nothing about domains so if I said that someone made an offer for $1000 on Tea.tv they would say take it and run. So the hypothetical is really influenced not by what might be best for you but by other peoples real and psychological hang ups about domains and their place on the socio-economic chain.

Perfect example what if Rick Schwartz had a "low profile" same portfolio but not known in the domaining world same as you are, He could have posed a hypothetical about iReport.com. Do I take $5000, do I push for $50,000, Do I hold out for $750,000 ? How many people would have told him to hold out for $750,000 ? Bottom line $5000, and even $50,000 would have meant nothing to him and his lifestyle so the hypothetical without knowing more is flawed imo.

If this money is life changing money for you then you have to think about the missed opportunity if you do not sell and stay where you are and probably should sell.

If you are more than comfortable then maybe the money does not change your life either way and you hold for what you want.

You have to factor in your finances along with the economy and the domain landscape. Again IMO

 

[gr8trfoo]

How about option 6? Go to sleep and have a dream about what kind of income would roll in yearly if that domain became a top destination for news and information about that city.

Everyone's situation is different. People need money for different things. Myself I only want to sell a top of the line city when I know I can buy another better one for less.

Perfect example what if Rick Schwartz had a "low profile" same portfolio but not known in the domaining world same as you are, He could have posed a hypothetical about iReport.com. Do I take $5000, do I push for $50,000, Do I hold out for $750,000 ? How many people would have told him to hold out for $750,000 ? Bottom line $5000, and even $50,000 would have meant nothing to him and his lifestyle so the hypothetical without knowing more is flawed imo.

I wonder how much Rick would have taken if he hadn't known it was CNN he was dealing with?

One the other side - 750k to CNN hardly made a dent in their marketing budget.

 

[easygoing]

First off best of luck, I think the flaw in a hypothetical with little info, although I think I have an idea what the name could be

@equity78: I am not surprised at all that you think you have an idea what the name could be. As a forum moderator I am not sure what kind of access you have such as my IP address etc, but from my following your opinions this past year, it is more likely that this might be the result of pure smarts. I have always thought that you were extremely sharp and the steady hand at the wheel, so this is not surprising to me. Goes without saying that you are free to say whatever is on your mind, but as the captain of the forum ship I ask you to kindly protect me and not mention your guess whether such guess is right or wrong (kind of a silence code of honor).

As for the flaw in the hypothetical, man I agree you are 100% right (not enough info), just that I am grasping for any compass I can get my hand on with my brain under the gun with this deadline...tough day believe me...hypothetically speaking of course.

@finster: interesting opinion...man, I am sorry I did not mention you before, I admire you a lot.

@everyone: for all the analogies about Rick Schwartz, I just want to say that if Rick Schwartz was Larry Bird I would not qualify to be the towel boy that hands him the towel when he comes off the bench...humbly just for the record.

 

[hullswingerscom]

deadline?on a name they want.?.your in the driving seat makes no sence to me.
this is not the time to sell good names

 

[localexperts]

Here is how I view the problem.

If you are a domainer and your goal is to invest and sell domains, then selling at high six figures for a geo dot tv offers an attractive risk/reward ratio (given current market conditions). Sell Immediately!

If you want to develop, high six figures is nothing compared to the potential yearly revenue stream of developing a top city like NewYork.TV or LosAngeles.TV.

If you own multiple cities (assuming you own the city where you live and the city with the offer is a different city), I would sell the city for high six figures and then invest that money in development of the city where I live. I would befriend several internet CEOs who have built a successful business. Talk with them on a regular basis and learn the pitfalls and shortcuts of development.

I would never sell the city I live in (unless I had 0% chance of developing it). I would sell a city only if it was a distraction or allowed for re-investment.

I would ignore all my other geos - to focus 100% on the city where I live. I would develop a cookbook, where I could replicate it with the other geos in the next 3 to 5 years. Don't focus on the other geos until you are generating $250K in annual revenue. Don't think about them. Other than renewing them, ignore them.

$500K in investment could lead to an eight figure offer (if development is done properly).

$500K could also lead to $0 if you don't know what you are doing.

PS> Leave it to a programmer to offer an IF-THEN-ELSE answer. Sorry.

 

[MrRhee]

@equity: great post(s)

 

[lambda]

bye!

 

[saucey]

#1

Don't be foolish... Is it worth holding out for a few thousand more and risk losing several hundred thousand??

It' like selling a house.... Seller want's $500 000, buyer offers $488K... seller say no... I want 500K firm ....so buyer says fine,there are other homes available, and walks.... The seller is now scratching his head.. wondering why he didn't sell for a measly 12K less..

Also, if you are going to accept and sign on the dotted line... Then why would you wait to the last minute to fax it back? This doesn't exactly show "good faith" and could be construed as more of an ASS**LE move by the buyer. It doesn't prove anything other than the fact that you may be more difficult to deal with than originally thought.

If you are going to sell it... then sell it... don't play games with this kind of money.

Just my 2 cents!

P.S. I only own 1 .TV. ViewOnline.Tv.

 

[johntv]

Johntv I am pretty sure that there are higher .tv sales happening all the time that no one knows about, and I have a strong feeling that you as a veteran of many victories probably are party to a few but no one will ever know due to NDA.

Actually, I had two NDA sales, but either don't even come close to 7 figures and to be honest only one was (low) 6 figures. Personally, I would advice to take the offer as companies don't wait forever and sometimes just move on with an alternative name and don't look back after they have invested a lot in advertising the new name.

oh well looks like another sleepless night.

Just take the offer and sleep well, it's simply not possible to regret taking a high 6 figure offer on a .tv name at these economic times.

Invest part of it again in .tv and .com names to keep your portfolio at a certain value level, take an expensive holiday to celebrate your excellent sale and keep the rest in your savings account. I'm sure you will sleep well after doing that!

 

[easygoing]

My brain is fried and I am going to sleep... I have analyzed each opinion carefully, especially the ones that at first reaction I did not agree with. Though I am not able to elaborate further, all your insights pro and con were so helpful in reaching a decision tonight...Thanks to everyone who took the time and effort to comment.

 

[jeffoverman]

easygoing-what was your conclusion on things and what did you do?

we been waiting lol...

My brain is fried and I am going to sleep... I have analyzed each opinion carefully, especially the ones that at first reaction I did not agree with. Though I am not able to elaborate further, all your insights pro and con were so helpful in reaching a decision tonight...Thanks to everyone who took the time and effort to comment.

 

[RPK]

easygoing-what was your conclusion on things and what did you do?

we been waiting lol...

Jeff, it was "Strictly Hypotethical" :hehe: