advice Well funded startup wants my domain

[Mojoman1234]

I was contacted by a principle from a well funded startup (>$12M), still in stealth mode and about to move into 25k square feet of prime commercial office space. The founders sold their previous company for billions. Let's call the new company "ABC Technology". I own "ABCtech.com". The real name is three characters + technology. (the three characters have industry significance) I used this briefly for tech blog, now just linked to a dormant twitter account.

Their initial offer was $500, "we're just a startup". I countered with: for that amount I'll just hold onto it and maybe use it with my next company, or offer it to "ABC Technology Consultants" who have also expressed interest. I also let him know that I am aware of their financial situation.

He is now asking if there is a price level I am thinking of.

I'd greatly appreciate your advice! What would you do?

 

[pchip]

I can literally feel your anger flying in the air, breath

Business is a fight in civilized way. Negotiation and using right word construction is an art. Following your logic I need to get offended when company with 12+ mln. financing offering me $500 for the name trying to say they just a startup. Isn't that classified as "sleazy/shady car salesman" then? Afterall they using psychological trick, trying to fool me that they are small company and can't afford more? I think so. That's why bigger companies hire brokers and lawyers to lie on their part.

But we don't get offended, because we are serious about the process. And 100% professional. Not trying to bull someone, but rather clear the fog. They say "I'm poor, can only offer $500". You answer "Hmm, but I've seen you just got financed". Exchanging words like jabs in a boxing fight. Smart businessman will never walk away from the deal, just because the other party can't be bullied or fooled.

Just because someone else chooses to use tactics that would deem offensive/deceptive to possibly other people doesn't mean that you have to drop to their level and respond with similar tactics. A better approach might have been to ask a question to highlight the same idea. Acting curious and not being so direct. You achieve the same result without possibly offending the other party.

The situation you mentioned is similar but not he same. How do you know the buyer knows the value of domains? A $500 offer might be fair in their opinion. Once again, the buyer didn't say (as an example) I know you're broke and you need the money so please accept my $500 offer. There are ways of doing it without being so direct and possibly offensive to other people.

I'm not the only one that didn't like the comment "I'm aware of your financials". It's important for the OP to understand that if other people didn't like it, then possibly the buyer didn't as well. Just trying to help the OP out since he was asking for advice.

I'm not word expert and would hope anyone else would point out anything that I might have worded incorrectly

 

[pchip]

Pchip: I think from your perspective as a pro domain trader, you are correct that it would be inappropriate to mention finances at your level.

Keep in mind that I am a private individual who was contacted directly by this company. I have never tried to sell any of the few domains I happen to own.

It was a very casual, friendly email exchange. When he said "@$500, we're just a startup" I just said " but its not like your starting out in your garage from what I've read. For $500, I'll just hang onto it for my own use... Good luck with the new venture!"

I was using the comment that you used from the first post "I also let him know that I am aware of their financial situation.". If that's not what you said then sorry for the misunderstanding.

That exact wording of "I'm aware of their financial situation" isn't what I liked. But if you didn't use that then all is well!

 

[Mojoman1234]

I was using the comment that you used from the first post "I also let him know that I am aware of their financial situation.". If that's not what you said then sorry for the misunderstanding.

That exact wording of "I'm aware of their financial situation" isn't what I liked. But if you didn't use that then all is well!

The phrasing actually used was the tongue in cheek one above "not like you're starting out in your garage from what I've read"

That was my only reference to their finances.

 

[NPer]

How about next time you go to the grocery store, the cashier says:
"That loaf of bread will cost you $10, sir... we know you can afford it judging by the prices you charge for your domain names".

And the next time a broke domainer "high-balls" you on a domain, insist that he pays less, because you know of his financial status.

Would you do these things?

One would think that items/property had a fair value-which would apply to everybody if sold to them.

If I feel like I am being ripped off, despite my financial status, I'll walk away. On the other hand, if I feel like I am getting a bargain, I might just buy it. It's how you approach the situation. I'd rather have the customer feel good about the purchase, and send me some good energy with the money.

Out of curiosity: is "ABC"T.com or "A"Tech.com in use or on sale? Are there any other generic names which would suit their business, that is available for a similar(or lower) price that you intend to charge? Plenty of companies use domains that differ from their actual business name... they refer to this as their "trading name".

I do hope that you make the sale though.

 

[Mojoman1234]

Out of curiosity: is "ABC"T.com or "A"Tech.com in use or on sale? Are there any other generic names which would suit their business, that is available for a similar(or lower) price that you intend to charge? Plenty of companies use domains that differ from their actual business name... they refer to this as their "trading name".

I do hope that you make the sale though.

Take my word for it, those two examples wouldn't apply here. " ABCTech" would be a great trading name for ABCTechnology don't you agree?

 

[NPer]

Take my word for it, those two examples wouldn't apply here. " ABCTech" would be a great trading name for ABCTechnology don't you agree?

Without knowing what "ABC" really stands for, and the price you intend to charge, I cannot say. Why wouldn't those two apply?

What about a generic name- something related to the type of technology they are involved in? "Technology" is a broad term, and is fine for the company name, but doesn't mean that they need to use "tech"/"technology" in the domain name for their company website.

 

[DomainVP]

You should always keep the interaction between you and the prospective buyer conversational and light, it's a business transaction and not a battle. You are part of the transaction; if you are disrespectful or snarky the buyer may just not buy the domain to make a point. Do research on the Nets.com domain, and you will learn quickly that being a jerk is not the way to go with domain sales.

When you are contacted with an inquiry, do your research on the person (if you can). Search for their company, search for their eMail address, learn about their business.

If it is a 'ghost' or anonymous eMail address that shows no history, then treat them as if they are the most knowledgable person in the industry; they just might be.

Once they make contact invite them to make an offer, and once the offer is made negotiate up; never give a price or discuss that the domain is 'for sale' until an offer is made.

*this will protect you from a URDP action in the future. Once an offer is made over the cost of registration and renewals, the party concedes that you are a rightful owner. Be leery of extremely low offers with that justification; they want your name, and are positioning themselves to keep the door open for potential UDRP action.

If you don't come to an agreed upon price, then you move along; they may come back and pay your price or they may never contact you again.

The price is set by you...

If you think the domain is worth $100k then so be it, either they pay it or they don't. If you are looking to make a sale then stick to reasonable prices in the $5k - $20k range.

That's all there is to it... nothing else matters.

 

[Mojoman1234]

Without knowing what "ABC" really stands for, and the price you intend to charge, I cannot say. Why wouldn't those two apply?

What about a generic name- something related to the type of technology they are involved in? "Technology" is a broad term, and is fine for the company name, but doesn't mean that they need to use "tech"/"technology" in the domain name for their company website.

The "ABC" in question is significant. Altering the "ABC" just kills it, take my word on this. This leaves the "Technology" which makes up the rest of the corporate name, at least as it is currently registered. Sure, they could have a domain name other than their company name, but that's not very common like:
ABCtechwidget.com the cyber home of ABC Technology Inc.?

 

[Paully]

Think carefully before giving any more explanations or clues Mojoman. You don't need to and it won't help you if people can piece together the domain you are talking about or the party concerned.

 

[brandnow]

They can also register ABC.Technology which would make them look pretty smart.

 

[DomainVP]

They can also register ABC.Technology which would make them look pretty smart.

Not true at all.

 

[brandnow]

Not true at all.

In your opinion. I'm not talking about the value of the domain name. .Com will continue to hold much more value. We're talking about web presence and appearance. Over the next few years the web will be changing for good. Having a LLL.Technology for your company, I believe, will look smart, especially a few years down the road. If you're just thinking short-term and the start-up will only be in business for a month before blowing all their funding on extra things then okay. I know my opinion may not be popular. I'm just saying that ABC.Technology looks better than ABCtechnology.com and the web is a changin' whether you like it or not.

 

[kemjika11]

Just let us know what happens in the end. This is an interesting situation and we dont want to follow it and be left hangin @ the end. thanks

 

[Mojoman1234]

Just let us know what happens in the end. This is an interesting situation and we dont want to follow it and be left hangin @ the end. thanks

I'll definitely update here on anything new. I appreciate the feedback and insights. For now, I'll continue to sit tight.

 

[pchip]

I should have mentioned in my comments that I do hope that you successfully land a deal with this buyer!

 

[London555]

I was contacted by a principle from a well funded startup (>$12M), still in stealth mode and about to move into 25k square feet of prime commercial office space. The founders sold their previous company for billions. Let's call the new company "ABC Technology". I own "ABCtech.com". The real name is three characters + technology. (the three characters have industry significance) I used this briefly for tech blog, now just linked to a dormant twitter account.

Their initial offer was $500, "we're just a startup". I countered with: for that amount I'll just hold onto it and maybe use it with my next company, or offer it to "ABC Technology Consultants" who have also expressed interest. I also let him know that I am aware of their financial situation.

He is now asking if there is a price level I am thinking of.

I'd greatly appreciate your advice! What would you do?

Myself-with that type of funding for a startup-id tell him he can have the name for 1% equity in the company-non voting ( and I'd settle for 1/2 of 1%) but that's just what I'd do-id also go trademark the domain.

 

[Shimmy]

If they own "ABCTechnology.com" and I owned "ABCTech.com" , my pricing would be greatly influenced by what ABC.com would sell for.

 

[kev]

From personal experience, you should be giving him a price within 24 hours of his initial email. Dragging it out over a few days is not the way to go. Just my opinion though.

 

[Mojoman1234]

If they own "ABCTechnology.com" and I owned "ABCTech.com" , my pricing would be greatly influenced by what ABC.com would sell for.

Abc.com looks like a large, well established Asian

From personal experience, you should be giving him a price within 24 hours of his initial email. Dragging it out over a few days is not the way to go. Just my opinion though.

Anyone else agree? Should I conyinue sit tight or get back to him with a "price level" he requested? It's beyond 24hrs, been 5 days since last communication, including the weekend.

 

[biggie]

Should I conyinue sit tight or get back to him with a "price level" he requested? It's beyond 24hrs, been 5 days since last communication, including the weekend.

it's your choice:

either sit tight and wait, or you can give them a price and wait.

typically, if someone makes an offer via email, i may reply with "too low to consider" and not give a price. especially when the bid and my expectations are very far apart.

if they come back with a much higher offer, then at that point i may give a price or a range.

it all depends on how desperate you are or if you're willing to let them walk.

imo....