Note: The situation behind this question is very much real, but the numbers have been changed to protect the innocent. Situation: I have in my possession a month and a half old domain name that I have built a site for. The site's theme is something that will be appearing on the market around Fall of 2006/early 2007. Out of the blue, someone has offered to buy the domain from me. They lowball the original asking price, of course. We're in 4-figures land here. I said no, not interested, not looking to sell domain name. (Although the site is 6 weeks old, and I have added content to it, I wouldn't call it a lot of work; I'd say 30 minutes every 2 days worth of work.) They keep doubling their original offer. Three times. Now we're in mid-4 figures. They ask if I'll sell it for any price. I toss out a wild number that is at least 10 times their last offer. (Now we're up to 5 figures.) A day goes by. This morning, an email: They've gone up to almost 5 figures, but not quite. So what would you do if you were me? I registered this domain out of the blue, because I thought the product had potential, and was interested in it. There isn't a whole lot of sites devoted to it yet, and behold, thanks to linkage, I've climbed the SERPs very fast, and ranks #1 on Google for all important search terms. As I said, I haven't devoted nearly that much time to it, and we are talking almost four figures of instant cash here (as I've only spent $10 to buy the domain and pay for 2 months hosting on Godaddy, and they only want the domain, not the site). Here is why I don't want to sell too fast: I believe the offer comes from high up; someone involved with the product. Yes, he used a basic email, but that's common practice when trying to buy a domain name. I believe he has a lot of money at his disposal, and I can squeeze him for more. Why do I believe this? There is no way in hell the domain name is worth this much unless he was involved with the product and plans to use it to promote the product. If you were in my position, would you take the offer?
Regardless of how much time you've put into it, how much could you potentially make out of it. If the guy thinks its worth that much then he presumably thinks he can make sh*tloads himself. Is he in a better position then you to make the money ie does he have an exclusive unique product etc.? Also if you can somehow guesstimate how much he is thinking he will make then that would allow you to negotiated better.
I would take the offer. If they are indeed involved with the product they just have to trademark the name and will be able to take the domain. This is assuming that the domain name has whatever trademark in it. If you're only holding on to it because you think you can squeeze a few hundred more dollars out of them, I would sell it for the current offer (almost 5 figures). Greed can easily blow a good deal .
Weigh up what you think you can make from the site v's what you have been offered for the domain. Choose accordingly. The bottom line is that there aren't that many domain buyers who are willing to spend a five-figure sum (almost) on a domain. Having said that, it may be worth withdrawing from the negotiations entirely if you believe that there will be a boom in the area the domain is related to and continuing to develop the site. Once the boom kicks off, the domain will obviously be worth more and it may be possible to set a much higher ballpark figure of mid $xx,xxx to $xxx,xxx; however, that is a BIG risk and it could come to absolutely nothing at all, where you are left holding a domain that you can't sell, slipping down the serps into oblivion, and kicking yourself for not taking the offer when it was on the table.
If this guy is who you think he is then I would aim a lot higher. If the product itself is worth a great deal of money then I would obtain some advice from a commercial lawyer about how to negotiate correctly for a large amount of money. You could also negotiate a sum of money plus a small percentage or something like that. Think outside the square.
blaber... What do you mean by "take the money and run"?? I'd have taken the money and sold the domain, why run unless you are cheating??
yeah right, but it often used where you are selling something on a price which doesnt worth it. but as you've decided to keep the domain even after near 5 digit offer it sure worths it. thats why I thought it was a bit confusing. anyway good luck with you site
I have seen a number of sites that received offers, passed on the offers and went on to un-greatness. Here's a few: eshopper.com - The name was taken back in the very early nineties by a machine shop that was to receive blueprints online and machine parts. Later it was going to be a shopping portal built by the original owner and several partners. Yahoo and Ziff-Davis both launched magazines called Eshopper and then came offering 7 figures for the name. Several partners decided to hold it because "it must be worth more". Look at it now, it's a sad page of affiliate ads. fleetexchange.com - A diesel mechanic was going to build a site to handle fleet paperwork and tie it in with maintenance schedules, tire suppliers, freight tracking, compliance issues, etc. fleetXchange.com contacted him and said he was kinda infringing but they'd offer him a low 6 figure price for it. He passed and it sits unused in it's current state for six years. In either case, the cash invested in T-bills or wasted on some status car would be better than the thought that an offer was left on the table. Take the money! Hey, I'll offer you two figures if you tell me what the domain is and who the potential buyer was.