Last week a new prospective buyer needed a domain name broker to help secure a ten letter, two-word .com domain name. The client tried to reach out directly to try and secure the asset with no success.
Notably, the domain name has some importance as it targets a specific niche among a reasonably competitive keyword in the “home services” vertical.
The buyer attempted to negotiate their own deal and received a price in the mid-five figure range ( $xx,xxx). They had a predetermined budget not to exceed $22k usd. Their opening offer of 8k was countered with a price of 65k; buyer bumped to 14k and received a 55k counter. Realistically, they knew there was no way they were going to pay mid-five figures on a name that is grossly overvalued.
It was time to enlist a domain name broker to help secure this new brand for the client.
After spending some time running due diligence, they reached out, and asked for “stealth acquisition” assistance with this particular name…As a domain name broker, there were a few questions I needed answered before I could dive in and really assist the prospective client.
Lets ask a few questions when getting started on any acquisition
- What’s your timing?
- What’s your budget?
- Has anyone made contact with the rightful owner, what did they say?
Additionally, These are very important baseline questions that need to be asked to successfully negotiate the fair market value of a premium domain name.
Indeed, once i had a better understanding of the asset, I was able to contact the rightful owner. The owner was someone that I have had an established relationship with. My price for the client turned out to be considerably less that what the seller was originally seeking. Why did this happen?
- This rightful owner had previous business dealings with my company and completed other deals together in the past.
- The developed seller/broker relationship had already been cultivated years before
- A pricing valuation was provided to the seller based on comps and market conditions
- The seller sold the asset for under $24k usd and the buyer was extremely happy with the end result.
Premium Brokerage Checklist
- Take your time and investigate the asset(s).
- Find a domain name broker with a proven track record that understands your needs
- Establish a budget and timing before you speak with a domain name broker
- Narrow down the list of targeted assets
- Plan ahead and have a solid backup target
Complete proper due diligence, and a solid list of suitable back up inventory is paramount to selecting the perfect name for your next brand or business segment.
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