Case Study: Buy-Side client wants to buy a domain name and has a healthy six-figure budget to acquire the .com of their brand. They currently operate the CCTLD around their brand in their home market.
Just recently, a new buy-side client was running their business on a CCTLD for a brand they developed within that particular Country. As the brand grew, it became important to secure the .com TLD as they tried to scale their brand. The Company is fairly successful in the Home Services space and really needed to upgrade to the superior .com to continue on a solid global growth.
In this case, the client wanted to secure the asset and had established a fairly decent budget for the name in question. This was a four-letter .com domain name that had a fair market valuation in excess of $350,000.00 USD, based on similar market comps, related to the asset in question.
The owner of the domain name owned quite a bit of IP around the asset; including certain trademarks and business filings. That intellectual property then became intermingled with the domain name and ultimately needed to be tied to any divestment sale.
That was a major hurdle for the prospective buyer to overcome. The buyer’s budget in the low/mid-six figure range was eclipsed by the intertwined business assets. The seller provided guidance that went well into the seven-figure range and simply became too much for the client to absorb. As a result, the client was unable to secure their global .com brand.
That became a major hiccup for the client to overcome, so they ultimately decided to rebrand under a new alternative .com asset.
When attempting to secure a domain name that is owned by another party, its important to conduct enough due-diligence before any type of engagement is made.
Ask yourself a series of questions before engaging with a broker, or domain owner…
- Realistically set a budget that aligns with your revenues and business growth trajectory.
- Research the value of relevant domains. What can you expect to pay?
- How valuable is the IP tied to the inventory in question?
- Identify viable alternatives that could be used if needed
- Have a clear path forward
A little research goes a long way….
Research can save you thousands of dollars and lead to a positive end result. Flexibility and timing don’t hurt the cause either.
When securing your next domain name, have a clear-cut plan identified and strategized before engaging with any domain name owner on the aftermarket.
Please get in touch with us if you need a domain name expert to assist with any of your Domain Buy Side needs.