This is an overlooked area where serious buyers, at times, may lack vision. They often concentrate on the price instead of the deal itself. Don’t feel bad, we’ve all been there and I’m no exception. What do I mean by that though? If the domain for example is estimated to make you 100$/day on PPC, how much the DEAL is worth to you? You may see cases where the domain isn’t for sale but the company is, and the price of the whole company is less then the value you are willing to pay for the domain.
The other aspect of this is when you concentrate on deal vs price you concentrate on TERMS, which means, you can structure ANY price for any domain (or any purchase for that matter) to be worthwhile if your terms are designed creative enough for you to make a return in the process or to at least to manage risk well enough to make the experience worthwhile. 10 million dollar domain for an estimated 10$/day ppc domain? can it be done? sure, just make sure you manage risk well enough (for example pay less then earnings with option to drop the deal if conditions change) and you can pay over the next few generations for the purchase, and still make money on the deal. One such deal we had years ago was a six figure domain purchase. I inquired for the purchase and the domain owner said his price. My response, as I felt price was high and as I wanted to avoid paying cash, was to tell the domain owner that even though I felt the domain was overpriced I won’t be like others and argue on price, if I can get my terms. The owner was curious what I meant by that so I described an offering where I had everything to gain and very little to lose (managed risk). The owner went for the deal I proposed which meant, we were “getting paid” to buy the domain (making more then our monthly payment) and at the end of the payment structure we ended up owning a multi-million dollar property.
So next time when a seller tells you a domain isn’t for sale or price is too high, just ask yourself, how can I structure a deal, address seller’s need (this topic is for another post), and make the experience worthwhile? You’ll be surprised what creative ideas you may come up with!
(Top Image Source)
Published on August 31, 2007
in General.
I Will be away next eight days. 1-2 in Los Angeles, 3-4 Huntington Beach, 5-8 San Francisco. If I’m not posting much during next week, you know why.
News Corp’s new Youtube’s competitor, dubbed in the media previously as “
Clown Co.“, just got
a new name.
Why Hulu? Objectively, Hulu is short, easy to spell, easy to pronounce, and rhymes with itself. Subjectively, Hulu strikes us as an inherently fun name, one that captures the spirit of the service we’re building. Our hope is that Hulu will embody our (admittedly ambitious) never-ending mission, which is to help you find and enjoy the world’s premier content when, where and how you want it.
I do like the name. As they said, it is short, fun, rhymes, and has no negative association in my mind to it. One issue it does have is the “radio test”, as some may hear it and remeber/type “Hooloo.com“, a domain name that has been registered since 1998.
Web professionals, especially those in the keyword marketplaces such as SEO and Domain folks, have been “
pre searching (pdf)” keyword analysis tools such as
Overture and
Wordtracker for years to help find relevant information. A number of years ago we’ve seen other major companies such as
vivisimo and
ask.com provide
clustering technologies and
clickstream data to help users navigate to their desired or related information faster and more efficient.
An article at StartupSquad describes India based Webaroo’s beta product called “SearchRadar“. From StartupSquad:
On the whole, you can view SearchRadar as a tool that performs sophisticated query suggestion for query refinement. Instead of you digging for similar queries or try to come up with similar phrases, it throws them in front of you. Besides that, on-mouseover excerpts linking the original query to the suggested keywords are also helpful.
Because today’s leading search engines leave much to be desired, I believe some users will adopt this new method, and similar methods which tap into other people’s knowledge and experiences, searching for related search terms and phrases before conducting their search. Can this or a similar method have the power to become the new coveted “start page” for web users? While a long shot, I believe it is something to keep an eye on.
A truly inspiring story at
PetsDo.com, a pet related site:
In 1975, Gary Dahl working as an advertising executive at the time, launched the sale of the pet rock which quickly transformed him into a multi-millionaire. This enormous profit is much more impressive considering it only took him six months to achieve his multi-millionaire status and the extremely low cost of the product.
The pet rock sold for $3.95 and estimates state Dahl sold over 5 million of his pet rocks in a six month period. Even more, each pet rock was purchased for a few pennies and Dahl estimated that the packaging and accompanying manual cost him under 30 cents per rock in bulk to produce. Therefore, assuming incidentals and delivery cost Dahl another 65 cents per rock, then Dahl was profiting 3 dollars per rock. With these totals Dahl earned over 15 million dollars during a six month period in 1975 which would be estimated at $56,166,419.02 today.
Read the rest of the article here.
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