The story starts just like any other normal inquiry on my part. This was around 10/04 (did somebody said it was late back then?) and I sent an email to a domain owner (info found on WHOIS) asking if he is interested in selling and if so, a price. So far so good, nothing out of the ordinary.
The reply was:”USD150K, firm“. Now this was a really good domain but spending 150K isn’t something I do daily. At the time I was really into a number of books about creative financing and negotiation where the main message was “pricing is never an issue“. Talk about attitude!
(note: link above is to a story I wrote earlier related to this same domain)
Knowing all I recently learned I decided to put things in motion, see where it will take me. I do not have the email chain on this computer so the following conversation is from memory, may not be accurate word by word.
My reply for the 150K price was: “It is a great domain, and I’m sure you quoted the price to many and they walked away or it would have been sold by now. I’m willing to pay your asking price if I can get certain terms on the domain. Do let me know if this is something you are willing to explore”.
The domain owner was impressed someone was finally willing to give him his price and was curious to learn more, he was curious about the rest of the offer. My offer then was: ” One month trial at US$3K and if I do like the domain rest is in 24 equal payments (given the 3K is deducted from full payment)”. Again, the domain owner liked what my offer was. After all, it was much better then those who simply walked away or those who gave him ridiculous or low offers.
John Berryhill drafted the contract and within a couple of days we started testing. Within a couple of days the domain was making over 200$/day. Of course we went ahead with the agreement and purchased the domain. The domain basically paid for itself (and some) during the payment period and became stronger and stronger as time passed by. Today, the domain is making approx. 1K/day on a PPC page.
The moral of the story is three folds:
1. It is never too late
2. Be creative. Be different. Don’t wait for things to happen - make things happen.
3. Learn, learn, and learn some more. You never know what will spark your creative mind, but if you search, you will find. I tend to do allot of searching.
Happy domaining!
Sahar
P.S.
Why I do not disclose the domain? Read my response to a similar question by Elliot Silver here (question #6).
Great read Sahar. Thanks.
Bill
Hi Sahar,
I have a similar domain in mind that I’d like to go after… Any chance I could visit with you to determine how can go about doing this on a shoe-string budget? Do you, or RMG, partner on deals like this if the domain is strong enough?
Thanks kindly,
—–ANSWER—-
Yes, Darren Cleveland can help you with this.
Cheers
Sahar
Sahar, there seems to be a market for advising on deals like this. The fear for lots of buyers is they are afraid to disclose the name to anyone who may be able to help. Do you recommend a NDA(non-disclosure agreement) for domain names that would somewhat protect the buyer and his target name? If not, what do you recommend? Great job with presenting unique options on purchasing.
Paul Rubillo
—-ANSWER—-
Hi Paul,
Agree, there is a market opportunity here and at some point of time it is likely RMG will get into it, just not right now. Since there is no such service today I would recommend I would say it is mostly asking those you know very well, and if they do choose to help you, they will not charge you. When one does not charge you it will be difficult, and also somewhat inappropriate, to ask him to sign an NDA.
I have friends from time to time ask me about a name and if I have the time and in a mood I do help them. They trust me not to cut them off and of course I never do. For you, if you need such advice, just make sure you are dealing with individuals with strong reputation. Remember, they did not build that reputation over night and definitely do not want to risk losing it overnight.
Hope that helps,
Sahar
Thanks, Sahar.
This is one of the most important–and valuable–insights and “lessons” a domain buyer could ever take to heart; and as has been the case in the “real” real estate world forever:
“Your price, my terms…my price, your terms.”
—-ANSWER—-
Great one line summary Steve. Why did I have to write all that post.. god knows
Sahar
Sahar -
You mention various creative financing books - can you recommend any in specific? Also, any domain financing companies specifically?
Thanks and shalom from Haifa
Ariel
—-ANSWER—-
Shalom Ariel,
Most of those were negotiation books which also includes allot of material on “creative financing”, as you negotiate your way to make things happen. At the time I was much into the subject so was reading everything I could get my hands on.
Here’s a few..
Harvard Business Essentials Guide to Negotiation
Harvard Business Review on Negotiation and Conflict Resolution
Getting to Yes
Negotiation (Harvard Business Essentials Series)
Negotiate This! (Herb Cohen, highly recommended!)
Secrets of Power Negotiating (Roger Dawson, highly recommended)
You Can Negotiate Anything (Herb Cohen)
Now that I’m going through Amazon, books.com (easier to spell then B&N in the address bar!), I think I’ll get back to it.
As for domain financing companies, there’s only one, DomainCapital, but I’m sure more in the near future, just a matter of time.
Looking forward to hearing your success stories!
Sahar “Negotiator.com” Sarid
Hi Ariel, great blog. I have recently started looking into his bossiness and have been reading as much as I can about it. I have also parked some names and was wondering if you cared to answer a question for me. The above mentioned article states the income you are now receiving on PPC, do you develop the site (what software do you use ) or do you use a parked service ( who do you recommend )
Sahar–if I may suggest another good book for domain folks to read: Any of the best seller “Nothing Down” book versions by Robert Allen.
Though his traveling road show seminars have far too much “fluff & puff” get-rich-quick baloney in them, many of his methods (which he freely “borrowed” w/out attribution from the creative financing real estate authors, investors, and organizations of the 1950’s-80’s) are very applicable to domains…
…just insert the word “domain/s” everywhere you see his use “real estate.”
—-ANSWER—-
Agree, read a couple of his books. thanks for pointing it out.
Sahar
Hi Sahar,
great insight, thanks. It would be great to read more stuff like this
Your experience is very valuable.
Best regards
Michal
Great post, great method.
You sure did your homework right before making your offer :
- what it was costing to you :
150 - 3 = 147 K (3K risked)
147 / 24 = 6,125 K per month = 204$/day per
- the tests showed it was making 200$/day
So the tests were in fact a confirmation
I’m gonna have a look deeper in your website to see if you have some appraisal tips somewhere 
Although not many domain owners will accept this agreement, it’s an interesting possibility for those like me that are just beginning right now with light pockets.
Thank you !