So, a couple weeks ago, I was able to broker the domain BlueStar.com for $90,000. Here’s the story behind this one and what made this deal so interesting. . .
What makes this domain so valuable . . .
For me brand names are probably my favorite domains to work with. As I often describe to people, putting a price tag on a brand is like telling someone how much their child is worth. From an end user’s perspective, each and every day they devote all of there efforts to building something. From working long hours, to strategically employing key persons, everything that goes on behind the scenes of a company is driving towards a single goal. It’s a million of these little things that all come together toward the peak and it’s this peak that ultimately becomes the brand. So how exactly do you value this and where does the domain fall into all this? This is the known challenge of bottling the value of a brand. As many domain brokers will iterate, it’s often in the eye of the beholder or visionary or the buyer who has their goal and millions of little things aligned to maximize it’s full potential.
When I think about about BlueStar.com, Hollywood was among the first real brand associations that came to mind. In 1987 a movie was released by the name of Wall Street. The appearance “blue star” in pop culture provided a level of notoriety. This carries over into the minds of those looking to build a brand or those who were yet to create one. It’s this association that often sets the stage for many interested parties to want or think of this as “their” brand., and like many great brand names, there are often many interested buyers.
You’re not the only one. . .
Knowing that there there are so many potential buyers is what made working on this domain so fun. There’s a higher level of confidence, as a broker representing an asset like this one, when you have to constantly remind your potential buyers, hey “You’re not the only one!”
And because of this, when I started marketing this domain to end users I was relatively confident I would be able to gain a lot of traction. There were so many companies across many different verticals operating under “Blue Star”. However, as to stay with the Hollywood motif and what makes domains so special is that there can only be one BlueStar.com!
So, without any prior marketing ever for this domain, I began my initial outreach and the results were instantly favorable. Mind you, this was the first time BlueStar.com had been marketed as “for sale” to a large group of prospective buyers. The owner agreed to a $100,000 ask price.
From the jump there was one prospect who was very interested. I was bounced from one contact to another and until I was speaking with the decision maker. It was an intense phone call with a rather unpleasant, aggressive tone and approach. They offered $25,000. I explained that $25,000 would not get this done. Minutes after hanging up, I received another phone call and the offer was increased to $30,000. I again informed him that this would not get it done, but I would convey the offer nonetheless.
I spoke with the Seller and she confirmed that she was not interested in $30,000. And as other offers came in, I let the other interested parties know the same. The original $25,000 offer then increased again, now jumping to $40,000. This happened within a day. I soon realized, these guys needed this domain.
But, no, seriously, you’re not the only one!
The Seller was not interested in accepting $40,000, and rightfully so. After going out of town for vacation, a week later I circled back with the Buyer. He increased his offer to $65,000. But to add to his aggressive tactics, this time their offer came with a stipulation.
You must accept this offer by tomorrow 5:00PM EST.
Occasionally, deadlines can be an effective tactic. However, this was not one of those cases. At Domain Holdings we are very transparent with who we are speaking with and where the offers are coming from. I informed the Seller about the Buyer’s current offer and this strict deadline. She was neither happy nor interested in it. His aggressive negotiation tactics and approach towards her regarding buying this domain prior to my outreach had already established a negative experience.
With the looming deadline approaching, a new contender and the ultimate buyer had emerged.
Unlike the original offer, this Buyer was a very genuine person and very professional. The next day, I explained our sales process, escrow, and how transfer of the domain worked. This Buyer didn’t hesitate in finalizing negotiations and proceeding with their intent to purchase.
Meanwhile, the deadline on the other party’s offer had expired. The original party called me and stated something along the lines of, “So, I guess we don’t have a deal?” My response was simple, “No. It sold.” They were clearly upset. After I hung up the phone with him, someone higher up the chain called me and attempted to continue the aggressive negotiations. Since they realized they were about to lose out on this domain they tried to raise the offer to $100,000.
I spoke with the Seller and she and I were on the same page. She wasn’t interested in accepting. Their tactics and assertive procedures did not bode well. I then spoke with the winning Buyer and informed him of the situation. Within 12 hours, escrow had been set up, both parties signed off and the funding was complete.
Shoulda Woulda Coulda
What I love most about this deal is that the Seller opted to work with the Buyer who, although, in the end was $10,000 LESS than the ask. Sometimes it’s not the guy who yells the loudest or pushes the hardest who wins the deal. Sometimes it’s about finding the right Buyer for the best brand. There’s only one BlueStar.com and I’m happy to have helped this Buyer come to own it. I have nothing but the utmost respect and wish all the success in the world.