There are those out there for whom the domain industry is an unknown frontier because the domain industry is often misunderstood. This even applies to those who have invested fortunes in the hopes of striking it rich.
A few weeks ago with the help of Deepak Daftari I brokered the domain Charts.com for $50,000 USD. The reason this transaction came to fruition was due primarily to key relationships and outbound marketing efforts. Domain Holdings takes great pride in both.
Initially, the domain name Charts.com carried a price tag of $200,000. There are many factors that go into evaluating a domain name such as its anatomy, comparable sales (“comps”), and its overall popularity – from both a keyword search and industry perspective. I could go into countless details regarding the valuation process for a single domain. However, it’s important to know that at the end of the day, the market will ultimately dictate a domain’s value. All these factors along with common practice and sense dictate its price with the expectancy to negotiate. When I first took on Charts.com, I marketed and presented this domain to end users with six figure expectations.
To be honest, it was a slow start.
I was emailing, calling, and skyping prospective buyers that I thought would jump at the opportunity. Their responses were less than enthusiastic. With my outreach there were two primary target verticals – those who utilized the term “charts” as it relates to both “music” and “data”.
After about 30 days of outreach, the best results were coming from the “data” interested end-users. The offers were in the three and four figures. It seemed like most people just didn’t get it.
It wasn’t until an existing client of Domain Holdings made a 5-figure offer that things really started moving. Throughout the whole process we kept the domain owner/seller up to date with who we were speaking with and any and all offers that came in. This is often much appreciated and something that we make an extra effort here to over-communicate, even when we aren’t making as much initial progress as we may hope.
Little by little, as to not leave any money on the table,we slowly lowered the asking price from six to 5-figures.
Once the previously “uninterested” parties caught wind that a competitor was making moves to acquire this domain, they started to reconsider their previous positions.
This is where it started to get fun.
The four figure offers turned into five, and increased from there. Often times it takes a bit of hand holding to help illustrate how and why proper domain acquisitions are vital. This instance proved no different.
I then spoke with each client in depth as to how and why they need to acquire this. This ranged from a branding aspect as well as from a competitive standpoint and so on. And the offers went up and up.
As luck would have it Deepak happened to know the ultimate buyer. For those of you who don’t know Deepak, he is an industry veteran and at the forefront of the Indian domain community. If you ever have the opportunity to meet him, don’t pass it up. He helped articulate to the buyer that the acquisition of this domain would be beneficial for his company.
Within Domain Holdings we talk what seems like every day about how unique and complex each and every transaction can be. This transaction proved to be no different. It was the culmination of good old fashion hard work, numerous outbound marketing efforts, old and new relationships, and teamwork that made this transaction happen. Without all this, I wouldn’t have a story to write.
I’m excited to see what comes next. As we come across numerous opportunities daily, we know the domain industry is as strong as ever. Stay tuned for more . . . and thanks for reading my story.