How much should I pay for the domain name for my business? How much is too much and how do you measure that? If you have a business online or a business with online presence (…which, let’s face it, is every business now!), you must have asked yourself those questions.
The other factor to take into account is how much is the name worth to its current owner? Alan Dunn, MD of NameCorp®, has some answers in his podcast. It gives an insight on creative domain deals and some inspiration for entrepreneurs eager to get the perfect name for their business.
“If you want a domain name, then trying to understand how much the market value of that particular domain name is, it’s really not the right place to start. Rather, you should create a strategy to understand the owner’s relative value of money, his or her desire to sell, and then craft an offer that is within that window.”
Alan Dunn, NameCorp®
Here is an extract from the podcast with an inspirational domain acquisition story:
I’ll give you a perfect example of why strategy is important. Last year we were tasked with acquiring a domain name, and this particular owner didn’t want to sell. The domain happened to be a gift from her late husband and she had, as one would expect, a lot of emotional attachment to the name. It also didn’t help our cause that she lived in a very nice home in a very wealthy neighborhood, so her relative value of money was likely pretty high. After speaking with her, we knew any purchase would have to be more than just about dollars. So we rolled our sleeves up and dug in deeper. By doing so, we understood more about her late husband’s philanthropy, some important organizations to the family, and even some future goals of her children. We ended up executing an offer, which consisted of cash, a charitable donation, contributions to the childrens’ university funds, and even a site visit where her daughters can meet the company founder. For me, this was a very special win. We not only secured a domain name, but also gave back and helped forge possible meaningful future relationships.
A successful domain name acquisition or sale simply comes down to whether both parties find meaningful value in the terms of the offer. Everything else is pretty much strategy, relationships, timing, and a bit of luck. Don’t be afraid to get creative.