I haven’t shared this story before, but I might as well share it with you. It’s a story about how my being spiteful cost me money. Probably a considerable amount of money. I am not going to share the domain name because I don’t think it’s polite to reveal private negotiations without the other party’s permission.
I saw a solid .com domain name on Sedo in 2011, and I made a $500 offer for the domain name. The domain owner counter offered at around $1,500. I decided to try my luck again and I offered around $700. The owner countered at around $1,000.
Each counter offer brought us closer to an agreeable amount for us both, and figuring that we were getting close, I offered $800 trying to seal the deal. The owner then sent the domain name to a public auction. I was pissed. I went from negotiating in private to having to bid publicly. Out of spite, I decided I wouldn’t participate in the auction. I set a Gmail filter to delete any message from Sedo with the domain name in it. I lost the auction.
The month after the auction, several media outlets reported the acquisition of this domain name. They felt the story was notable for two reasons. First, the acquiring company was fairly new and it already received tens of millions of dollars in funding. Second, most of the articles were of the opinion that the price for the domain name was cheap, since the auction ended at under $5,000.
At the very least, I lost out on many hundreds of dollars, which is the difference between what I could have paid and what they paid. In all likelihood, I lost out on more because I probably would have had a much higher price tag, and that company certainly would have been on my radar screen.
I am not knowledgeable about the industry for which this domain name is related, so valuing it was a bit tricky. Yes, in hindsight, it’s easy to say that the purchase price was a great deal when a leading company bought the name. However, at the time of the bidding, I didn’t know what an end user would value it at.
The fact that I was spiteful cost me money here. Luckily, sort of, an end user bought the domain name on the cheap, so my “realized” loss was fairly limited. Had it been flipped for a huge profit, I would really be kicking myself!