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Domain Sales

My Typical “Lowball” Offer Response

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One of the most difficult aspects of domain name sales is that many people still have no idea how much a domain name is worth. It is always a bit humorous to receive a $100 offer shortly after receiving a 5 figure offer for the same domain name. Although it can be slightly frustrating to deal with uneducated offers, it comes with the territory. If there was a pricing model for domain names, it would be more difficult to get good deals, so I will take the uneducated "lowball" offers.

I thought I would share a typical response to lowball or uneducated offers for domain names. Most of the time, prospective buyers take this good-natured rebuke in a positive way, although there is always the potential for someone to get angry about it. After all, many prospective buyers will think I (or you) own a domain name they can use and I (or you) are not using the domain name in a productive way. This is obviously flawed thinking, but it is how many people think. I often wonder if they would think the same way about undeveloped property owned by → Read More


Purple is Now on Purple.com

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Earlier this month, I reported the sale of the Purple.com domain name. When the sale was reported, all signs appeared to show that the mattress startup, Purple, had acquired the Purple.com domain name. This has been confirmed.

If you visit Purple.com today, you can see the mattress company is now using the domain name. If you visit OnPurple.com, the domain name that was previously used by the startup, you will be forwarded directly to Purple.com.

This domain name acquisition makes a ton of sense. When people hear of a company called Purple, they generally assume it can be found on Purple.com. Now, there (more…) → Read More


Keep Enough Cash for Taxes

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I generally don't preface an article with a disclaimer, but I think it is important to note at the outset that I am not an accountant nor should any of this be construed as accounting or tax advice!

Let's say I buy a domain name at auction for $1,000 and re-sell that domain name a month later for $10,000. I might be inclined to go out and acquire an even better name for $10,000 or purchase two $5,000 domain names. I might even be inclined to buy a domain name for $5,000 and upgrade my office with the remaining $5,000. By doing this, there will be no money remaining to pay taxes.

When I sell a domain name, my first inclination is to reinvest the funds in another domain name or several domain names. I always like to keep great domain names in my portfolio, and reinvesting helps to ensure that my portfolio continues to improve. Even with this inclination, I need to be cognizant of the taxes that will be owed as a result of a sale. With a fluctuating business like domain investing, this can be a big challenge and can become a → Read More


Purple Mattress Upgrades to Purple.com

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At the beginning of September, I wrote an article about the Purple.com domain name. After contacting the owner to ask about the status of Purple.com, Jeff Abrahamson indicated to me that he was in talks to sell the domain name. Judging by a tweet Jeff posted a few days ago with his new url, ISoldPurple.com, it looks like Purple.com was sold.




The buyer of the domain name appears to be Purple, a mattress startup that was reported by TechCrunch to have been involved in a $1.1 billion deal. The mattress startup uses OnPurple.com for its url, and Purple.com would obviously be a major upgrade.

Although some of the Whois registrant information is obscured by Whois privacy, the part that is visible gives away who bought the domain name. The Registrant Organization is listed as (more…) → Read More


Looks Like HD.com Was Sold

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In my DomainTools Domain Monitor alerts this morning, I saw that HD.com was transferred from a China-based domain registrar to GoDaddy. The Whois registrant information has a privacy proxy service and the nameservers are generic GoDaddy nameservers, so the current owner of HD.com is still unknown. With this transfer to a different registrar (and a GoDaddy default landing page), it appears that the domain name was sold.

When I saw the transfer, my first thought was that Home Depot acquired the domain name. In my opinion, HD.com would be the perfect fit for the publicly traded company with a market cap of nearly $195 billion (disclosure: I own some HD stock). Based on the fact that Home Depot registers its domain names via CSC Corporate Domains and HD.com is currently registered at GoDaddy, my guess is that is unlikely.

There are quite a few large companies with HD as initials including: (more…) → Read More


Step Away from a Negotiation

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Negotiating a deal to its conclusion is an aspect of this business I enjoy. Negotiations can be exciting, frustrating, annoying, thought provoking, and emotional. Sometimes a negotiation reaches a point that it would be more productive to step away and hand the reigns to someone else.

It doesn't happen often, but there have been times that a stalemate has been reached. It sort of comes to a point where the counterparty and I have dug our heels in so deeply that progress has stopped and we aren't really getting anywhere. Taking some time to let things cool down is one approach, but it also gives the counterparty an opportunity to seek out a different domain name or find a different buyer. When this happens on a domain sale negotiation, it makes sense for me to hand the negotiation off to a trusted domain broker.

I don't love involving a domain broker when it isn't necessary. I value the effort and expertise of a domain broker, but I would prefer not to have to pay a commission and involve a third party in a private negotiation → Read More


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