Pros and Cons of Domain Broker Exclusivity

Elliot Silver
-
3

Most domain name brokers require an exclusivity agreement before they begin to sell a domain name. The agreement protects them from getting screwed if a domain owner sells a domain name that they have agreed to broker. It also requires that the owner agree to a commission during a period of time, whether or not the broker closed the deal.

In the past, I found myself torn when deciding on giving a domain broker an exclusive listing for one of my domain names. Having to pay a commission regardless of if it was earned is less appealing to me, but there are plenty of benefits to an exclusivity agreement.

I’ve had a number of discussions with domain brokers and investors regarding exclusivity, and I can respect a broker’s need for exclusivity. Here are some pros and cons to signing an exclusivity agreement with a domain broker:

PROS:

Read More

PR: DataCenter.com Sold for $500k

Elliot Silver
-
1

According to a press release this morning  on Yahoo Finance, “XBT Holding Limited announced the acquisition of the datacenter.com domain name, for the reported amount of $500,000.” It appears that the registrant information for the domain name changed in the middle of May from a Tortola company to its current registrant.

If the DataCenter.com domain name sounds familiar to you, perhaps that is because it sold for $352,500 in Sedo’s Great Domains held in May of 2011. XBT also reportedly acquired the Servers.com domain name for $300,000 at an auction last year. It does not appear that Servers.com has launched yet based on the landing page I currently see, but you can sign up to receive updates when the brand launches.

Acquiring DataCenter.com is a good example of a company paying a fair price for an excellent domain name that will help grow and expand its core business.

ICM Registry: Sex.xxx Sells for $3 Million

Elliot Silver
-
5

According to an email and press release I received this morning from Stuart Lawley, Chairman and President of ICM Registry, the Sex.XXX domain name just sold for $3 million. This deal is “part of a groundbreaking $5 million, multi-year deal with ICM Registry.” The buyer is a company called Barron Innovations, and they acquired “more than 40 Premium Generic Keyword Domains” as part of this large deal. The payment terms were not announced.

Based on the Domaining.com list of the largest domain name sales of all time, this sale would rank as one of the 25 largest publicly reported sales. The $3 million reported price tag ties the sales of Candy.com, Vodka.com, and Loans.com, all of which are recorded on the list at $3 million each. Sex.com was reportedly sold for $13 million in 2010.

The press release contains much more information about this sale, and I published it below for you to read:

Read More

Using CrunchBase to Find a Domain Buyer

Elliot Silver
-
8

There are many ways to find a buyer of a domain name. I’ve discussed how to use LinkedIn to find a domain name buyer, and I also think CrunchBase could be a helpful tool to identify prospective buyers as well.

Generally, I use Google the most regularly to find a domain name buyer. I search the keyword term in Google, and I can usually create a list of companies to target. If I was interested in selling EventManagement.com, I could search Google to find companies that would describe themselves as event management companies or find prospects that offer event management software. This has been most effective for me in finding companies that may have an interest in buying domain names.

CrunchBase can be searched for these prospects in a similar fashion, and it gives me additional reference information like funding, company creation date, and founder information. One of the biggest advantages to CB is that I can see how much money a company has raised and when the funds were raised. A company that is newly flush with cash may be more likely to acquire a great domain name in the aftermarket than a company that isn’t profitable and hasn’t had a funding round in years. I can also see what other products and services the company offers, and do additional research to see if the company tends to be acquisitive when it comes to domain name assets.

One limitation to CrunchBase is that

Read More

Garry Chernoff Sells Scada.com for $110k

Elliot Silver
-
6

Last week, I published an article about Garry Chernoff’s sale of Jet.com, which is now reportedly owned by the founder of Diapers.com, Mark Lore. Although the sale of the Jet.com domain name was private, I learned about another nice sale that Chernoff’s company (NetIncome Ventures) just closed. Scada.com was sold for $110,000 in a deal brokered by Darryl Lopes at DomainNameSales.com.

If you visit Scada.com, you can see that it is owned by a company called B-Scada, Inc. Before visiting the website, I was not aware that SCADA is an acronym for “Supervisory Control and Data Acquisition.” According to the website found on its newly acquired domain name, B-Scada, Inc. was established in 2003, and the company is based Crystal River, Florida. Prior to the acquisition, it appears that the company had been using B-Scada.com or BScada.com for its website.

When reporting the sale, Chernoff mentioned that

Read More

10 Worst Kinds of Domain Name Prospective Buyers

Elliot Silver
-
21

If you own valuable domain names, you probably receive offers on a frequent basis. Some prospective buyers are fair and reasonable, and others are frustrating or even angering. If you’ve been in the business long enough, chances are good that you’ve come across prospects  like the ones I listed below.

Without using specific examples, I want to share what I think are the ten worst kinds of domain name prospective buyers. These people can make investing in domain names less enjoyable, and at the very least, make the business of selling domain names more challenging.

I invite you to share other types of buyers that I missed in my list. I am sure there are other kinds of bad prospects that make life difficult for all of us.

  • Prospective buyer who has the money and
    Read More
1...158159160...254Page 159 of 254