Several years ago, Mode made an important domain name acquisition. The company had been using ModeAnalytics.com, and it acquired the brand matching Mode.com domain name. I had been a bidder in the asset auction that was the precursor to the sale. When I saw it was later being represented by Joe Uddeme, I kept in touch with him about the name as it was being marketed.
Not surprisingly, Joe successfully brokered the sale of Mode.com. I believe I already knew that. What I did not know is how much the company paid to acquire Mode.com.
In an article published on LinkedIn by Derek Steer, who was formerly CEO of Mode and later founded a business called Superframe, the purchase price and details about the Mode.com acquisition were revealed. Mode paid $300,000 to acquire Mode.com using a payment plan. Based on what I am seeing in the domain name aftermarket these days, that is quite a good deal.
Derek shared more information about the acquisition of Mode.com as well as some of the issues that came along with changing domain names. I think domain investors will benefit from reading Derek’s article to get a better understanding of what domain name buyers need to consider when acquiring a domain name of this caliber.
You can click the LinkedIn link to read Derek’s article:
“That structure is absolutely insane. Honestly, the entire domain acquisition market feels gross. There are conflicts of interest and misaligned incentives everywhere. When you hire someone to buy a domain for you, they get paid more if they buy at a higher price. And somehow that’s just how it seems to be done.”
Not all buyer brokers work this way . . . Shop around.
That point is true, but I think Joe was representing the seller of Mode.com – not the buyer. I have Joe’s newsletters from 2018 where Mode.com is listed for sale without a price.
Great deal for buyer. Easy for buyer to make 5 times what he paid for it .Depends on broker and if you know them personally,I think you don’t expect them to get you a great deal and you want to pay them average .It takes time and effort .
If you overpaid for a name using another service ,maybe next time negotiate payment ahead of transaction.