There are several startups currently interested in one of my domain names, and I am in discussions to sell it. None of these startups seem to have the capital available to make the purchase, but I am very confident one is going to be able to come to terms with my company in the next couple of months. My bet is that the deal I strike will likely be some sort of creative financing option, although I would be very happy to sell it outright.
While all of these startups understand the value of owning the brand match .com domain name, I don’t think any of them are looking at the biggest picture. I want to share this with you (without mentioning the specific domain name) because I think it is a good talking point on your own negotiations.
Out of the five businesses I am actively discussing this domain name with right now, four share the same name that matches my domain name. All of these businesses have inquired about the domain name directly or through a broker. There have been quite a few other inquiries, but these are the ones that are active.
Some businesses tend to look at a major domain purchase as optional or a “nice to have” asset rather than a necessity. That’s all well and good until one business gets the brand match .com domain name and becomes THE brand in that space. When that happens, the other companies will quite possibly have to rebrand, which is expensive and creates a diversion from running the business. A rebrand is almost certainly necessary when there are two companies with the exact same brand name in the same relatively niche field.
I mentioned that there are currently five active negotiations with four companies sharing the same brand name. The fifth company is operating on a totally different brand name with a non-com domain name. In speaking with one of that company’s principals, the reason for their total rebrand is because a major company shares its brand name, and that company absolutely owns and dominates the branding. This startup would either get confused for that company or could potentially face legal issues if it continues to grow.
In essence, this fifth company is forced to do a rebrand because it doesn’t own the .com domain name and related brand, which is almost certainly what will happen to the other startups who are trying to buy the same domain name.
I think it should be pointed out that when one brand gets the brand match .com domain name, it will be more difficult for the other brands to compete. I think and hope these active negotiations will end up in a deal. If one of these startups was smart and can’t afford to buy my domain name outright at this moment, they should lock in a lease to own and/or option to buy the domain name for a set price in the future. Obviously, I am biased, but it makes sense.