You might get $1 Billion Dollars – and here’s how!

If you don’t ask, you won’t get. It’s simple as that.

Every offer on a domain that you own is tied to your response. You control its sale and whether you will make money, or not.

As I said in the past, using buy it now pricing at Sedo might work for some – if they are comfortable with how they priced the domain at the time of its listing.

It does not work for me; negotiation is the key.

Not every negotiation will lead to a sale. One has to be a confident domainer and utilize experience along with the proverbial ‘gut feeling’ when negotiating with a potential buyer.

Back to the $1 billion dollars.

Apparently, Instagram – the image processing and sharing service that was sold to Facebook for $1 billion dollars – didn’t just get that number as a ‘gift’. The Instagram CEO, Kevin Systrom, originally asked for $2 billion dollars.

Systrom negotiated, perhaps overly-confidently, and thus eventually ‘trimmed’ his asking price down to $1 billion dollars. For an 18-month old start-up, that’s still a lot of money.

When dealing with a potential buyer, hidden behind anonymity or not, you are in control of your profit and negotiating the price is mandatory.

Comments

  1. very motivating post, thanks Theo

  2. I bet he wouldn’t have gone under $1 Billion, especially dealing with FB after the Social Network movie (the scene about 1$ Billion being ‘cool’).
    The password to post comments here is a real mother!

  3. Guy 😉 You’re welcome.

    @Domains – Sometimes it pays off sticking to your guns 🙂 The password sets a cookie so you won’t need to copy/paste it next time 😀

  4. Instagram is huge success story as Facebook pair $33 per Instagram user and none of these users pays anything and this app doesn’t even have adds. So this deal is ridiculous when it comes to income but it’s great addition to Facebook web properties.

  5. Today got near mid $XX,XXX offer through our website form and it was a starting offer.
    Replied that not interested.

  6. Negotiation is an Art, not a Science. Comparable sales deals etc help with ‘ball-parking’ & supporting a desired sales number – but, the real moola is in making a market…

    …Making a Market for your domain says that a domain is unique, its potential is unlimited in the right hands, and, that the price you pay will be cheap as chips at this price in the future…

    Making a market for a domain is about pitching a value for your domain that senses the value someone could create using this domain – ie visualising a future value of, say, a business that may be built on this domain, and, pricing the domain, not for its undeveloped value today, but for its potential value in the hands of the buyer tomorrow.

    Dazzle the buyer with the riches embedded in your unique domain – and ‘make a market’ for your domain in the buyer’s eyes.

    Reg fee domains become anything in the right hands (Facebook, Google, Microsoft et al).

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