For the most part we analyze domain name negotiation from the domainer or broker’s point of view.
Ryan Kulp is an interesting guy, he is the founder of Fomo, the world’s first social proof marketing platform. He is also a musician, coder and writes some detailed personal things about his life on his blog RyanCKulp.com.
Ryan did write a post about premium domain name negotiations from the buyer’s point of view.
He offered some solid points for startup founders on how to negotiate. Domain investors are going to have a problem with how Ryan classified domain investors.
Ryan put domain holders into three distinctive categories, squatters, holdouts and has-beens. You can read the post to see how he defines the last two.
this is the worst persona from which to purchase a domain name. many of today’s premium, unused websites are still owned by people who bought them in the 90’s, thinking “one day i’ll be rich!”
these menaces have simultaneously zero talent and unlimited leverage, a dangerous position. insurance.com, for example, cost just $15 per year to maintain yet sold for $35.6 million.
the challenge with domain squatters is they’re obsessed about valuations, so no number is “enough,” and it’s nearly impossible to convince them *you* are the offer they’ve been waiting for.
It would be nice when we are talking about names like Insurance.com (a pure generic) that people would abstain from using the squatter moniker. Certainly people like Garry Chernoff, Rick Schwartz and Scott Day along with many others are not menaces with zero talent. Besides the point that those who acquired true premium .com names in the 90’s are not thinking “I’ll be rich.” They are rich.
All in all the article was an interesting take on domain name negotiation from the buyer’s perspective. The sale price of Fomo.com was not reported, so I will take it there was an nda.
I am interested in learning more about Fomo to understand how the service works.