“A great domain will appreciate in value over time. A domain owner may hold a domain for many years before they consider selling, especially if they don’t need the money right away.”

Ian is the founder of Fat City Properties LLC, a company specializing in domain name acquisition, sales, development and consulting. He has been investing in domains and helping clients acquire domains since 2001.

Ian provided the following useful article on how to best present an offer when someone else owns your ideal domain name.

Does someone else own your ideal domain name? Purchasing a domain that is already owned is not always a simple process. There are many things that can get in the way of a potential deal. Here are some of the most common:

 

• You offered something other than money for the domain:

Bartering for a domain name rarely works. We’ve had offers ranging from web development and hosting all the way to wine, steaks, or a good time. If you can’t afford a domain, ask if the seller has a lease option, if they offer payment plans, or for high value domains, if they would accept an equity position in your company in exchange for the domain.

• The domain may have cost much more than what you’re offering:

Are you offering $100 for a domain that cost its owner $25,000? There is a common misconception that all of the best domains were purchased many years ago by investors who only paid the registration fee for them.

Although that fact wouldn’t make a domain less valuable, it’s important to note that many of the best domains have changed hands since they were initially registered. Domains are often purchased by investors at auction, from their previous owners, or through portfolio acquisitions for prices that far exceed their registration costs.

Something else to consider: the registration fees for a domain that has been held since 1995 at Network Solutions until now, would total over $700 (in addition to the potential acquisition cost).

• The owner may be a long-term investor:

A great domain will appreciate in value over time. A domain owner may hold a domain for many years before they consider selling, especially if they don’t need the money right away.

 

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