There was an interesting conversation that took place on Twitter with Mike, Elliot Silver and Andrew Rosener. The topic dealt with financing purchases and also getting equity from certain deals.
Andrew Rosener commented that he felt that this was the future of premium domain transactions.
The conversation started with Elliot’s tweet:
A domain name may have a “perfect buyer,” but that buyer still needs to have the funds to make the deal happen.
— Elliot Silver (@DInvesting) October 18, 2017
This is the future of all premium domain transactions
— Andrew Rosener (@andrewrosener) October 18, 2017
Give your thoughts, and if you have ever gotten equity for a domain transaction.
Very few domainers are going to be interested in equity. A big roadblock to getting a deal done (too complex) and most of the time the company will not be successful
The domain does not leave your ownership without full payment.
I’ve brokered a deal that had equity tied in and I’ve sold a name with equity. One company sold to EA and the other Apple.
Snoopy, if someone wants a domain name bad enough, they’ll jump through the hoops. It is much easier to get cash but many entrepreneurs starting up don’t have the cash reserved for the launch domain so they settle for financing or equity.
I think I’d be concerned that a returned domain from a failed buyer’s business would leave me with a domain with a stigma of failure. Who would want to revive a domain that established a footprint but then subsequently crashed and burned?
Paul – That’s an interesting take on the situation, and maybe one to consider.
Certainly a possibility! Additionally, if the seller accepts more than 4% equity they would be considered an insider? They might even inherit potential liabilities once they take the domain back?
I would like to see the template/contract that covers all this/these possible eventualities…
Webex.com and several others were nice equity, cash deals for us in the past. Chatcast.com, CodeStream.com are some recent ones we are doing cash/equity deals with.. This model is why we started and launching CONTRIB so you can shard up the asset and use blockchain to manage the transaction.
Good
If the domain being sold has great potential, and the purchasing company is either a public stock company or has plans to go public, then it might make sense to accept equity? Seller would only have to wait 12 months before their shares could be tradeable.
Might as well be.
“This is the future of all premium domain transactions” Agree at the premium com poss AI specific end for startups as part of there (marketing) funding pitch. Access to the right or any start up a difficult I have tried in the Chinese markets new technical words/terms offer as global business generics opportunities “Cyber” being an example that will supersede “Wangluo”.
CyberSuo – CyberAnquan com – CryptoAnquan – AnquanWanglou – CyberBaoxin to serve (and persists) the common elements of an aggregate / brand platform Tough to access the team.
One can expect lots more regulations regarding domain names and the industry if/when banks start financing domain as a common practice. A lot more anonymous loopholes will be closed with the addition of more regulation as well.
A question at the last Orlando Domain Conference, how many premun domain names have been funded, the question can be ridiculous, but with you winning some of you in a year after tax you can not pay in cash a domain name to the seller of the premium domain by escrow to the seller, has it been interesting to know this new domaining market?
Great convo here and I agree this will be an option most used on those premium names that will require a lot of investment income in order to get. The beauty of being able to finance it simply is the business or individual who does it will be able to clearly see the benefits of the domain. If it is a business they can increase their profits and use this to consistently pay for the domain.
On the seller side this is awesome because you just now created a profitable residual income stream. This is a good option to offer potential buyers who really want the domain but do not have all the funds up front.
– Will