Thoughts

Andrew Miller

January 5, 2025

The Hilco Digital Way

One thing is certain; my personal goal and our mandate at Hilco Digital Assets is to work relentlessly, strategically, and intelligently on behalf of the category defining and exact match domain assets we own and represent for our partners and clients. This starts with deep dive research, daily reading of the news (especially venture news), refinement of that research, carefully tracking all communications, and ongoing, regular dialogue with potential buyers or sellers, casting the widest net possible. When that process is done right, then patience, time, education, and relationship development settles in and ultimately drives successful outcomes for all sides.

The Opportunity Cost of Time

A term I am known to refer to all the time is “ZOPA”, or “zone of possible agreement”, which refers to a price on a domain asset that will be a win-win for the buyer and seller. It is something I spend tons of time on with the domains we are overseeing for acquisition or sale. There are two schools of thought on the price for a one word, category defining and exact match brand domain name. The first is, there is only one Chat*com (our deal in 2023 and using it as an example only), and the price is $$ million and we will wait as long as we need to until someone agrees to that number. The second is, just like the stock market, one does not need to try to time the absolute highest price, and instead, is happy to achieve a ZOPA that is a win-win for all and gets the deal done. Sometimes, I find that people do not factor in the time value of the money now vs. some unknown day in the future, and the opportunity cost of that capital. What could I invest in today that will outperform getting X more for the domain in 3 years? I did a deal last year where my client took a lesser amount, to invest it all in BTC, because he believed BTC would outperform waiting for his ultimate price on the domain. Clearly, this was a smart decision for him, as he 5x his investment on the BTC. These are important processes that I spend a lot of time advising and discussing with those we work with.

Take a Look at our Domains!

We are proud of the category and exact match domains we oversee at HDA, one of the most valuable collections of domain assets in the world, https://lnkd.in/e6V-QDgh. Please reach out to discuss.

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