Thoughts

Andrew Miller

March 10, 2024

Celebrating Significant Domain Transactions with an Impromptu Video

On Friday, I quickly created a spontaneous video with my phone that I termed an “Emergency Press Conference”, borrowed from Barstool El Presidente Dave Portnoy. I did this because I was excited that we Hilco Digital Assets had just consummated two of the more important domain transactions that I have ever had the pleasure of overseeing and had crossed a major milestone in terms of total transaction dollars for the deals we have advised on in Q1, 2024. I did not plan for the video to be seen by as many as it has but I am happy people liked it so I am resharing it below. One of the deals I refer to will be announced tomorrow morning, and once it is I will share that story.

The Realities of Ultra Premium Domain Negotiations

I am a broken record when it comes to writing about the negotiation strategy of having a ZOPA (zone of possible agreement). There are a lot of misconceptions as it relates to ultra premium domains. It is my intent to highlight one a week here for the next few weeks. I often say, domain names are often not acquired by the company “you” believe should do so. The main reason for that is because “you” don’t truly know the behind the scenes workings, goals, dynamics, vision, and financials of the company. Just because you read that a company raised $55m does not mean they will spend whatever you think they should on a domain. You may assume, likely incorrectly, that they “must have” it and will pay whatever you ask. In my 28 years of experience working with so many on both buy and sell side, it is actually the opposite. The buyer most likely to walk away from a deal or and NOT must have a domain is a company like this. That money needs to pay payroll and get them enough runway to have an exit. In fairness, what on earth do “you” or “I” know about their business. Nothing. They know best, they know where their limit is. Not you, not me. They have really experienced investors and board members for a reason.The way deals do get done with these companies, which they do, is to have a clear, realistic ZOPA. For those that I work with on overseeing the sale of a premium domain asset, they know that an agreed on ZOPA is a requirement for me to work together.

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