Earlier this week, Epik led the purchase of HardDrives.com. Epik had already developed the site and was familiar with the site’s statistics. The buyer is new to the business of buying domains but he got a fair outcome. The seller got a fast close. Buyer and seller are both happy.
We are now running a similar (exclusive) process for the domains PearlEarrings.com and FamilyVacation.com. These are both excellent names with high development potential where the seller has decided not to develop them.
What is notable here is the following:
1. The buyer is not interested in owning a parked domain. He is interested in building a business. He is not a domain speculator. This is notable because it has implications for domainers whose traditional buyer (other domainers) are either tapped out or holding out for lower prices.
2. The seller significantly increased his chances of getting the domain sold by partnering with Epik as the 3rd party developer who could substantiate statistics about site traffic and monetization.
3. The buyer got a running start at building a business. Epik brokered the transaction for a modest escrow fee in order to have the opportunity to continue to develop the name on the Epik platform.
The recent lesson of Insure.com’s blockbuster sale for $16 million is also instructive. This was more than a domain. It was a website with a vast number of backlinks. In other words, development of the name reduced risk for the buyer, which in turn justifies a higher purchase price.
These are challenging times for many domainers. Innovation and cooperation are important ingredients for getting deals done, particularly when deals need to be done on short notice.