When I’m selling a domain, seeing it put to good use is one of my primary goals. Of course it’s not necessary to take this into consideration at all, but when you do it adds more texture to the deal and might change the way in which you structure the sale.
First, you want to have someone that genuinely wants the specific domain name you have. If you’re pushing hard to come up with reasons why they should own it, they probably don’t want it that badly. This is one reason why one-word domains are so powerful, they can be used by so many different businesses.
If an innovative startup wants the domain you have, striking a balance between cash and equity could allow the startup to get your name without having to shell out a lot of cash. This split can be written directly into the sales contract and issued as common shares of stock or through a convertible note.
I recently did this on a $12,000 deal for a one-word domain that I own and made a fair split between cash and equity to make it a good deal for me and affordable for the startup. At the same time I believe in the business and think it’s really going to take off and now have some skin in the game.
It can be all too easy to dismiss a buyer that can’t afford what you’re expecting for a name. Sometimes striking a balance between cash and equity can help you bridge the gap and potentially even make much more on the deal. Yes, you do take on some risk here but if you believe in the founder and the company this risk might be well worth it.