The 20 minute sale vs the 20 year sale. Behind the Candy.com Sale


Morning Folks!!
There are many ways to make a sale. Cash sales are made, done and each go
their separate ways. That works well in 99% of the cases. That's what makes the
world go round. Simple, give me money, I'll give you 'X' and everyone is happy.

But I also like and focus on 'Formula sales.' Those sales take time to
construct. Those sales require a formula that offers benefits to both parties.
Those sales last for many years because there is a residual that can last a
lifetime. Those sales are best for category killer domains but in no way limited
to them.

How do you get to one of those deals? First, by saying 'No' an awful lot
and not wasting time with folks that are unqualified. A legitimate inquiry has
certain elements in it. EVERY sale I have made with domains had this element.
EVERY ONE.

Think for a moment how you would approach someone if you really wanted
their domain. There would be things you would say and do in your email to convey
your sincere interest in a way that you would get a positive response. When
these elements are missing, the email is a waste of time to even answer. I
answer less than 1 in 10 inquiries. Just because you receive an email does not
obligate you to answer it. Many folks waste time answering garbage. Learning to
tell the difference will allow you to free up a lot of time and time is our only
natural resource.

Most of my deals are never 'Done.' :-) They are living and ongoing. These
deals are very complex. It is not unusual for the lawyers to take several months
to hammer at all the details. Plus they do get hammered out or I have no problem
walking away. The contract is a pre-nup. It has to be PERFECT! Why? Because the
surest way to lose a prime and valuable domain is with a bad contract. Some
folks even have that as the end game. All they want to do is get that domain in
limbo and then make a legal claim. So the contract is more than important.

The buyer of candy.com is a candy company that understands what the
candy.com can do to grow their business. The instant respect he will get when
his company strolls the candy show in Chicago in just a few weeks will be worth
being there to watch. They are not the biggest candy company, but they now will
have a piece of the puzzle that can change that. So no, it is not Hershey's.

Have a GREAT Day!

Rick Schwartz






8 thoughts on “The 20 minute sale vs the 20 year sale. Behind the Candy.com Sale

  1. UFO.ORG

    Always said that the mid cap to larger SME’s are the ones that can benefit most from the instant increase in brand awareness a killer domain can do for them.
    Even if we step away from the consumer sales… Just what does having candy.com do for the manufacturer that wants to attend trade shows and start selling industry equipment or lining up new stores. All new lines of business.
    Yes, at the trade shows and on all the retail adverts the big players will shrug their shoulders and know it was the one that should have been covered (to close out the competition).
    My guess, some big player will eventually have to buy this company out. And this URL will be a red rag in a bull market.

    Reply
  2. James

    Up and at ’em; nice early post!
    Can we deduce that it’s a fairly young company with big ambitions – or a niche candy manufacturer perhaps?

    Reply
  3. UFO.ORG

    As with the domain name approaches.
    Agreed. Most emails I get just lack the credibility and awareness of what a great domain is actually worth.
    Worst of all is I get offers for xyz domain and they say they are starting a business… and I know that activity they are talking about is comprehensively covered off in that particular class on the trademark register in that region/country.
    Seriously, anyone that thinks they can buy a great one word domain that has high brandability should 1) Check the trademark register (and all forms of resources to confirm there are not others with priority common law rights) and 2) Start thinking about numbers in excess of $50k.
    Lastly, the market has consolidated enough now that it is unlikely you can get some naive person to ditch their high end name for peanuts. If you approach buyers pretending you have no money then expect them to not even reply.

    Reply
  4. M. Menius

    I was just discussing with someone who the Candy.com buyer might be. We decided it was not a start-up because the domain would most likely be far too expensive. Hersheys maybe, but they are only one player in the candy industry.
    “The buyer of candy.com is a candy company that understands what the candy.com can do to grow their business.”
    And this is half the formula. Maybe all of it? –> Understands what a premium domain can do to grow their business.

    Reply
  5. Don M

    If I had to put money on it I would think 1800flowers is the buyer. Candydirect would be a second choice.
    1800flowers has the cash to buy such a name and knows the value of domain names.
    The only way for them to grow is by getting into the candy, wine business etc. This is just a wild guess of course.
    Don M

    Reply

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