How to get paid for your original domain name!

You went to a domain registrar and you spent a lot of time thinking of that perfect domain name. After many many tries, you found the one that you like, and you have no doubt that it will be successful. You set it up and throw up a holding page on it and start to plan your new website around it. You get a lot of work done and the concept is really starting to take shape. That's when you get the email:
Dear Sir or Madam,
It has come to our attention that you own XXXXXX.com. We own that trademark and we want you to release the domain immediately.
Sincerely,
Big Business
Ok, so that's not exactly what the email says, but it's the general idea. What do you do? Surely this big company could take you to the cleaners and they would probably win in court. Do you roll over and just hand it to them? Hell no you don't. You make some money is what you do.
You reply back to the company with:
Dear Big Business,
I legally purchased this domain name and I have done a lot of work on the concept that I plan to launch under it. I have spent countless hours and a bit of money getting the design together. The name is integral to the concept and I'd rather keep it. If,however, you would be willing to compensate me for the time and money I have invested already, I will be happy to release the domain name to you.
Sincerely,
Me
This is the scariest part. You send that and you're thinking to yourself, "What the hell did I just do? This company is going to roll right over me." Well, you would be wrong, and I will tell you why. If this company really wants this domain name, they will get it one way or the other. How you play your cards here is crucial. You see, it would cost them a tidy sum to sue you for it. Your goal here is ask for a bit less than it might cost them to litigate. They don't want to take legal action. They want you to release the domain in the quickest, and more importantly, the quietest way you can. They don't want bad press associated with the domain name. That would devalue the domain, and potentially their brand. No big company wants to have the image of a bullying big company. Trust me, I personally know this works with big business. I have dealt with this with some of the biggest players in the industry.
So what next??? They will most likely want to appraise the domain. Let this happen, but, at all costs, DO NOT RELEASE OWNERSHIP OF THE DOMAIN. If you do, they can take it legally and pay you nothing. After they appraise the domain, they will send you an email like this:
Dear Sir or Madam,
We have appraised the domain and would like to offer you $200 for it.
Sincerely,
Big Business
Wow!! That's not bad, but remember how bargaining works. They are giving you the classic low ball offer. They will pay more, but they aren't just going to throw out the first big offer. They're gonna make you work for it, and rightly so. You would do the same thing. So here is what you send back to them. Please don't copy these word for word, chances are, big business will be reading this as well.
Dear Big Business,
$200 does not cover my time and investment so far on this project. I cannot release the domain to you at a loss. I believe that $1000 will adequately reimburse me for time and effort. Please realize that in transferring my domain name to you, I will have to rethink my entire business model.
Sincerely,
Me
This is the counter-offer portion of the argument, and here is where things should get interesting. They will either counter your counter offer, or they will threaten legal action. Don't be scared if they do. It will cost them a bit more than $1000 to sue you, and it just doesn't make good business sense. Just keep going back and forth until you think that you have reached a fair price. Only when you have received correspondance indicating that legal proceedings have begun, should you start to worry, and also not that even if you DO get this letter, know that the option still exists to settle out of court.
The key here is to not be intimidated. Keep in mind what is going to be in their best interest. You DON'T have to roll over and take it. Also realize that the company may call you a domain squatter. Don't be offended. You just need to make sure that you at least have a "concept under construction" page at the domain name to prove that you have a project in mind for it. Make sure that you do this, so that if it does go to court, and you want to fight it, you at least had something there. If you just bought the domain and kept it to yourself, it looks like you bought it with the intention of trying to sell it for big money.
Even if that is the case, you need to look legit. No one knows what you are up to except for you, and no one has the right to force a domain from you. I personally know that this works, you just have to keep your senses about you and make smart decisions!!
Labels: domain registration, get paid for domain







