General
Self-Inflicted Damage
Apr
For over 20 years, I’ve seen my fair share of ups and downs in the Australian domain name industry.
Over the weekend, the domain names Vouchers com au and Voucher com au expired and went up for auction.
These domains were held by the same registrant for over a decade.
They were sold to two different parties, and they got them for cents on the dollar compared to what they were once worth.
What makes this an interesting story is the history behind these domain names.
No names, no pack drill
All parties shall remain anonymous in the abridged telling of this story. To simplify reading, we shall call the original registrant “Tommy”.
Tommy had held on to these domains for over a decade.
He had also borrowed a lot of money from a private investor to develop these domains. Back then “deal sites” were starting to become a profitable industry for some smart players.
Tommy had the “gift of the gab”, but ultimately made promises he couldn’t hope to keep. Unfortunately, his investor was probably “stuffed” from the start.
Everything “turned to custard” for Tommy because of his lifestyle and wasteful spending. I can write this because I had many dealings with him back then. I would shake my head at some of his stories.
Sadly, another of my good friends ended up being badly let down by him.
The offer
Here’s where things get even more interesting.
As a broker, I obtained Tommy a cash offer of $110,000 (for both domains!) from a reputable businessman.
It was a great deal, but, perhaps blinded by his optimism, Tommy declined it.
He made a counteroffer that was simply unrealistic. The potential buyer, frustrated, walked away and ended up finding an even better domain for a lower price.
Pride and Missed Opportunities
The saying “pride comes before a fall” rings true in this situation.
It’s also a harsh reminder that sometimes, the first offer can be the best offer.
