Always great to start off the week with a fierce statement from the world’s top domain broker, Drew Rosener.
The multi-year winner of the coveted Escrow.com award of Top Brokers gave a strong response to Rick Schwartz‘s reference to disclosing domain sales.
Said the Domain King:
Not reporting domain sales is a disgrace.
In all my years, not one entity ever asked me for an NDA before the sale was made.
If an NDA is employed, it should never exceed 3 years.
Unreported sales have stunted the growth of the domain industry by many years. Possibly forever!
Of course, Rick’s approach to how he reports his best and biggest domain sales is a personal choice that has delivered results, time and again.
Meanwhile, Media Options founder, Drew Rosener, quipped in response:
Not true at all. Fake news. The fact that idiots disclose their domain sales is precisely what is holding back the industry. It sets terrible precedent. Some lettuce handed dipshit sells a killer domain name for 6 figures. THAT is the norm. THAT is what will get held as a “comp.”
Sales comps set back deals because it anchors a buyer on a price range or value.
I don’t want ANY outside party influencing the value or price of a deal I’m doing. NONE.
Comps are for the weak and uninformed.
These two opinions stand in antithesis to each other, indicating a polarized approach to domain investment strategies. Let’s analyze and review their core elements:
Transparency vs. Secrecy:
Rick believes that reporting domain sales is essential for the growth of the domain industry. In his view, unreported sales harm the industry by limiting available data that can benefit others. Drew, on the other hand, argues that reporting sales harms the industry because it sets unnecessary precedents. He believes that disclosing sales prices allows unqualified individuals to affect the broader market with misguided comps (comparables).Impact on Industry Growth:
Rick asserts that unreported sales have caused long-term damage to the domain industry, holding it back for years or possibly forever.
Drew believes the opposite: reporting sales holds back the industry. For him, the reliance on past sales (comps) to anchor future deals is what restricts the growth of the market.Value of Comps (Comparables):
Rick does not explicitly mention comps, but his focus on transparency suggests he values reported sales for providing pricing data that others can use to make informed decisions.
Drew considers comps to be a negative influence, dismissing them as tools for “the weak and uninformed.” He argues that they limit negotiation flexibility and set artificial price expectations.Negotiation Philosophy:
Rick appears to advocate for openness, suggesting that transparency benefits all parties and allows for a healthier market environment.
Drew prefers secrecy, emphasizing that he doesn’t want outside factors influencing his negotiations. He believes deals should be set without external reference points like prior sales, which he views as harmful to the pricing process.Use of NDAs:
Rick acknowledges the use of Non-Disclosure Agreements (NDAs) but believes they should be limited to a maximum of 3 years.
Drew does not address NDAs specifically, but his argument against sharing sales data implies that he would likely favor using NDAs to keep transactions private indefinitely.Tone and Language:
Rick’s tone is more formal, focusing on what he perceives as the damage caused by secrecy in the industry.
Drew’s tone is informal and combative, dismissing transparency as “fake news” and criticizing those who disclose sales as “idiots” who damage the industry.
Overall, Rick values transparency and the long-term growth of the domain industry through reported sales, while Drew values secrecy and independence in pricing, rejecting the reliance on comparables.
Despite these core differences, one thing is certain: The domain industry is a great place to be at and make money with! 😃
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