I have bought and sold domains for years. It is a fun personal hobby of tracking a unique “digital stock”

A friend has a domain name that has value and recently received a fairly anonymous request to sell it.

That is great… but he doesn’t want to lose his shirt and find out that he sold the next Amazon.com for $100. He also doesn’t want break the bank.

Using some basic ideas around contingency and on-going revenue contracts, there are several ways to move forward.

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Simply respond with a basic statement that the domain is for sale; based on the worth of the domain today plus licensing fees for larger business usage.

The basic idea for maximizing the selling price of the domain is to create a sliding scale proposal that catches possible corporate/big business usage.

• If the guy is a high-school music teacher doing a personal project, you ask for whatever you feel it is worth and do a “in faith” sale.

• If the guy is Simon Cowell trying to get a good domain, you ask for $10-$25k, plus a percentage of worth over two to five years.

• If Simon lies and says he is a high school teacher, the selling contract reads that he pays the higher fee PLUS penalty for lying PLUS legal fees.

• If Simon lies and is just flipping it to another buyer, you receive 50% of the selling price if it is resold within two to five years.

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Of course the basic above can be utilized for many types of domain transactions, but they ultimately help keep you from being ripped off.