Michael Gargiulo, CEO of VPN.com. We help Fortune 1000, entrepreneurs and companies protect their brand.
Some of the purchases made on domain names have never been witnessed—and that’s because they make no headlines for their multimillion-dollar sales.
While the news media prominently discusses large-scale acquisitions, like call.com, which sold for over $1 million, and business.com, which sold for around $7.5 million (back in the ’90s), other deals far larger than those are quite often a pure mystery. But why?
These transactions almost always end up with stealth domain brokers, who are professionals tasked with obtaining premium URLs while essentially keeping the entire deal under wraps from the public eye.
The reason behind this secrecy is masked anonymity—and for good reason. Stealth brokers work wonders in the digital real estate market. They sell domains as investment goods, which allows the reselling of acquired domains at unreasonable nonmarket prices.
Why Some Premium Domains Are More Private
Unlike the traditional way of dealing with properties, some of the largest domain transactions are never made available for public viewing nor does the purchase get disclosed … these are stealthy domain deals that are premium and tend to stay nonconfrontational.
And this could (and does) happen for a number of reasons:
• Corporate Strategy: Companies acquiring domains due to rebranding or expansion, or new ventures, do not want their competitors to snoop around before the businesses publicly announce.
• Price Protection: The price can skyrocket overnight if a seller knows a Fortune 500 company is interested.
• Legal And Compliance Factors: A number of deals include sophisticated merges with negotiations, trademarks, regulatory bodies or other stakeholders.
Most of the time, buyers and sellers are bound to sign stringent NDAs in which they are bound not to disclose any detail of the transaction to the public. Companies have prioritized domain acquisition over the associated costs due to the multifaceted advantages, leaving others confused.
It may seem baffling why so many people would be willing to spend seven figures (or more) on a domain, but for numerous organizations, it is a well-calculated investment.
This is because some of these high value domains offer unique advantages, such as:
• Strengthening Brand Authority: Short, catchy domains increase credibility, allowing businesses to make a stronger statement.
• Enhancing SEO And Traffic: One-word .com domains are able to rank higher and garner more organic customers.
• Increasing Conversion Rates: Consumers are more trusting of brands that come with professional, easy-to-remember names.
• Delivering Long-Term Returns: Domains considered an expense instead of investment can reap the rewards in the long run by increasing value over time.
Take Tesla.com, for example. Musk secured the URL for a staggering $10-plus million, which he changed during the ’90s in alignment with their brand strategy. This aligns with my claim that spending tons on domain purchases was a smart move for Tesla. I mean, just look at how this worked for his brand!
How Do Stealth Brokers Get These Domains?
Domain buying and selling are often seen as causal processes, but stealth domain brokers are experts in acquiring premium domains.
For starters, stealth brokers monitor valuable domains and identify their owners, ranging from businesses to investors who sit on unused assets. They analyze domains’ history, traffic, age and sales history to assess their worth.
These brokers commonly take on the role of sellers. So, unlike corporations, they instead pose as middlemen, preventing price navigation based on identity.
What’s more, these brokers typically manage fair prices and smooth transactions through public cover. Brokers also arrange escrow services for both parties’ safety.
Of course, domain brokers like this specialize in industry regulations, ensuring NDA and trademark domains are followed licenses during purchase, which is designed to safeguard buyers from legal risks.
Many Of The ‘Big Deals’ Go ‘Undisclosed’
A good number of eight-figure deals go completely undisclosed, and while the ones that are famous get reported, these tend to slip under the radar.
Case in point: A famous Silicon Valley company spent more than $10 million on a one-word .com domain that was brought to light after the fact for an NFT site.
Stealth brokers, NDAs and distinct escrow arrangements keep these deals under the radar. While stealth purchases offer many benefits, some issues arise, too.
Identifying the seller becomes difficult because many domain owners are not comfortable giving away the domain without knowing who the buyer is. Leaky deals cause price inflation. If negotiations are not handled properly, word may get out, leading to an increase in the price.
Some domains are very old and therefore have a history of ownership, which can be contentious and problematic in terms of trademarking. But experienced brokers mitigate these risks to ensure deals close without unnecessary delays or publicity.
Obtaining Premium Domains While Staying Under The Radar
For those looking for domains of great value but want to do so without drawing attention, here are some tips.
First, hire a domain broker specializing in stealth negotiation. This can guarantee that the client remains anonymous throughout the whole process, including negotiations.
Next, make sure that you:
• Sign an NDA before any conversation. This is a great way of ensuring confidentiality from the start.
• Conduct survey valuation. Understanding market prices prevents paying a price above what is regarded as fair.
• Only use reputable escrow services. Escrow services guarantee security during the transaction and therefore should be employed.
Businesses indeed want domains that put them in the spotlight, but when they get the domains with the right strategies, they don’t have to worry about excessive exposure.
The world has and will still experience some of the biggest domain deals in history; however, not many people would know this. Stealth brokers make sure that brands, investors and rich individuals acquire premium domains without grabbing media attention.
If your goal is to acquire a premium, high-value domain privately, stealth brokers are your solution. The difference between a good brand and an iconic one could truly depend on the right domain.
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