by Tsani Domain names are increasingly recognised as strategic assets that influence trust, customer acquisition cost, conversion, and pricing power. Global aftermarket activity reflects this shift, with the sector projected to exceed $1.17 billion by 2033 as digital branding and domain names investment mature. For domain owners, this recognition expands available deal structures. Rather than focus solely on cash sales, discussions may involve equity or a cash-and-share mix that supports a founder’s liquidity needs. Success depends on preparation, credible framing, and professional execution. The sequence below outlines a practical approach to presenting a domain name for a creative agreement.
Step 1: Verify and Prepare Your Domain Name
Verify ownership first: Ensure your WHOIS records are up-to-date and any DNS or trademark issues are cleared. This builds credibility and ensures you won’t have any unexpected delays in the future
Checklist – Domain Prep:
• Domain registration and WHOIS are current and correct.
• No pending UDRP or trademark disputes.
• Anonymized valuation notes (sales comparables, relief-from-royalty explanation, proprietary valuation models).
Step 2: Define Your Placement Preferences
Decide where you’d ideally like to see your domain used. This gives your asset a clear direction without exposing you to trademark issues or unwanted “why did you contact us?” situations.
You can define preferences such as:
• Sectors the domain fits best
• Company stage (early-stage, growth, established)
• Geographic focus
• Business model types (B2B, B2C, SaaS, fintech, health, etc.)
• Deal structures you're open to (cash-only, equity options, hybrid, licensing)
• Once you’ve set your criteria, you can choose how active you want to be:
• Passive: simply wait for inbound interest.
• Semi-active: respond only to founders who discover the domain through marketplaces or showcases.
• Active: use platforms like DomainsForEquity.com, where we can handle the research, matching, and outreach on your behalf professionally.
Step 3: Craft Your Domain Name Value Narrative
Connect domain name benefits to business goals: In your pitch materials , don’t just say “domain name is awesome.” Explain why it can help the company. For instance:
Trust & branding: Stress that a clear, relevant domain instantly signals credibility. Research shows 4 out of 5 consumers judge trust in milliseconds, and a simple, category-matching domain reduces friction.
Conversion and CAC: Explain that memorability leads to more direct traffic and organic referrals over time. This can lower their marketing spend. (No exact ROI promised, just frame it as a recognized advantage.)
Investor appeal: Emphasize that professional naming signals maturity and readiness to scale. Investors view strong, memorable domains, especially those that clearly align with the brand, as indicators of credibility and long-term potential.
Step 4: List the Domain Name: Where to Present It and Why It Matters
Choosing where the domain name appears shapes the quality of conversations you attract. Some channels maximise visibility, others strengthen credibility, and only a few support the kind of creative structures domain owners increasingly consider.
1. Bespoke Landing Page
Owners who want control over narrative and inquiry flow often build a simple landing page that highlights context, use-cases, and contact options. It suits domains that already attract attention, though discoverability depends entirely on the traffic you generate.
2. Traditional Marketplaces
Traditional marketplaces are mostly built around fixed-price transactions, which means conversations about flexible deal structures rarely gain traction.
Useful when: the domain is positioned for a straightforward cash acquisition
Limitations: no meaningful support for flexible deals; negotiation flows built around fixed cash expectations rather than creative structures
3. Platforms Built for Creative Deals
Domains For Equity offers a structured environment for deals built on partnership rather than a single transaction. The platform serves as a meeting ground where domain owners, founders, and investors explore structures that align incentives and long-term vision, creating a setting where conversations move past price and into strategy.
Follow the step-by-step guide if you are a domain owner wanting to list a domain name.
Step 5: Anticipate and Address Founder Objections
Prepare honest answers: Founders will likely raise concerns about price, necessity, or logistics. Common objections and how to handle them:
• “We can’t afford [a big domain].” – You can propose a hybrid deal (e.g. partial cash up-front with equity or just equity). Emphasize flexibility (“we’re open to a mix of cash now and equity later”). Never demand a fixed price.
• “Our current domain works fine.” – Acknowledge their progress, then share data: for instance, “Studies find that clear, memorable domain names reduce conversion friction. Even if your site works, a strong name could amplify word-of-mouth and press interest.”
• “We’re not sure about giving equity.” - Explain that domain-for-equity deals often include standard terms (e.g. vesting or price floors). Stress you’re looking for a win-win. Accepting equity is like a “bonus” on top of cash. It offers participation in future growth without replacing immediate value. Still, keep in mind that founders rarely grant large ownership stakes, and offering more than 15% may indicate they undervalue the business. Your goal is a reasonable mix.
Checklist – Common Concerns:
Prepare a brief on equity mechanics (common terms, vesting, roles). (Example: Domain owners often suggest a short vesting or performance-based release of shares.)
Have replies ready for “Why equity vs. cash?”, supported by clear points on the benefits of equity deals. Explore our article for deeper insights.
Research any legal/financing limits (e.g. regional securities laws) just enough to know if major red flags exist. Indicate openness to getting lawyers involved.
Step 6: Negotiate and Secure Terms
Get the deal on paper: Once a founder is interested, move to a term sheet or simple agreement. Outline key terms clearly:
Equity split: What percentage or share class will you receive? (Keep in mind dilution; a small equity percentage in a growing startup can be valuable)
Cash/Hybrid amount: How much cash (if any) is exchanged at closing? Decide if some cash is required to secure the transfer.
Vesting and milestones: Suggest that equity vest over time or upon meeting milestones (to ensure both parties remain committed).
Domain delivery: State that you will transfer the domain (via escrow or registrar change) once terms are signed.
Legal documents: You’ll need a domain name purchase agreement (or asset purchase agreement). Use clear, simple language. You can Refer to our article Legal Considerations in Domain-for-Equity Contracts for guidance.
Tip: Consult an attorney or use a standard term-sheet template. The company’s valuation should be provided by the founder or an independent professional. Use that figure as the basis for determining the equity portion and focus on recording the agreed terms, including percentages and conditions.
Wrap-Up and Next Actions
You’ve now positioned your domain name as a growth asset. Remember: founders respond to concrete value, not speculations. Keep communications fact-based and aligned with their goals (e.g. trust, growth). Even if a founder isn’t interested, a professional approach leaves doors open for future deals.
Next Steps: If you haven’t already, consider listing your domain on the Domains for Equity platform or similar marketplaces to attract qualified founder inquiries. Always do a final domain audit: confirm ownership transfer methods, get legal advice on equity issuance, and be ready to facilitate the domain hand-off once shares are transferred.
Final Thoughts
Positioning your domain names as strategic assets, and presenting them through a clear, well-prepared process strengthens the path toward better outcomes for all parties involved. It gives founders the clarity they need to assess fit, sharpens early conversations, and creates space for deal structures that reflect both the value of the asset and the ambition of the team using it.
Showcase your domain name where serious founders are searching. DomainsForEquity.com helps you turn ownership into opportunity.