Erik Kaiser's Strategic Purchase of Tycho.com

Erik Kaiser shared an insightful story on Twitter about his approach to acquiring premium domains. You can follow him at @ErikKaiser for more of his entrepreneurial insights.

The Inspiration

Erik spent $30,000 on purchasing the domain tycho.com, which was originally listed for $75,000. He was inspired by a technique he learned from a How I Built This podcast episode featuring Chieh Huang, the founder of Boxed.com. In the podcast, Chieh shared how he negotiated the purchase of boxed.com from a squatter who initially asked for $200,000. Chieh convinced the seller to accept $30,000 by pointing out that it was a significant return on an investment likely made for $0.99 in the 90s. They eventually settled on $35,000.

The Negotiation

Applying this logic, Erik reached out to the owner of tycho.com for his new startup, SHOPTYCHO. He discovered that the owner was heavily invested in crypto. Erik proposed that $25,000 could quickly turn into $100,000 in crypto, making a strong case for having cash to invest. The owner countered at $30,000, appreciating Erik’s hustle and negotiation tactics.

Key Takeaway

Erik’s experience highlights the importance of understanding the seller’s motivations and suggesting how the cash from the sale can be used to meet their interests. This approach not only validates their interest but also makes them more flexible in negotiations.

Conclusion

Erik Kaiser’s successful acquisition of tycho.com for $30,000 demonstrates the value of strategic negotiation and understanding the seller’s perspective. His story serves as a valuable lesson for entrepreneurs looking to invest in premium domains to enhance their brand’s trust and visibility.