Namescon 2024 | Andrew Miller’s High-Stakes Deals — How Does He Do It?

Summary

In this engaging session, industry veterans Andrew Miller and Ron Jackson delve into the high-stakes world of domain deals. They discuss Andrew's remarkable sales history, including notable domain sales like beer.com for $7 million and the record-breaking chat.com for $15.5 million. The conversation highlights Andrew's unique business philosophy influenced by the Grateful Dead's collaborative spirit and the importance of doing what you love. They also touch on the challenges of domain valuations, the impact of reported sales on market perception, and the parallels between the domain industry and other emerging markets like sports betting.

Takeaways

• 😀 Andrew Miller's success in high-stakes domain deals is attributed to his detailed approach and transparency in sharing how he makes these deals happen.
• 🤝 The importance of collaboration in business is highlighted, drawing parallels from the Grateful Dead's approach to their music and their influence on businesses like HubSpot.
• 🎓 Andrew Miller's early career in the domain industry started with learning from his family and early business ventures, which helped shape his philosophies that serve him today.
• 🔍 The value of domain names is compared to other assets, emphasizing their unique potential for high returns on investment due to their singularity and the buyer's perception of value.
• 💡 Andrew's philosophy of doing what you love is underscored as a key to success, drawing from his love for music and how it translated into different stages of his career.
• 🤑 The conversation underscores the importance of confidentiality in domain sales, as public disclosure of prices can anchor and limit the potential for higher valuations.
• 🏆 The comparison between domains and sports betting/daily fantasy highlights the obsessive nature required to excel in these fields and the tight-knit communities that form around them.
• 🤝 The concept of 'coopetition' is mentioned, where both competition and cooperation can drive the industry forward and benefit all parties involved.
• 💰 The script discusses the challenges of domain valuation due to the unique nature of each domain and the difficulty of appraisals in such a market.
• 🚀 Andrew Miller's history includes significant sales such as beer.com for $7 million, demonstrating the substantial value that can be achieved in the domain industry.
• 🤖 The script touches on the early days of the internet and the foresight of brands like the NFL and the Grateful Dead in leveraging the technology for business.

Q & A

What industry is Dennis excited about and why?

Dennis is excited about the industry involving high-stakes deals, particularly those made by Andrew Miller. He is interested in the details and strategies behind making such big deals happen and appreciates Andrew's transparency and detail-oriented approach in sharing how he accomplishes these deals.

What is the significance of Andrew Miller's sales history mentioned in the script?

Andrew Miller's sales history is significant because it showcases his successful track record in the domain industry with high-value sales such as beer.com for $7 million, insurancequotes.com for $6.5 million, and diamond.com for $6 million. These sales demonstrate his expertise and the substantial returns in the domain industry.

Why is the Grateful Dead mentioned in relation to Andrew Miller's business philosophy?

The Grateful Dead is mentioned because Andrew Miller's business philosophy was heavily influenced by the band. Their approach to music, collaboration, and treating their fans with openness and generosity parallels the principles he applies in his domain business, emphasizing the importance of collaboration and doing what you love.

What is the connection between the Grateful Dead and HubSpot's success?

HubSpot's co-founder, Brian Halligan, was inspired by the marketing lessons of the Grateful Dead, which he detailed in a book. These lessons influenced the strategies that led to HubSpot's success, showing a direct connection between the band's principles and the company's $32 billion market cap.

What is the 'Zone of Possible Agreement' (ZPA) in the context of domain sales?

The 'Zone of Possible Agreement' (ZPA) refers to the range within which a deal can be successfully negotiated between a buyer and a seller. It is the price range that both parties are willing to accept, which can vary greatly depending on the unique circumstances of the deal.

Why does Andrew Miller prefer confidentiality in domain transactions?

Andrew Miller prefers confidentiality because it prevents anchoring, which can limit the potential value of a domain by setting an expectation based on previously reported sales. Keeping prices undisclosed allows for the market to bear what it will, without being influenced by past sales figures.

What is the importance of collaboration in the domain industry according to the script?

Collaboration is important in the domain industry as it allows for the sharing of knowledge, resources, and opportunities. It enables professionals to help each other achieve better results, as seen in the successful partnerships between Andrew Miller and others like Larry Fisher, which led to significant sales like home.com.

What role did Michael Milken play in shaping Andrew Miller's approach to deal making?

Michael Milken influenced Andrew Miller's approach to deal making by emphasizing the importance of collaboration over competition. Milken's philosophy that '50% of something is worth a lot more than 100% of nothing' taught Miller the value of partnering with others to achieve greater success.

How does the script describe the domain industry's relationship with valuations and comparables?

The script describes the domain industry as unique because it lacks standardized pricing parameters and relies heavily on the buyer's perception of value. Domains are compared to pieces of art, where the value is determined by the buyer's desire and the potential the domain holds for their venture.

What is the challenge mentioned in the script regarding the perception of domain names by CEOs, founders, and investors?

The challenge is to make CEOs, founders, investors, VCs, private equity firms, and family offices truly understand the importance and value of domain names. Despite some progress, there is still a significant gap between the current perception and the ideal understanding of domain names' significance.

How does the script relate the domain industry to sports betting and daily fantasy?

The script relates the domain industry to sports betting and daily fantasy by highlighting the similarities in their communities. Both industries have tight-knit, early-adapter communities that are diverse, entrepreneurial, and heavily engaged in social media and online platforms.