I have a few domain names I want to sell. Because some of them have an extremely high potential to earn the buyer big money when turned into a prosperous, profitable business, I've thought about negotiation an extremely-low sale price for select domains, but under equity stake contracts (meaning the buyer gives me a small piece of the business(es) earnings used by that domain).
I don't want any legal advice here: What I want are ideas on such a thing when it comes to financial dues and obligations. I have never heard of such a thing, and I'm wondering if I'd be among the first to do this. For example, I sell a hypothetical domain called "Magic(dot)com" for $100, despite it being very unique and likely to sell for way more. I do require the buyer to sign a contract stating that any income made from any business that the domain is in connection with must pay me a 1% share for 'X' amount of years. We both take a risk, because if their business makes money with that domain, I will be legally required to be paid a percentage of the earnings -- so if they don't make much, neither do I.
I'm wondering about the feasibility of such a business plan:
- Is it an unattractive offer many buyers would shy away from?
- Does it seem like a justifiably fair way to sell a domain, while keeping a stake in it?
- Is this even done, or has this ever been done before?