Tycho.com: How Erik Kaiser Cut a $75K Domain to $30K with Psychology
Erik Kaiser needed Tycho.com for his new startup, SHOPTYCHO. The domain was perfect—short, brandable, and exactly matching his company name.
There was just one problem: the owner wanted $75,000.
Erik didn't have $75,000 to spend on a domain. But he did have a negotiation strategy borrowed from a podcast episode—and it worked. He got the domain for $30,000.
The $75K Domain
When you're launching a brand-new startup, every dollar matters. Erik knew that having the exact-match .com domain would give SHOPTYCHO credibility, make the brand memorable, and improve search visibility.
But $75,000 was steep—especially for a bootstrapped startup in the early stages. That kind of money could fund product development, marketing campaigns, or months of runway.
Erik needed a way to bring the price down significantly. Not just by 10-20%, but by more than half.
The Boxed.com Lesson
Erik had recently listened to an episode of the How I Built This podcast featuring Chieh Huang, founder of Boxed.com. In the episode, Chieh shared his strategy for acquiring the Boxed.com domain, which had been squatted on for years.
The squatter originally wanted $200,000 for the domain. That was a non-starter for Chieh.
Instead of negotiating on price alone, Chieh reframed the conversation. He pointed out that the squatter had likely registered the domain in the 1990s for $0.99. Selling it for $30,000 would represent a 30,000x return on that original investment—an incredible win by any measure.
The psychology worked. The squatter agreed to $35,000, far below the original $200K ask.
Erik realized the same approach could work for Tycho.com. Instead of arguing about the $75,000 asking price, he needed to understand what would motivate the seller to accept less.
Understanding the Seller
Erik did his research. He looked into the domain owner's background, online presence, and interests. One thing stood out: the owner was heavily invested in cryptocurrency.
This was 2022, when crypto was still riding high and many investors believed that smart plays in the crypto market could generate massive returns. The owner wasn't just interested in cash—he was interested in opportunities.
Erik saw his angle.
The Crypto Pitch
Erik reached out to the owner with a different kind of offer. Instead of focusing on the domain's value to him, he focused on what the cash could be worth to the seller.
His pitch: $25,000 in hand could quickly turn into $100,000 in crypto with the right investments.
The framing was brilliant. Erik wasn't asking the seller to take less money—he was offering the seller an opportunity. That $25,000 wasn't just cash; it was capital that could be deployed into crypto markets for potentially massive gains.
For a seller who was passionate about crypto and believed in its potential, this reframed the entire negotiation. Suddenly, accepting $25,000 wasn't a loss—it was a strategic move to access investment capital.
The $30K Deal
The owner appreciated Erik's hustle and creative approach to the negotiation. Rather than dismiss the offer outright, he countered at $30,000.
Erik accepted immediately.
He'd successfully negotiated the domain down from $75,000 to $30,000—a 60% discount—by understanding what motivated the seller and reframing the conversation around opportunity rather than price.
The $30,000 purchase gave SHOPTYCHO the perfect domain for their brand. Erik had successfully negotiated a 60% discount not by arguing about price, but by understanding what the seller actually wanted—and showing him how $30,000 in liquid capital could be more valuable than a $75,000 domain sitting idle.
The seller wasn't motivated by maximizing the sale price. He was motivated by having capital to deploy in crypto markets. By reframing the conversation around opportunity rather than price, Erik made the deal work on both sides.
You can follow Erik Kaiser on Twitter at @ErikKaiser for more insights on entrepreneurship and strategic negotiation.