So, I might get razzed for this - but I figured I'd come to a place where I would receive useful insight on my situation.
Dilemna
Zillow wants to buy the domain that a website (optimized for iPhone which uses their API) I've created resides on for literally "a couple hundred bucks".
This seems like an easy way to take advantage of the work I've put in to building the domain/ranking.
Additionally, they've threatened to cut of API access if I do not comply with their wishes.
Data
It's located at http://izillow.net
Since launch the site has received ~50,000 visitors + links from techcrunch, apple, google (appengine) and numerous blogs + recognition in the New York Times.
(also ~90k pageviews)
It's in compliance with Zillow's TOS & they've threatened to cut of API access if I do not comply with their wishes.
History
Last year in May I created an iPhone interface for Zillow's "zestimator" - it was all fun and games, got a little bit of blog coverage/mentions & an overall good response. Zillow seemed to be all for it.
Then the New York Times included it in one of it's articles - and Zillow asked me to very simply put the words "unofficial version" and a link at the bottom of the app.
No problem. Done.
Now
Zillow has launched their own iPhone app (which rocks) - but wants me to take down mine and hand over the domain for "a couple hundred bucks".
I dont feel this is fair and they're trying to stiff me with a measely $250. What would you do? What do you suggest? What are your thoughts?
I can't help but think there's something you aren't telling us, otherwise they've made a colossal error.
Let's look at your absolute worst case scenario. They cut off your API, put you completely out business, and end your app. Let's look at what they are offering you: $250. The worst case scenario + $250. What, exactly, do you have to lose, by rejecting their offer? $250. Put another way: nothing. Absolutely, nothing.
What is their worst case scenario? That you, oh I don't know, post around to bunch of places like Hacker News that they basically strong-armed you mafia style to shut down. Word spreads through dev circles that they are basically screwing their devs and abusing the trust of the dev community. They have to do all kinds of PR damage control.
The entire point of an open API is to attract devs to help spread your brand. If they want to turn around and start screwing the very people who help them, they'll find that dev pool dry very, very quickly.
In other words, the position they've put you in, you have virtually nothing to lose, and they have quite a bit. I'd respond accordingly. Save all their emails. Start working on the "zillow.com screws devs" website. Name your price, and tell them for both your sake, they should accept.