Suppose a business is using a domain with dashes in it, while you own (for a longer period of time) the same name but without the dashes. Even better, the domain with dashes is also used in a print magazine published by the same business. So naturally, as a result, your domain receives a lot of traffic from the one with dashes.
You would imagine that this particular business has checked out your domain before they registered theirs about 2 years later. For one reason or another, likely financial, they opted to register the one with dashes. That’s why I question whether approaching them is the best option.
So would you contact that business with your far superior domain, or develop it because it is receiving a lot direct traffic? The only negative about approaching them that I can think of is that it may prompt them to use a different domain and the traffic flow may eventually fizzle out. Also, if you don’t have the resources to develop, your best option probably would be to reach out to them.
The benefits of developing is that if you can build a business on the domain, you can create a regular steady revenue stream rather than a one-time sale. However, developing takes effort and time, whereas a sale is quick and you see the profit much sooner. Another option is redirecting the domain to a developed site that serves the same audience.
What are your thoughts?