Premium Domain

How Valuable is a Premium Domain Name?

Does that premium .com domain really warrant a 6, 7, or even 8 figure asking price?!

Modern day branding continues to evolve, but the fundamentals remain the same. Stand out from the crowd.  A premium .com domain can truly change the scope of a business. Creating a power brand is not an easy task by any means, but if you look at some of today’s biggest businesses, they all own premium .com domains related to their industry or brand.

Here are just SOME examples:

  • Microsoft – (Surface.com, Start.com, Office.com, Live.com, Juice.com, Investor.com, GPS.com, Docs.com, CashBack.com)
  • Salesforce – (Chatter.com, Data.com, Database.com, Desk.com, Force.com, Site.com, Social.com, Work.com) – DO.com was previously owned by both Microsoft and Salesforce.
  • Oracle – (Agile.com, Distinction.com, Learn.com, Network.com, Retail.com, Sales.com, ServiceProvider.com, Think.com)
  • Costar – (Land.com, Apartments.com, Apartment.com)
  • AT&T – (FastAccess.com, Mobile.com, WebHosting.com)
  • Bank of America – (Loan.com)
  • Amazon – (Clothing.com, Endless.com, Triangulate.com) I also have reason to believe that they offered in excess of 10 million USD for Jeans.com.
  • American Express – (Open.com, Serve.com)
  • Apple – (Airport.com, Apple.com, Carbon.com, Newton.com, Next.com)
  • AOL – (Advertising.com, Flipper.com, Games.com, Love.com, Seed.com, When.com)
  • Avis – (AutoRental.com, RentACar.com)
  • Barnes & Noble – (Book.com, Books.com)
  • Bass Pro Shops – (Archery.com, Ducks.com, Hunting.com, Tackle.com)
  • CBS – (Kids.com, Auctions.com, Browser.com, Builder.com, Buying.com, Chat.com, Com.com, Community.com, Computers.com, Download.com, Downloads.com, Freeware.com, Gaming.com, Help.com, Labs.com, Marketplace.com, Mp3.com, News.com, Online.com, Radio.com, Search.com, Shopper.com, Silicon.com, Store.com, TV.com, Updates.com, Upload.com, Welcome.com)
  • CitiBank – (Finance.com, Mortgage.com, StudentLoan.com)
  • Condé Nast – (Allure.com, Brides.com, Concierge.com, Details.com, Flip.com, Glamour.com, Gourmet.com, GQ.com, NewYorker.com, Style.com, Wired.com)
  • Dick’s – (Runners.com, SportGear.com, SporsGear.com)
  • Disney – (Dig.com, Family.com, Go.com, Kid.com, Video.com)
  • Enterprise – (RentalCar.com)
  • Expedia – (CarRentals.com)
  • Fidelity – (401K.com, 529Plan.com, 529Plans.com, Funds.com, Retire.com)
  • General Electric Company – (AutoLeasing.com, CarLeasing.com, Coincidence.com, Oxygen.com, TransportationServices.com)
  • UHAUL – (Trailer.com)

 

There are many more examples of premium domains that are owned by dominant brands. Many people simply don’t realize that most of these will NEVER be for sale. Premium domains are becoming more scarce every day.

So just how much value do these large company’s place on a premium domain?

Since the acquisition of Cars.com in 2014, TEGNA (the parent company) has reported in an SEC filing that Cars.com (just the domain name) was valued at over $872 million USD during the acquisition. To be clear, this is just the domain name and not the business that accompanies Cars.com. Total acquisition cost was roughly 1.8 billion.

In a more clear cut case, Voice.com was recently sold for $30 million USD in cash. This domain had no website and no business attached to the sale. It was literally just a domain name.

The power of domain names relate to your brand in several different ways.  A recent example was RING.com . Ring was a struggling startup before re-branding to Ring and acquiring Ring.com for over a million dollars. A few years later, they sold to Amazon for $1 Billion USD, and the owner specifically mentions the importance of acquiring Ring.com. Check out some more compelling reasons for why a domain is so crucial here

Summary

If you’re involved in a growing business that wants to join these elite companies, then you MUST invest in your brand. It will only get more difficult to compete with today’s powerhouse brands. If you can acquire your industry defining domain or your exact match brand name for 6 or 7 figures then consider yourself lucky! You could blink twice and find out it’s no longer for sale and never will be. If this happens, you’ll always be facing the sound of a rebrand!

 

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