How Valuable Is A Premium Domain Name?

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

Over the last 5 years I’ve been fascinated by branding and how 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.

It won’t be long until all the premium domains are owned by globally dominant businesses. The only way you’ll be able to acquire a premium domain is with VERY deep pockets (8 figures +) or if a company goes bankrupt (Toys-R-Us). During the Toys-R-Us bankruptcy proceedings, you’ll see names like Toys.com go to auction.

 

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.

The power of domain names relate to your brand in several different ways.  A recent example is RING.com (click here). Ring was a struggling startup before re-branding to Ring and acquiring Ring.com for a million dollars. A few years later, after selling to Amazon for $1 Billion USD, 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’re in danger of becoming irrelevant.

Go to BrandConsultants.com or connect with me on LinkedIn for consultations.

 

4 Comments

  1. Absolutely spot on Josh. If startups or businesses have the budget to acquire their .com, they really must do it.

Leave a Reply

Your email address will not be published.


*