Due to outrageous prices being fetched by 1 word domain names, a new market has emerged surrounding 2 and 3 word .com extensions.
June 9, 2008; 03:32 AM
June 9, 2008 (FPRC) -- In April 2008, pizza.com sold for 2.6 million,
not to be outdone by fund.com fetching a record $10 million in May by
broker Clek Media. Due to record prices being fetched for 1 word domain
names, a new market is emerging for multiple word extensions.
Industry giants ArrowBranding.com & HugeDomains.com are seeing
record sales for their 2 and 3 word domains. Analysts believe that most
decent 2 word domains will be gobbled up by the end of the decade.
Clek believes that the nearly $10 million purchase price for FUND.COM
represents the highest price ever paid for an Internet domain. The
purchase price tops what the Guinness World Records books report as the
highest previous price, the memorable BUSINESS.COM purchase. Ex-Disney
executive, Jake Winebaum of eCompanies Ventures, acquired BUSINESS.COM
for $7.5 million in 1999, which created some public media controversy
at that time for the seemingly high price. However, in July 2007
BUSINESS.COM was sold to yellow pages publisher, RH Donnelly, for $345
million, 47 times the purchase price of the domain.
Business and Wall Street investors continue to assign higher values to
internet domains. According to MSNBC, the domain CREDITCARDS.COM was
acquired for $2.75 million all-cash and SEC filings reveal that the $20
billion hedge fund, American Capital Strategies, and Austin Ventures
invested $135 million in CREDITCARDS.COM. Regarding the CREDITCARDS.COM
sale, MSNBC quoted ClickSuccess CEO Dan Smith, “It’s like prime real
estate, there’s only so much of this real estate to go around. I feel
like we bought a slice of Park Avenue.”
Have a 2 or 3 word domain you've been holding onto? Now may be the time to cash in.