When investing in Domain Names makes millions
Written by StartupBackpack
Friday, July 27th, 2007
Topic: Businesses, Domain Names
Domain names are like real estate, when that property is gone, its gone until someone chooses to put it back on to the market.
Over time real estate prices increase, such is the case in the premium domain name market place. It has become evident now more than ever that domain names are the place to be for virtual investments that can really turn a profit when the name is right. Business.com owners, Jake Winebaum and Sky Dayton, hit that make exactly when they originally purchased it for $7.5 million back in 1999. Did people think they were crazy? Oh yes. They have now proved that that original domain name purchase was well worth their piddly few million dollar investment.
Business.com was sold for $345 million this past week. Not only were the new owners paying for the premium domain name, they were paying for genuine type in traffic, and a directory of businesses that were put together over the eight years that its owners worked on it.
The Business.com domain currently pulls in $15 million per year.
The new owner is R.H. Donnelley, a yellow pages and local search firm.
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