23 Dec 2013
Owning a domain name is much like owning a house. Just as a home defines a person’s territory and identity, a domain name does the same. A domain name is the identification of a business or individual on the Internet. With more and more individuals turning to the Internet nowadays for information and purchasing decisions, landing the right domain name has become a top priority for most businesses. Considering these factors, it is no wonder why some individuals and corporations are willing to pay in the millions for a domain name that not only will guarantee them online recognition, but that will also guarantee them an extremely high profit return as well.
With the end of the year right around the corner, numbers are being released showing some of the biggest domain sales of 2013. While some sales were shocking, there were some that were predictable. Ranging in prices from the millions to just a couple thousand, 2013 so far has proven to be a very interesting year for sales. Listed below are some of the top sales in 2013.
The biggest sale this year was IG.com. This name sold in September for $4.7 million. The previous owner of the website was IG, who is currently Brazil’s third largest search engine provider. The company changed their name to Ig.Com.Br earlier in the year. While they had plans to revitalize their original website, they agreed to sell it due to the large demand and price tag associated with it.
So who actually purchased this high priced name? The two folks behind the deal were Marus Kocak, owner of a Danish domain acquisitions company called NetNames; and Tessa Holcomb, CEO and co-founder of igloo.com. They partnered up to purchase it on behalf of IG Group, a British based financial trading company.
The second biggest sale of the year so far has been KK.com, which sold for $2.4 million in November. As with any name, the identification of who owns it can be made private, and this was the case for many years with KK.com. All that was known prior to its recent sale was that it was being hosted by a registration company called Moniker. Moniker partnered with another registration company called SnapNames to acquire the name. What the two companies plan to do with the website is not yet known.
As bizarre as it sounds, the third biggest sale of the year was back in July with 114.com selling for $2.1 million. Just like with KK.com, the original owners of it had set up the website through private registration, so the reasons why they were selling it were difficult to discern. According to DN Journal, a leading news magazine that has been tracking website sales for the past ten years, the sale of 114.com is the highest sale ever for a numeric domain.
It may sound strange to most to hear that this sold for as high as it did; however, when one hears who bought it it’ll make more sense. A Chinese company bought it through a New York based representative. In China, the numbers 114 can be called to obtain information similar to the way Americans can dial 411 for information.
The last name to be sold this year in the million dollar range is eBet.com, which sold for $1,350,000. One interesting tidbit about this sale is the fact the previous owner, Rick Schwartz, obtained five appraisals on the price of it prior to selling. Out the five appraisals, only two of them gave the name value above the $100,000 range, with doemainIndex.com appraising it as low as $55. In the end, though, Mr. Schwartz made out by selling it for what he felt it was worth.
Little is known about who bought eBet.com. Mr. Schwartz said he sold it to a Filipino owner. A who.is search reveals that the website is now registered to a Rachel Rueda from the Makati City Manila. eBet.com was formally a betting/gaming website. What the new owner plans to do with the website is unknown at this time; however, some have suggested that Ms. Rueda may have bought the name due to her association with either eBet limited, a gaming slots machine vendor in the Asian gaming market; or eBet USA, a sports betting site.
For those looking to make a great profit by selling their popular names, this year has turned out to be golden for them. With over fifty sales this year topping the $100,000 or more mark, it is certain that owning prime domain names is still on top of most to-do lists. Just like owning prime real estate, owning certain domains is a necessity for many. One must wonder what 2014 will have in store when it comes to domain sales. If 2013 turned out this good, maybe we’ll see more top the $1 million mark next year.