PALM BEACH – A company which many ordinary people (non-industry) have probably never heard of called “MicroStrategy Incorporated” has announced it has sold an Internet web address, Voice.com for $30,000,000.00 in cash. As you can see, that’s a lot of zero’s in that number and represents what many who invest and trade in Internet domain names likely find so exhilarating about it.
For those who are not that savvy when it comes to Internet domain names, this a “website address” “www” whatever, that ends in the original “.com” extension, and which was more than likely originally registered for under $35.00. Along with that registration fee, comes a yearly renewal fee requirement almost always equal to its registration cost.
The fact that someone, anyone on the planet, with foresight to snap up a catchy domain name when it is available for registration, and turn it over for that sort of multiple, even if it were 50 years later, is extraordinary and represents one of the greatest financial investments of all time.
According to the Internet Archive “WayBack Machine”, a site which keeps website snapshots over time, the web address existed at least since the year 2000 with domain industry blogging site OnlineDomain.com, noting it being sold to MicroStrategy in 2005.
Although the name changed hands at that time (in 2005) for what was likely a significant purchase price, this did not necessarily need to be the case to represent what a clever domain name and good timing could represent for the original purchaser.
This transaction represents what was likely originally purchased for ‘in the area’ of $35 (.com domains where slightly more expensive than their average of $12 today) could have been held for 20 years at that cost, equaling a total expense in the area of $700 – turning into $30 million. I’m just not sure where else you can find that type of return.
Anyone interested in buying a domain name?
About The Author: John Colascione is Chief Executive of Internet Marketing Services Inc. He specializes in Website Monetization, authored a ‘how to’ book called ‘‘Mastering Your Website’, and is a key player in several Internet related businesses through his search engine strategy brand Searchen Networks®
Define cash. Is crypto considered cash? If so, it’s a deal in a new bitcoin and the initial valuation of it is entrenched in this sale. Very clever marketing strategy. If it’s in real cash (USD) that’s a great indicator of future single-word generic domain pricing.
seller bought it on the secondary market in 1997, ~$50K
That’s a lot of money for 1997.