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A reliable source indicated that the amount of cash that changed hands "on the sale" of business.com was $400,000.
Domain sellers and buyers recognize the value of media buzz on a sale so a credible big sales price can generate millions of dollars of free advertising for the future site.
I suspect the media is getting savvy - asking "how much was actually paid to date"?
I know of one .co.uk domain that recently sold for the equivalent of over $500,000.
Many sellers/purchasers demand strict confidentiality clauses in domain name sale contracts.
Names such as shopping.com, books.com, casino.com etc. would get much more type-in traffic and would be worth more money in my opinion.
When is a company purchased for their domain and when is the company purchased for it's business/users/traffic?
Should all the major portal deals be included to the list of domain name prices?
I would compare the casino.com deal to other major portal deals. Yahoo purchasing broadcast.com, egroups, Geocities.com and Terra purchasing lycos.com.
Here are all the domain names sold for over $1 million that I can find.
Note the list is three times as long if you include all above $100,000
business.com - $7.5 million (1999)
casino.com - $5.5 million (Oct 2003)
Korea.com - $5 million
asseenontv.com - $5 million
altavista.com - $3.25 million
Loans.com - $3 million
Wine.com - $3 million
Wines.com - $2.9 million
Tom.com - $2.5 million
Autos.com - $2.2 million
coupons.com - $2.2 million (needs verification)
Express.com - $2 million
Mortgage.com - $1.8 million
fly.com - $1.5 million (needs verification)
marketingtoday.com - $1.5 million (needs verification)
men.com - $1.32 million (Dec 2003, not completed until May 2004)
Feedback.com - $1.23 million
Phone.com - $1.2 million
Find.com - $1.2 million
Bingo.com - $1.1 million
SurfWorld.com - $1 million
wallstreet.com - $1.03 million
If.com - $1 million
Rock.com - $1 million
Sky.com - $1 million
Beauty.cc - $1 million
eflowers.com - $1 million (needs verification)
whitehousecrisis.com - $1 million (needs verification)
newzealand.com - $1 million
Cyberworks.com & .net - $1 million
Most domain sales in the six or seven digit range are never pure cash, they often include stocks and such,
"valued at" a certain price, often inflated for advertising purposes.
Beauty.cc was $200k in cash + stocks [laweekly.com]
Remember when you are looking at sales this high, this is the lottery of prices.
99% of sales are nowhere near that high. Ebay has 3000 domains listed every two weeks,
only about 20-30 of them sell, and then for $200 to $5000 tops. (I track this information, stickymail me for lists)
I believe the highest public pure cash sale was for NewZealand.com for half a million US dollars to the NZ government, which really upset the tax payers. (my listing of Newzealand.com up there was a mistake, thats $1 million in NZ dollars, I can't edit it anymore)
I bought this one a couple of years back and could not believe that it was available. I have had some offers for around $5,000. but I think it is worth more than that. What do you guys think!
Sorry, it was incredibly fake. The sale was part of a larger marketing agreement for which both sides received money. The stocks that exchanged hands were worthless, and their only value was in the hope that they could be pumped up, which was the reason for the huge press release.
The article you linked to got most of the way there, but didn't explore the depths of just how rotten the deal was.
Other sales in which stock changes hands have been much better about having a more realistic valuation (though, sure, many of them pump it up some) and did not include restrictive marketing agreements requiring certain purchases to guarantee the deal.
In a very real sense, it'd be like the two major stockholders of a corner grocery store agreeing to sell one share of stock for $1 million and hand over half a million new stocks for free in the hopes that someone out there was stupid enough to believe that the $2 stocks were worth a million each.