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Maziar Darvish dismissed concerns that the deal was anything but cheap. (...) “I agree that in their own right, domain names are worthless.” (...) He said that the current sites already generate hundreds of thousands of pounds worth of advertising revenue
As I understand it, they bought existing websites, not just the domain names. If these are sites with good traffic, the price might not be that high.
once IBG replaces the current websites with its own, it expects usage and revenue to grow rapidly
A grand assumption don't you think? I hope they REALLY understand 301 mapping, dupe content and every consequence therein.
Good luck to them though :)
In any case, these sites have enough users such that this was a pretty fair valuation in my opinion. Not a bad deal.
What really bothers me is everytime someone pays big bucks for a domain I invision a bunch of people rushing out to register 100s of domains, just to park them and hope someone will pay for them without ever increasing the value of that domain by actually using it to provide content, not ads, but content to those of us arriving there.
I have no problems with nursing a domain to good standing and then selling it along with high rankings for certain keywords, but this whole buy it and park it annoys me.
Kind of like when someone buys up property all over your neighborhood and puts up billboard ads all over the place rather then making the properties nice and giving the nieghborhood a good reputation.
I don't konow if Bill actually said it, though I read it quoted by him. And if he did, that don't make it nessacaryily true ... but on the other hand, the pages below do show that big domain sales are trending upward.
Year-To-Date Top 60 Reported Domain Sales
View All Reported Domain Sales of $10,000 or more in 2005 here:
See Reported Domain Sales of $10,000 or more in 2004 here: