“The market is so bad, the rates are so high” is what you hear on the news. Investors are looking all over to find property that can yield a great return, In comes domain real estate. There are plenty of folks who owned personal sites for 7 to 10 years that have sold them for close to 10 million dollars. Recently I stumbled upon this site Tooth.net and I said to myself wow what an awful looking site, but looks can be deceiving. Turns out this site is being sold for 15k to an internet investor. The owner had this site created in 1998, the cost for this site ( the down payment ) was $200 dollars and the hosting ( mortgage ) was $20 per year. The investor is no fool, he knows that this site has a premium 1 word domain ( prime location in the wealthy part of town ) and with some programming this can become a dental directory where he can get millions of users to visit and later sell the website to Colgate or Crest for 500k to 1million. So I take my investigation even further and I find out there is actual domain mortgage companies that will lend you money to buy a premium domain.

How much do you think color.com is? Well is for sale for 50k on sedo. I can’t afford it but if I could I would buy it today.

UPDATE:
Dan Bornstein the owner of Milk.com has this to say about folks that want to buy his domain:

“People occasionally email me about buying the domain milk.com from me. I used to respond to such requests with, “How much are you offering?” These days, if you don’t mention a number, I probably won’t mail you back. However, let me warn you that I like the name and I have a reasonably well-paying job, so it’ll have to be a pretty damn good offer. Note that a number (in whole U.S. dollars) which includes fewer than 7 significant digits to the left of the decimal point does not constitute “pretty damn good” in my book, and in order to really get my attention, consider offering 8. For the mathematically-disinclined, this means that I think $1 million is lowball, and $10 million will almost certainly make me cave. The GreatDomains valuation model seems to agree with me on this. (As of February 2001, the estimate based on their publicly-available valuation chart would have the domain be worth something in the range of $500 thousand to $10 million.)”

Hi did his research on how much the industry is spending to promote milk products and set his price.

Tags: Domains

This entry was posted on Saturday, July 19th, 2008 at 4:05 pm and is filed under Domains. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.