Domain name in an abstract concept. This makes it difficult for people to attach value to them. Hence, in this post I would try to give you examples wherein you can connect things to domains and understand their value.
Let’s start with an example of “Shoes”. It’s a very common generic term (everyone wears shoes ! ). Going by the stats, Global Footwear Market was worth $215.7 Billion USD in the year 2016.
Now imagine a person who types “Shoes.com” in the browser . He/she is most probably a qualified lead, to buy a pair of shoes. This is similar to have your retail store at a place where customers are most likely to visit. Therefore the price of Shoes.com has to be enormous.
Shoes.com is a running website from 1996. It has changed hands a couple of times but always been selling shoes. Shoes.com, with all customers was acquired in 2014 by ShoeMe.ca . At the time of purchase , Shoes.com was doing a business of $60million annually.
After the acquisition, higher authorities at ShoeMe.ca became over ambitious and tried to do too many things at the same time. This resulted in degradation of their customer support & services leading to huge losses. The company finally had to shut down it’s operation.
The asset Shoes.com was then acquired by Walmart Owner ShoeBuy.com for $9 million USD. The earlier business failure had no effect on value of the Shoes.com and hence its safe to say that it fetched a good price.
Similarly, there are domains like Tshirts.com , Jeans.com, Books.com , Batteries.com , Mobile.com, and a lot more, which are the assets that can dictate a company’s presence over the business vertical.
That’s about it for this article. Share your experiences of interesting domains, that you think must be valuable. Let’s test the creativity of the readers 🙂