I Paid $500,000 For A Domain Name
Yes, you read it right.
In 2012, I was working for an Asian multi-national. The Internet Corporation for Assigned Names and Numbers (ICANN), was issuing new generic top-level domain (gTLD) names for public bidding.
Anyone can buy:
Or any of the
<NAME>.net / <NAME>.org / <NAME>.co.uk
But you can not buy a gTLD. Now, ICANN says you can bid for it in a window of opportunity.
So, what are you bidding for?
so, companies were all bidding for
Name.NIKON / Name.<COMPANY>
and domain registrars we're bidding for
Name.HOTEL / Name.CLUB / Name.CASINO
And many more...
You get the idea. It was a land rush for new domain name business for the future.
That is why today, you can register domain name under all kinds of gTLD.
Yes, the cost for the entire process to own 1 gTLD, which I successfully bidded for the company I was working for at that time came up to $500,000.
To these companies, they are investing in their brand and using the domain name to strengthen their brand value.
Instead of Nikon.com or Nikon.camera
You have endless possibilities for your brand...
Camera.Nikon / iam.Nikon / nyc.Nikon / photo.Nikon
Now, you may ask...
What does this have to do with me?
I am one person...
Paul Graham, one of Silicon Valley’s most notable Venture Capitalists and co-founder of Y Combinator, have this to say about domain names.
“Unless you’re so big that your reputation precedes you, a marginal domain suggests you’re a marginal company”
You have a name.
You business have a name.
You have a niche business name.
Therefore, you can also build value in your name over the longer term. It may be an asset you can sell in the future.
Domain names registered early with functioning websites with traffic have a resale market.
Something for your consideration.
Of course, due to first mover advantage, popularity and most domain names registered, the ".com" domains have a higher perceived value and demand in the market.
Who knows, your $13 domain name registered here at WA may be worth $500 or $1,000.