Originally posted by mole
Anybody remember how much Pets.com sold to PetsMart?
Here's the link, from BusinessWeek:
Here's the quote from the article:
"The price tags on these domain names might look high, but to many of the buyers, they're bargains. Petsmart bought the name Pets.com and 59 other pet-related addresses from the e-tailer for $375,000. "We looked at the traffic and what percentage we could convert to customers based on our experience, and then we determined what we were willing to pay to convert them," says Thomas P. McGovern Jr., who runs Petsmart's site. For Petsmart, with $2 billion in revenues a year, he jokes, "$375,000 is a small rounding error in our budget."
I think generics are far from dead, simply because of the value they bring both through type-in traffic and through branding power (brandspace authority, association and memorability).
And for large companies, mid & high six figures, and even low seven figures, isn't an impossibly large amount of money to pay for a top domain.
Domain names are ultimately a marketing tool, and so they must be evaluated in the context of marketing. Remember that one full-page ad in a major newspaper can cost $40K+...a television ad campaign in prime time can cost hundreds of thousands. The marketing campaigns of Fortune 500 companies that deal in publicly-comsumed products and services run to 9 figures.
The right domain name for the right product and company is still worth serious money, IMO.