Our emphasis across the last few weeks has focused on domain name investing. While we’ve presented readers a picture of the considerations and attributes that often help domainers succeed, it’s also been necessary to point out that striking it big is no certainty. However, what happens when a domainer does execute an incredible investment? To help us understand, let’s have a look at some of the highest selling Australian domain names.
As one can identify from the list above, some of the nation’s highest selling domains haven’t necessarily been short names. None of the nine names listed are two or three-letter domains. The shortest (two) are four-letter names. In fact, two of the domains are longer than ten letters. This shouldn’t come as a surprise however, as many domainers often consider generic names and tangible keywords to provide value through their memorable nature and significant search engine volume.
Take investmentproperty.com.au, which would have been registered for as little as $20 once upon a time. However, in 2011, its then owner did not renew the domain’s registration. What followed was a bidding war between two businesses whom clearly identified value in the domain. Eventually, Mad Cat Pty Ltd (on behalf of Vision Homes) picked up the domain through our auction for the staggering sum of $125,000 (plus commission).
In the process, the name became the highest selling Australian domain at the time. While all the spoils went to the new owner, what became apparent was that the previous owner had let an opportunity slip. While there is no certainty the domain owner would have been able to sell the domain for the same amount, they could have well made a life-changing profit.
And then there is the story of Hobart.com.au. In 2005, the domain was acquired for the modest sum of $875. Sure, accounting for inflation and general appreciation in its value, one might have expected the domain to sell for a higher sum later down the track. However, when it was sold in 2012 to a web hosting business for $65,000, an unimaginable profit had just been realised.
Further abroad, and similar success stories have gone down in folklore. In 1997, business.com was snapped up for $150,000. Not to be deterred by the significant cost, the owner was able to sell the domain for $7.5m some two years later – that’s a pretty healthy return on investment if you ask me!
Domain name investing doesn’t guarantee the same degree of success as outlined above – and as always, one should seek advice from a registered professional with regards to their own circumstances. However, through passive income generation, and turning over affordable domains on a regular basis, some domainers have been able to generate healthy profits. If you do strike it lucky and find the next equivalent of cars.com.au or flowers.com.au, make sure you don’t let it expire!
That’s it for this occasion, stay tuned for our next educational article. If you have any questions, don’t hesitate to contact us.
The Netfleet Team
This information on this website is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product.
Another exciting development has finally been rolled out for Netfleet, and we can now fully manage your domain name portfolios. We have long been a reseller of domain names, providing drop/catc