Domain Name Madness has taken over the world of domain name sales.
Don’t believe me? Than tell me why a company recently paid three million, three hundred thousand dollars for the dotcom name “hippo.com”.
Is “hippo.com” worth 3.3 million?
I mean, it’s a cute name, but is it that cute? And, not only did they pay that extreme amount of money for the name, they had a fully functional website the next day. These folks were not messing around.
Now, there is. of course, only one good reason to pay 3.3 million for a domain name, and it is that the company expects to earn huge returns on their traffic. I took a quick look at the site and it appears to be a lead generating site for insurance businesses.
In my days as a mortgage broker, I often paid much more than I wanted to, just to get qualified leads for my team to work on. Prices have gone up a great deal since then, (ten years ago), but still very expensive.
Now, it starts to make more sense. Insurance business leads are among the most expensive on the internet. So, maybe the domain name madness isn’t so mad after all.
But still, it was a huge gamble. However, I love success stories and I sincerely wish them massive success. Now, I realize they’re not too concerned about my good wishes, but that doesn’t stop me.
How about you?
Maybe you don’t want to pay 3.3 million for a domain name, but it sure makes sense to analyze the projected income that a new name could bring you. This is especially true if you have a descriptive domain name that takes your viewer by the hand and leads them to your website. After all, it’s always about the traffic. Good traffic.
I’m just sayin’
