I want to share a story about why we spent a million and a half dollars buying the domain Sumo.com.
Sumo.com. The Domain We Just Had to Have
I used to be so against buying expensive domain names. When I was at the Facebook they spent $200,000 to buy Facebook.com
So what changed for me?
- There was a lot of company clones, a bunch of people working, adding Sumo to their name. Sumo this, Sumo that, Sumo whatever, and it was just tiring. I thought what if we could be the definitive Sumo?
- People couldn’t pronounce our name correctly. So Jason Calacanis kept saying; like South Park character. What’s your guys site? And he just couldn’t pronounce it, it drove me crazy.
- And then we wanted to go big. We did want to go big. We do want to go big. We wanna go Sumo big.
Life is precious. It takes literally the same amount of effort to do something big, as it takes to do something small. So why not just go for something big?
That’s actually something Peter Thiel told me, back in Facebook.
To get the actual domain, it’s taken seven years. I sent over 200 emails to finally get the domain.
And this is a lesson I learned for my mom, who’s got a PhD in nagging. My mom always said; “the squeaky wheel gets the
Grease” and that is one of my favorite quotes; “The squeaky wheel gets the grease”
So you got a paper system in the things you really want, so how did I find the contact information of the owners? I used a whois lookup.
“Hey what’s up Guys? I talked with our team and we’re prepared to offer $50,000 cash for the domain. And we can escrow out within 24 hours. Does that sound good?”
And Amit responded: “I guess I was not able to communicate clearly. We did not buy the domain with the intention of selling it for money. Have a most blessed day.
Then we sent it again. And we said we’ll give you a $175,000 now. “Not interested. Have a great day”
Get The Domain You want. There’s ALWAYS a Price
But obviously we own the domain name now. So the lesson really there is, that for something you want, or in general, there’s always a price.
So how did it finally work? We offered him a million and a half bucks. Five hundred thousand dollars up front, and the one million dollar difference, over five years, paid monthly.
You know the last email and it came back and they said: “I spoke to management. We are okay with your proposal. Send the documents over for our review.”
And that was it. We finally got the domain we really wanted, seven years later.
We found out we were the 82nd most expensive domain name ever, right next to our comrades Russia.com.
If you’re ever trying to make a large purchase, there’s two questions that I’ve been able to come up with that have really, really, really helped me.
- How would you feel if someone else got what you wanted? And I knew I’d be pissed.
- Did I really, really want it, and or is it a steal of a deal?
- Do you have that burning desire?
- Do you have fantasies about it?
- Do you have an excitement?
I think you should have a feeling. And if you don’t really want the domain, is it just such a good deal that you have to buy it_nq.
Heaven forbid I would suggest this is not a “Powerful” domain name.
- It is one single, commonly accepted English word.
- It is only 4 letter long. Practically impossible to find in today’s domain name markets
- It has a .com extension. The world’s undisputed most-prized.
- It has a healthy 135,000 Google searches per month.
- It has super positive mind images associated with
- Easy to recall
- Easy to say
- Really brandable
- Really flexible
…highly acclaimed valuer:
Assesses the domain name at only $610,000 USD.
Did Sumo.com overpay nearly 2.46 times it’s assessed value for the privilege of being undeniably unique? Is $890,000 the price of chronic obsession?
Or are they some multi-billion asset where $1,000,00 to them is like a speeding fine to you or me? I have not all the facts.
Would I have advised differently had they approached me those 7 years ago? I believe I would.
I intend to mull over this over the next whatevers, and come back and re-address this topic in this article. At this point of time I feel their burning desire blinded them to all and every alternate possibility available.
We shall see.
First of all let me know if you are planning to buy a domain name from any hosting sites and how much is it costing you.
Did you know that there are some domain names which were sold at a high price, like in tens of millions, and today I will list you top 10
which were sold at a very, very high price.
So let’s get started..
mi.com Xiaomi, a chinese mobiles and other device maker purchased mi.com for about $3,600,000 in the year 2014. After it purchased the domain this name became Xiaomi’s primary website. mi just had two letter word m and i and this cost them the amount of 3.6 million.
4 years later, Estibot values the domain at $5,630,000 today, it has 137,500 searches and a CPC of only $1.42. As of April 2018 the site is not yet device responsive. Perhaps they cannot afford the $20 theme upgrade.
casino.com. It was a private type of deal with an anonymous buyer paying $5,500,000 for this gaming portal domain name casinos.com in the year 2003. However the previous owner and also the seller of this domain was swedish interactive abe AKA Bossmedia. casino.com is working as a gaming portal for real cash casino and hosts several online games.
15 years later, Estibot values the domain at $20,030,000 today, it has 2,287,500 searches and a CPC of only $2.61 (A raging bargain for you guys on the gaming floor)
iCloud.com iCloud is one of the best cloud storage sites from Apple Inc. but did you know that this domain name was got at around $6,000,000 on March 2011 Apple company acquires domain name from a Swedish based brand Xcerion even before icloud.com domain was first used by Apple’s it used the same service for cloud storage which is provided by Xcerion.
7 years later, Estibot values the domain at $254,000 today, it has 5,112,500 searches and a CPC of only $0.36 (And I really thought Steve was a savvy businessman. Oh well, it’s not much really divided between millions of shareholders)
diamond.com This domain was first used by odimo.inc which was acquired by ice.com in the year 2006 at the amount of $7,500,000 This domain is now live and an online diamond shopping site. Currently, as of 28 April 2018 the site is down. (Really unprofessional diamond.com)
12 years later, Estibot values the domain at $7,000,000 today, it has 368,000 searches and a CPC of $3.60
FB.com Try typing FB.com in a URL box and see where it redirects you. It redirects you to the Facebook homepage. Try it right now.
So, in the month of November 2010, Mark acquired this domain by paying about $8,500,000 which is 42 times more than the amount paid for the original domain name ($202,400) aka facebook.com it was first used by Nebraska Farm Bureau as a primary domain.
8 years later, Estibot values the domain at $3,313,000 today, it has 277,000,000 searches and a CPC of $12.44 (You were massively ripped off Mark, or don’t you care? Did it warrant at least one long stiff shot of brandy?)
Delta.com mr. David root who is the president of this website hotels.com said in a BBC News interview that the domain name Versailles thought swarm was brought at the price of llion dollars in the year 2ill now this website ranked almost 5 the Alexa traffic rank and even it has a service available in 37 different countries it means that giving llion dollars for this domain was a win-win situation for them
okay the first we have 36m a beijing-based hardware software web browsing company queen who 36uired 36m in the Year 23:42 they paid around llion dollars to get this domain name at its primary word however the first owner and a seller of this domain name is the another great famous company Vodafone third on the list we have internet comm host familiar world around the blue knowing that someone has this domain name the traffic was automatically drive to them domain internet comm was sold at llion dollars by web media brands the Queen Street in the year 2urrently this domain works as a News editorial and infographic providers related to Internet topics
second on the list we have private jet comm this domain was acquired by Nations lugs transport limited for the amount of thirty.one 8 million dollars from Jones local media dot-com as domain name suggests this website now works as a quick private jet provider
so topping the list we have insurance.com this domain was bought in the year 2y Queen Street company at the price of 35.6 million dollars beside this Queen Street has even bought many other domain names such as Cod ratings competence on 4 million dollars in short or compost excuse million dollars and many more. So this is the domain that is No1. _nq