40z.com - making sense of internet branding

Top Tier Domain Sales History

Below is a list of top tier domain sales as published in press releases, SEC filings, or news organizations or as reported by domain brokers. Sales include cash, and in some cases, stock transactions. 

 (Information from publically published resources, data assumed to be reliable but not guaranteed. List of domain sales not comprehensive. Many domain transactions occur under terms of NDAs, and terms of such sales are not disclosed. Any updates to information below please post in comment section) 

Insure.com $16,000,000 10/10/2009

Sex.com $14,000,000 1/19/2005

IRS.com $12,909,369 9/29/2005

Fund.com $9,999,950 3/11/2008

Porn.com $9,500,000 5/29/2007

Diamond.com $7,500,000 5/19/2006

Business.com $7,500,000 1/1/1999

Beer.com $7,000,000 1/1/1999

CCS.com $5,800,000 3/20/2009

Casino.com $5,500,000 1/1/2003

AsSeenOnTV.com $5,500,000 1/1/2000

Toys.com $5,100,000 2/27/2009

Korea.com $5,000,000 1/1/2000

SEO.com $5,000,000 6/1/2007

Clothes.com $4,900,000 05/01/2008

YP.com $3,850,000 11/5/2008

Shop.com $3,500,000 1/1/2001

Wines.com $3,300,000 9/1/1999

AltaVista.com $3,300,000 1/1/1999

Wine.com $3,300,000 1/1/2003

Software.com $3,200,000 1/1/2005

Candy.com $3,000,000 6/04/2009

CreditCheck.com $3,000,000 1/1/2007

Vodka.com $3,000,000 12/19/2006

Loans.com $3,000,000 1/28/2000

Shopping.de $2,800,000 9/09/2009

CreditCards.com $2,750,000 7/1/2004

Pizza.com $2,605,000 4/5/2008

Tom.com $2,500,000 2/1/2000

Autos.com $2,200,000 12/1/1999

Coupons.com $2,200,000 12/1/1999

Computer.com $2,100,000 11/27/2007

Mint.com $2,000,000 9/18/2009

Telephone.com $2,000,000 1/1/2000

Express.com $2,000,000 12/1/1999

Savings.com $1,900,000 3/1/2000

Seniors.com $1,800,000 7/3/2007

Mortgage.com $1,800,000 12/14/2000

Fly.com $1,760,000 2/3/2009

Cricket.com $1,750,000 9/29/2009

Auction.com $1,700,000 3/24/2009

DataRecovery.com $1,659,000 3/4/2008

Branson.com $1,600,000 6/1/2006

Ticket.com $1,525,000 10/09/2009

Dropshippers.com $1,500,000 8/25/2009

Russia.com $1,500,000 11/28/2009

Tandberg.com $1,500,000 2/13/2007

Cameras.com $1,500,000 11/7/2006

MarketingToday.com $1,500,000 9/1/2005

Deposit.com $1,500,000 3/1/2000

Ad.com $1,400,000 6/20/2009

VIP.com $1,400,000 12/1/2003

Men.com $1,320,000 12/1/2003

Vista.com $1,250,000 11/13/2007

Phone.com $1,200,000 1/1/2002

Scores.com $1,180,000 6/5/2007

Kredit.de $1,169,175 11/25/2008

Chinese.com $1,120,008 7/24/2007

Call.com $1,100,000 9/02/2009

Flying.com $1,100,000 4/07/2010

Bingo.com $1,100,000 1/1/2000

Cruises.co.uk $1,099,798 2/5/2008

Wallstreet.com $1,030,000 4/1/1999

Fish.com $1,020,000 11/15/2005

Invest.com $1,015,000 9/30/2008

Poker.org $1,000,000 2/18/2010

Vibrators.com $1,000,000 11/14/2008

Britain.com $1,000,000 0/0/2000

Rock.com $1,000,000 0/0/2000

Guy.com $1,000,000 11/27/2007

Topix.com $1,000,000 3/13/2007

eFlowers.com $1,000,000 2/1/2003

If.com $1,000,000 2/1/2003

Beauty.cc $1,000,000 1/1/1999

iphone.com $1,000,000 1/1/2007

Websites.com $975,000 0/0/1999

Bills.com $964,500 12/13/2005

Poker.de $957,937 7/17/2007

Investment.com $900,000 12/11/2007

Credit.fr $850,000 2/12/2010

Erotica.com $850,000 8/06/2009

SkiResorts.com $850,000 4/8/2008

ForSaleByOwner.com $835,000 1/1/2000

Guns.com $800,000 3/09/2010

Printer.com $800,000 8/26/2008

Earth.com $800,000 12/31/2005

Jobs.com $800,000 2/1/2003

Singapore.com $800,000 2/1/2003

Server.com $770,000 8/03/2009

Capital.com $750,000 0/0/1999

iReport.com $750,000 1/29/2008

Property.com $750,000 8/9/2005

Website.com $750,000 7/26/2005

NAV.no $717,978 5/12/2006

Refinance.com $706,850 11/8/2005

Cinema.com $700,000 0/0/1999

Melbourne.com $700,000 12/4/2007

Local.com $700,000 3/8/2005

Mercury.com $700,000 1/1/2004

Luck.com $675,000 10/09/2009

Dollars.com $650,000 7/10/2007

On.com $635,000 3/14/2006

Casino.de $625,060 3/18/2008

Biz.com $625,000 6/1/1999

Music.mobi $616,000 12/5/2007

Christian.com $600,000 9/09/2009

Jobs.ca $600,000 5/6/2008

Annuity.com $600,000 12/31/2005

VIP.com $600,000 9/27/2005

Job.at $590,949 12/26/2007

Affiliate.com $579,900 8/26/2008

Cardiology.com $550,000 8/7/2007

AntiSpyware.com $550,000 1/2/2007

Macau.com $550,000 2/7/2006

SheMale.com $520,000 3/13/2007

Brazil.com $500,000 8/10/2009

Talk.com $500,000 7/01/2009

Laon.com $500,249 1/4/2007

Act.com $500,000 0/0/2000

Image.com $500,000 0/0/2000

Rebate.com $500,000 10/30/2007

Rebates.com $500,000 10/30/2007

Invention.com $500,000 10/30/2007

AZ.com $500,000 10/30/2007

LI.com $500,000 8/21/2007

Greenhouse.com $500,000 7/3/2007

Gays.com $500,000 10/31/2006

Wrestling.com $500,000 8/15/2006

Bike.com $500,000 6/6/2006

Blue.com $500,000 3/28/2006

NewZealand.com $500,000 4/1/2000

ShoppingMall.com $500,000 3/1/2000

FinancialAid.com $480,000 12/23/2008

Chat.de $470,848 1/18/2005

Blackjack.com $460,000 2/1/2003

ME.com $460,000 3/1/2000

Sex.net $454,500 5/19/2006

Rio.com $450,000 10/28/2009

SportingGoods.com $450,000 11/20/2007

Templates.com $450,000 9/12/2006

Wap.com $436,000 12/1/2000

Games.mobi $405,100 12/5/2007

AreaRugs.com $405,000 9/29/2009

Resumes.com $400,000 10/28/2009

Body.com $400,000 3/18/2009

Tell.com $400,000 7/1/2008

Systematic.com $400,000 4/1/2008

Porn.net $400,000 2/12/2008

Bald.com $400,000 8/7/2007

CarSales.com $400,000 7/17/2007

Iran.com $400,000 6/12/2007

MyBlog.com $400,000 12/6/2005

WhatIsMyIP.com $386,100 7/26/2005

Dollars.com $381,150 2/17/2009

Contests.com $380,000 6/20/2009

DomainRegistration.com $376,480 7/15/2008

Jets.com $375,000 9/19/2009

LongIsland.com $370,000 4/06/2010

Cowboys.com $370,000 11/6/2007

LowFare.com $365,000 11/11/2008

Banners.com $360,000 11/11/2008

Gibraltar.com $360,000 8/28/2007

WirelessPhone.com $355,000 6/6/2006

Greeting.com $350,000 4/3/2007

FunGames.com $350,000 10/10/2006

Rugby.com $350,000 11/1/2004

Phones.co.uk $344,710 7/8/2008

770.com $343,208 4/15/2008

Best.com $331,561 11/07/2009

Hotels.eu $329,509 8/29/2006

RVRental.com $325,000 9/9/2008

Smoking.com $325,000 3/8/2004

Supplies.com $323,530 8/7/2007

FinancialAide.com $320,000 12/23/2008

Jasmin.com $310,250 2/28/2006

Recycle.co.uk $309,901 11/20/2007

173.com $302,790 2/12/2008

Pilot.com $300.000 4/06/2010

SC.com $300,000 12/9/2008

FreeCreditReport.co.uk $300,000 10/14/2008

iSearch.com $300,000 8/26/2008

DVDs.com $300,000 4/1/2008

Bookmarks.com $300,000 2/12/2008

Resume.com $300,000 7/24/2007

Text.com $300,000 7/3/2007

RealEstate.net $300,000 2/6/2007

Cafe.com $300,000 10/31/2006

Blackjack.de $300,000 6/20/2006

Brown.com $300,000 2/7/2006

Recycling.com $300,000 12/20/2005

Viajes.com $300,000 1/11/2007

BDSM.com $295,000 2/6/2007

Xmas.com $294,200 11/27/2007

ShoppingCart.com $285,000 8/9/2005

CD.com $277,750 7/11/2006

Floor.com $275,000 12/30/2008

UI.com $275,000 12/4/2007

A1.com $260,250 12/13/2005

TripleCreditReport.com $260,000 8/12/2008

Table.com $260,000 11/20/2007

Seks.nl ("sex" in Dutch) $258,000 12/9/2008

POS.com $252,500 5/23/2006

MusicVideos.com $250,000 3/21/2010

Payment.com $250,000 8/14/2009

Alice.com $250,000 11/11/2008

Locals.com $250,000 7/3/2007

Buckhead.com $250,000 3/27/2007

Malta.com $250,000 6/13/2006

Exercise.com $250,000 10/1/2004

Call.com $250,000 10/1/2004

Makeup.com $250,000 10/1/2004

Automobile.com $250,000 10/1/2004

Mobile.co.uk $247,921 11/20/2007

Mortage.com (typo) $242,400 4/4/2006

Ant.com $241,200 10/17/2006

Yearbook.com $237,500 2/6/2007

DiamondRings.com $228,420 7/25/2009

Action.com $230,000 7/29/2008

FlashGames.com $226,950 1/10/06

InsuranceRates.com $225,000 6/10/2008

AR.com $225,000 2/12/2008

ET.com $225,000 4/10/2007

WiFi.com $225,000 7/18/2006

Arab.com $225,000 8/15/2004

Spices.com $220,000 7/24/2007

Televisions.com $215,000 9/18/2007

CrosswordPuzzles.com $210,000 11/4/2007

Masculin.com $201,792 6/26/2007

SatellitePhone.com $201,600 7/25/2006

Nasty.com $200,000 4/05/2010

Perth.com $200,000 12/18/2007

DIY.net $200,000 11/13/2007

Settlement.com $200,000 4/24/2007

Flowers.mobi $200,000 11/28/2006

Nasty.com $200,000 7/25/2006

Farm.com $200,000 4/4/2006

Sofa.com $200,000 12/6/2005

Bird.com $200,000 11/15/2005

Sedo reports 37% increase in domain aftermarket prices

Sedo.com, the leading online aftermarket domain name  brokerage firm, reports that year over year, sales volume has increased 5.5% and average sales prices showed a sharp uptick of 37%. Recession? Not in domain name sales. Likely however, an impact of greater interest in internet startups, as other parts of the economy have slowed.

Why do generic domains sell for high prices?

OK, I’ll weigh in with a few thoughts. I’ve studied top tier domain name sales for a long time.

Inevitably, when a high profile top tier domain sells, lots of people post that domains are worthless, and obviously one can brand any business with a meaningless name. It happens all the time. Then they give plenty of examples. Then lots of people post say that the domain was worth millions and it went too cheap.

So I actually decided to study the top 200 historic domain sales and see what I could determine. Here is some of what I found.

92% of all top domain sales are dot coms

88% are domains which exactly match keyword search terms

86% of all top domain sales are single words.

41% are 5 characters or less.

So what about traffic? Do top tiers sell primarily for the type-in traffic? I compared traffic data for several high profile domain sales

http://www.40z.com/2009/04/val.....affic.html

and type-in traffic is apparently NOT the reason most top tier domains sell for high prices.

That still leaves a few reasons on the table.

I found 2 studies, although admittedly did not find many studies on the subject, about response rates to ad compaigns using top tier generic domains vs company brand type domains.

Both studies showed a signficantly higher click through rate for internet ads using category specific generic domains vs other types of domains. So it appears that generic domains can increase advertising efficiency, and perhaps as a result lower the cost of advertising and branding.
It makes intuitive sense.

Besides a startup wanting to sound ‘big’ by owning the dot com for their industry, what about a seasoned end user who wants to keep competition out?

I developed a list of large corporations who own top tier generics for their industries

http://www.40z.com/2009/05/gen.....-them.html

Most certainly some of these companies are not using these domains for ad campaigns, even if some are, however as a defensive strategy they at least prevent competitors from using the domain to drive traffic and capture new customers.

Do top tier generic domains increase search ranking? I don’t have any studies to support that, but I have plenty of personal experience that shows me they do. When a domain exactly matches the keyword being searched for, and there is a site with relevant content for that subject (i.e. not just a parked page) it seems the generic domain branded sites leap frog past others. Of course all my SEO friends will tell you that you can reach the top of page one at the search engines with any domain, on any subject, be it XYZdomainonanything.com. And I’m sure they are right. But my experience shows, generic domains help.

So why do generic domains sell for high prices? Here is what I believe:

1. They give a lesser known competitor in an industry the appearance of an 800 lb. gorilla.

2. They are more efficient in advertising campaigns. Both online and offline. Because they sound authorative on the subject, and they are easy to remember later.

3. End users buy them not only for marketing uses, but to keep competitors out.

4. Some get type-in traffic, delivering new potential customers at zero cost.

5. They assist in search engine ranking

6. They are easy to remember, and to type in, and thus increase return/repeat traffic.

Some of these points, I’ve been able to show with research, and some are just my 2 cents…
I also suspect at exit strategy time, a generic with a viable business might more easily attract a buyer than XYZanydomainaboutanything.com, but I’ll have to do some research on that idea.

Generic domains and the companies using them

Here are a few to give you an idea of how some companies are using generic domains in their online marketing programs -

Bank Of America - Loans.com

Barnes and Noble - Books.com

Bayer - Aspirin.com

Braun - Brush.com

Bounty - Towels.com

Carl's Jr - Burgers.com

Citibank - StudentLoan.com Finance.com

Citigroup - Mortgage.com

Clorox - Bleach.com

CNET - News.com  TV.com Computers.com

CNN - Money.com iReport.com

CondeNast Publications - Gourmet.com

Country Buffet - Buffet.com

Diago - Malts.com  Rum.com  Scotch.com

Discount Tire - Tires.com

Disney - Movies.com

Enterprise - RentalCar.com

Fidelity - Funds.com Rollovers.com 

Fixodent - Dentures.com

Foxy Fresh Vegetables - Salads.com

Fruit of the Loom - Fruit.com

GettyImages - Photos.com

Harrah's - Casinos.com

Hellmans - Mayo.com

Honda - Motorcycles.com  Scooters.com

HP - Digital.com

Intel - PC.com

JC Penny - Gift.com

Johnson and Johnson - Baby.com

K-Swiss - TennisShoes.com

Kraft - CreamCheese.com

Mannington - Floors.com

MasterCard - Priceless.com

Merriam Webster - Word.com

Monster - Jobs.com

National Pen Company - Pens.com

Northwest Mutual - LifeInsurance.com

Nestle - Meals.com

Office Depot - OfficeSupplies.com

PetSmart - Pets.com

Procter and Gamble - Toothpaste.com  Laundry.com

Puritan's Pride - Vitamins.com

Ragu - Eat.com

Real Torino - Pasta.com

REDC - Auction.com

Rocky Mountain Bicycles - Bikes.com

Sylvan Learning - Educate.com

The History Channel - History.com

The Map and Globe Store - Worldmaps.com

The Weather Channel - Weather.com

The Wedding Channel - Weddings.com

Toys R Us - Toys.com

U-Haul - Trailer.com

Vail Resorts - Snow.com

Wells Fargo - Homeloans.com

Woodway - Treadmills.com

Another PPC ad study on effect of Generic domains on click through rates

A white paper recently published which compares the results of click through rates using PPC ads, varying only the display url, has found similar results to the the marketing study we recently reported on.

The white paper, published by MemorableDomains, found that the exact same PPC text ads, produced up to 105% greater click through rates when the generic domain used matched the search term of interest.

Valuing top tier domains - Brand vs. Traffic

Using site analytics from compete.com to estimate numbers of unique monthly users offers some insight into recent top tier domain sales, and whether the perceived value for the buyer comes from capturing existing traffic, or future use of a generic brand. While traffic may be an element of appeal in some cases, overall clearly brand value dominates the valuation in most cases.

Toys.com (sold $5.1 million) has about 20k monthly users, but spikes to 120k in december:
http://siteanalytics.compete.com/toys.com/?metric=uv
 
CCS.com sold for $5.8m has about 350k users per month
http://siteanalytics.compete.com/ccs.com/?metric=uv
 
Call.com sold for $1.25m has around 600 users per month
http://siteanalytics.compete.com/call.com/?metric=uv
 
Fund.com sold for $10 million has about 1500 users per month
http://siteanalytics.compete.com/fund.com/?metric=uv
 
Auction.com sold for $1.7 million has about 14,000 users per month
http://siteanalytics.compete.com/auction.com/?metric=uv
 
Results.com just sold for $500k, has 1200 users per month
http://siteanalytics.compete.com/results.com/?metric=uv
 
VooDoo.com just sold for $300k has almost 4,000 users per month
http://siteanalytics.compete.com/voodoo.com/?metric=uv
 
Photos.com part of a $96 million acquisition closed in Feb. has 85,000 users per month. notice the traffic uptrend when used as a portal by Getty
http://siteanalytics.compete.com/photos.com/?metric=uv
 
Body.com sold for $400k has fewer than 2,000 users per month
http://siteanalytics.compete.com/body.com/?metric=uv

Effect of Domains on Ad Campaigns

Given the high prices paid in the secondary market for generic domain names, it intuitively makes sense to assume that there is a marketing benefit using category and keyword specific domain names in advertising campaigns. In a study designed to measure the effect of URLs in PPC (pay per click) text ad campaigns, there are some results which give some data to support this assumption.

User Centric, Inc. published results of a study which offer some interesting findings for generic domain owners. While the study was designed more from the point of view to help marketers make choices about types of extended URLs to use in PPC text ads to maximize results, these findings were of particular interest regarding generic domains:

"The value of an identifiable domain name in a display URL was highlighted by a test conducted for iNest Realty. Their parent company, RealEstate.com, is a much more recognizable domain name. The test was conducted to determine the impact of using the stronger brand name in the display URL of PPC ads. The test ads are shown below. The only difference between the two PPC ads is the display URL.

New Homes & Home Builders
Find new homes and home builders
1% cash back buyer rebate program.
www.iNest.com

New Homes & Home Builders
Find new homes and home builders
1% cash back buyer rebate program.
www.RealEstate.com

Utilizing RealEstate.com in the display URL resulted in a 20% greater click-thru rate for the bottom PPC ad."

Additionally another surprising statistic found was that, for PPC ads located in the upper left region of the browser, the area where for example, top sponsored links on search engine results are found, the 'gaze' time for the URL in the text ad was greater than the time spent reading ad text. The top sponsored links on the upper left of the page are the most expensive position for PPC text ads, requiring advertisers to outbid all other competitors, and for these ad positions the domain name/URL is of key interest to searchers. Only the headline had greater 'gaze' time.

Gaze time (in seconds) per visit to a Google search results page:

Headline .7 seconds

URL/Domain name .53 seconds

Ad text description .15 seconds

Characteristics of Most Valuable Domain Sales

After compiling a comprehensive list of the top 200 Historic Domain Sales from all publically available published resources over the last ten years, 40z.com has produced some statistical analysis regarding the characteristics of top domain values.

92% of all top domain sales are dot coms

88% are domains which exactly match keyword search terms

86% of all top domain sales are single words

41% are 5 characters or less.

Its also interesting to note that 6 out of the top ten domain sales of all time are 4 characters or less.

What makes a generic domain so valuable?

I've decided to put in writing a brief summary of information on why generic domains are so valuable, since the sales prices of top tiers seem to still mystify most people.
 
Memorability. Probably the most important element is memorability - when the domain is easily remembered, it increases the initial response rate of any advertising (offline or online) campaign. 
 
Return Visits. A top tier domain also increases return visits, because the brand/domain is so easily remembered. When the brand is easily recalled for subsequent visits, the domain in fact increases the efficiency of any advertising campaign, which ultimately reduces advertising costs in contrast to competitors.
 
Search engine relevance. When a domain exactly matches the keyword for a search term used at a search engine, search ranking for the website improves. In other words, Google is likely to rank a website higher in search results when the domain matches the keyword search term exactly. 
 
Increased click through rate. Additionally, upon viewing a list of search results, a higher precentage of searchers will in fact click on the link of a domain brand that matches the search term of their particular interest. Someone searching for a 'widget' is more likely to click on a search result which shows a link to 'widget.com' than say widgetstoreinc.com.
 
Authoritative. Generic domains, in particular those which represent the industry category itself, such as Cars.com for the auto industry, are automatically assumed to be the authoritative site for information about that industry, product, or subject. 
 
Direct navigation search traffic. A significant number of people, rather than using a search engine to find information about cars, will simply type in cars.com in their browser looking for information about cars.

2007 domain sales overview

The number of high profile domain sales is on an ever rising uptrend it seems. While the numbers are impressive indeed, they simply pale by comparison to values created when a business is built on a top tier domain, and it monetizes the brand inherent in its internet identity.

Take note, all of you former real estate flippers, Guy.com sold 10/30/07 for $150,000 and was then flipped in less than 2 months for $1,000,000. The secondary market in domains is alive and well!

A few more notable and interesting domain sales among thousands in 07 include:

Seniors.com $1,800,000

Chinese.com $1,120,008

Porn.com $9,500,000

Investment.com $900,000

Melbourne.com $700,000

Cardiology.com $550,000

Rebates.com $500,000

AZ.com $500,000

SportingGoods.com $450,000

Bald.com $400,000

Cowboys.com $370,000

Resume.com $300,000

RealEstate.net $300,000

Table.com $260,000

Walkers.com $175,000