December 17, 2006
Generic Domain Names Go Big
The vodka.com domain name has sold for a cool $3 million, bought by the Russian Standard conglomerate, which controls two thirds of the sales of premium vodka in Russia.
The vodka.com buy will in all likelihood enable Russian Standard a greater presence in the US, where it hopes to gain significant market share for its Imperia brand.
According to a Reuters article on the sale, Imperia's recipe was supposedly first brewed by Dimitri Mendeleev, the man who also invented the periodic table of the elements. David Kesmodel reports that it seems to be Vladimir Putin's favorite tipple.
According to Kesmodel, the sale seems to be regarded as "a good indication of how large corporations are starting to see the value of domains as a crucial part of their international marketing campaigns." Kesmodel reminds us that this is not the biggest generic domain name sales ever: AOL bought games.com for $11 million. CNN notes that diamond.com sold for $7.5 million to jewelry retailer Ice.com, and Business.com sold for $7.56 million in 1999.
Earlier this year, of course, Sex.com sold for around $12-$14 million to Boston-based Escom LLC.
Some interesting alternative generic domain names are also available. Textmessages.com has not been sold yet, it seems. In the .mobi domain we have seen dozens of generic domains sell for what one blogger calls "insane prices." In fact, .mobi may be the "name for 2006" reports Domain Name Values Weekly, with companies getting a great deal of bang for their buck for generics like heat.mobi, which could be used to promote a basketball team or an air-conditioning service.
If you are contemplating buying a domain name for your brand or indeed getting a generic, Tammy Lenski has a great post up for you that will help you check your brand name's availability.
On a lighter note, LedRim.com is for sale. One seller points out in all seriousness that this would be a great place to sell wheel rims for your Navigator that show "real pictures" as they spin. You can acquire these right now; they are sold under the brand name "Pimpstar." The cost for this domain? A mere $2500. A bargain, these days.
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