Is Diamond.com Worth 7.5 Million ?

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The domain Diamond.com sold for 7.5 million dollars this week, that was for the domain name only. Another 2 million went for the inventory of the company holding the name.

To me thats just a staggering amount of money. Could the name really be worth that much esp. considering how much traffic you could just outright buy for 7.5 million and a 12 dollar domain name.

Comments

Wow

I guess I'm just naive when it comes to domains and their values. Although I don't have a problem spending money on an established domain or one that I perceive has link/branding value, 7.5 million is a lot.

As mentioned, I think I'd rather spend 7.5 million on traffic and name recognition.

Tax?

Maybe there are benefits related to depreciable assets and such.

That does seem to be a high price - even though diamond.com likely receives a thousand or more people a day typing the domain directly into the browser address bar.

According to Alexa

Well according to Alexa my blog has about the same reach as diamond.com Alexa reach. I'll open the bidding at a cool million.

I think you have to look

I think you have to look longterm and off the web to really appreciate the value of a domain... like how much is cars.com worth? how memorable is that name?

the diamond market is huge.

I bet the owners of

I bet the owners of diamonds.com have the biggest hard-ons after that sale.

Which was the one spammin and jammin?

...the one with the "Ethical SEO Links" hidden on-page?

Give me rare-sparkling-jewels.com

and $7.5 million, I'll get traffic, build a better brand and still have $7.25 million in change... Silly bastards.

well I think most people

well I think most people don't realize how efficient some of us can be. what happens if they buy diamond.com then later hire you edit g?

was that last comment an ad ;)

I have actually found that to be a pleasantly effective marketing technique...

(insert company x / companies in field y) is completely screwing up. better solutions are available that are better...hire me hehehe

or press coverage

maybe they made it so high so they would get press coverage of it? they did seem to make sure they pointed out 2.5 million was for the inventory (jewels) and 7.5 mil for the domain only... could be a marketing thing maybe...

GW, dude

... clearly u are not monetizing ur domain well enough. ;-)

P.S. FWIW, that domain has HUGE type-in traffic.

Well according to Alexa my

Quote:
Well according to Alexa my blog has about the same reach as diamond.com

Well you're just another of the carve my name in bits crowd aren't you.

Not an ad...

Definetly not - I think sticking needles in my eyes would be preferable to working with someone who thinks a $7.5 million domain name makes a business. ;-) If it's a crap business the domain name won't make a hoot of a difference to it's success. If it's a decent business, anything else (like a great domain name) is just a bonus.

It's a pretty stupid

It's a pretty stupid business move.

Just about every successful web property has started out with a domain name that had little or no brand meaning. Yahoo, Google, Amazon, eBay and many others have already proven that it's the content that builds the brand and not the other way around.

after looking into it I am

after looking into it I am agreeing with KPaul. They bought an existinig business with active accounts, inventory, and a site then wrote the deal in such a way to get the domain in the news.

Interesting

how memorable is that

Quote:
how memorable is that name?

I don't think it is very memorable at all. There is no brand associated with "diamond.com" or "cars.com" like there is with "Yahoo.com" or "Amazon.com".

It is generic and, therefore, not memorable.

meh...

I think a specific domain like that has to lend some credibility to an operation. Maybe not as much as is needed to get people to drop 6 figures on a rock, but then again you don't need to sell too many of those to make back your 7.5 mil.

branding curve

I think convincing people diamonds.com is a reputable and reliable source for buying diamonds online will be just a teensy-weensy bit easier than convincing them oohay.com or nozama.com is.

Drop In The Bucket

7.5 mill, if you're a diamond dealer is a drop in the bucket. Can you monetize that? Of course.

>>Silly, said the SEOs. Brilliant, said the marketers...

Personally I think that's a

Personally I think that's a good purchase, it's all relative to those in the industry, and as DigitalGhost just said - a drop in the bucket. Some purchase deals through the site are prolly worth that much. Perfect branding.

Yes but the value of DIAMONDS is totally fake/fixed!

It's the perfect domain pricetag for a product with an artificially inflated value!

(1) Diamonds are actually extremely common. You can even artificially manufacture completely flawless diamonds now.

(2) The DeBeers diamond cartel is famous for monopolizing the entire diamond industry. They restrict the supply of diamonds on the market, and control the pricing as well! Pretty sweet deal for them!

From the wikipedia on DeBeers:
In 1994 De Beers was charged by the United States Justice Department with antitrust violations for conspiring to fix prices for industrial diamonds. On 14 July 2004 De Beers pleaded guilty to the charges and paid a $10 million fine.

hmmm is diamond.com worth

hmmm is diamond.com worth business.com?
I don't think so...

so maybe business.com was

so maybe business.com was underpriced...

business.com the deal

business.com

the deal wasn't for all cash so it's really not a comparable sale.

perspective?

cars.com $100 million ad campaign
http://www.clickz.com/news/article.php/3607571

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