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Six short .uk domains sold for $40,000

Kevin Murphy, April 15, 2011, Domain Sales

Nominet has auctioned off six one and two-letter .uk domain names for a total of almost £24,000 ($40,000).

The domains were all sold to trademark holders, for an average of £4,000 ($6,500) each, according to the auction house, NFPAS Auctions.

The domain e.co.uk went to E! Entertainment Television, while u.co.uk was sold to Ubrands.

Of the contested two-letter domains, aa.co.uk was won by American Airlines, presumably beating out other qualified bidders such as the Automobile Association.

Oddly, aa.org.uk went to Andrews & Arnold, an ISP, which already owns aa.net.uk.

Finally, lv.co.uk went to the insurance company Liverpool Victoria, which already owns lv.com, and cc.co.uk went to Country Casuals, a women’s clothing retailer.

A second auction among brand owners, expected to be similarly small, will be held a month from now. The proceeds of both go to the Nominet Trust.

With only a couple hundred single and double character .uk names currently accounted for, hundreds remain for the next stage of the release: landrush.

Nominet plans to announce the details of that phase on Monday.

Nominet gives away 79 more super-short .uk names

Kevin Murphy, April 13, 2011, Domain Sales

Nominet has handed out more single and double-character .uk domain names to holders of intellectual property rights.

The 79 assignments include 4.co.uk, a.co.uk, c.co.uk, j.co.uk and u.co.uk, as well as dozens of two-letter combinations such as bt.org.uk and bq.co.uk.

The domains were given out as the latest stage of Nominet’s roll-out of short domains, to “unregistered rights holders”. Another 99 were assigned to registered rights holders in February.

Where the organization has received more than one application for a domain, it will go to auction, with the proceeds aiding the charitable Nominet Trust.

Nominet says only a “small number” of domains are heading to auction. Whatever remains will be released in a landrush, details of which will be announced on Monday.

Of the domains released so far, o.co.uk, which I previously speculated would go to Overstock, the retailer that recently rebranded as o.co, has not yet been claimed.

Two-letter domain bx.com for sale

Kevin Murphy, April 8, 2011, Domain Sales

BX.com, an e-commerce software vendor, is inviting offers for its domain name, bx.com.

The company said in a press release that it intends to rebrand itself around its main product, pureCommerce, and is soliciting offers for the domain via sealed bid.

Two-letter .com domains are obviously a scarce commodity. There are only 676 possible combinations, excluding numerals, and they’ve all been long registered.

Many have changed hands, typically with six-figure sums attached, such as li.com, which sold for $500,000 in 2007, and jf.com, which sold for $101,000 a few months ago.

Apparently trying to pump up the price, BX.com’s press release contains this statement:

Companies, both inside and outside of the US, have pursued the BX.COM domain over the years. Most recently, offers have come from the competitors of The Blackstone Group, whose stock symbol is BX, as well as from Chinese multinational corporations.

If the company did not have such well-established rights in the domain – it’s owned it since 1995 – that would look a lot like evidence of a bad-faith shakedown to many UDRP panelists.

dotMusic buys music.co

Kevin Murphy, March 9, 2011, Domain Sales

Constantine Roussos of dotMusic, which plans to apply for the .music top-level domain, has added to his collection of musical domain names with the purchase of music.co.

Roussos, who already owns music.us and music.biz, seems to have been the winning bidder, paying $30,000, when it was auctioned by Sedo late last month, but Whois records did not change until this Monday.

Remarkably, Music.co is already developed. It lets you play from a selection of godawful* music from an artist calling himself “Constantine”, including one track called “.music”.

The domain was previously owned by domainer Mike Mann, who snapped up dozens of premium generic terms in the .com.co namespace a few years ago in order to be grandfathered in when .co relaunched.

Roussos’ dotMusic initiative is currently the only applicant for the .music TLD to have gone public.

Of the other big sales from the Sedo auction, shop.co is now owned by a German search engine, Websuche, and pizza.co was sold to a California-based developer of discount codes web sites.

The domain download.co, which sold for $10,099, now redirects to what appears to be an affiliate marketing site for software called “Driver Detective”, which I was too scared to install.

Many of the other sales appear to have been made to other domainers.

(* I’m kidding. Probably.)

How will new TLDs affect your portfolio?

Kevin Murphy, March 3, 2011, Domain Sales

(Editor’s Note: this is a guest post by Shane Cultra, author of the popular domain investment blog DomainShane. I was interested in hearing new perspectives on new top-level domains, and Shane was good enough to provide his thoughts.)

It was inevitable. The growth of the internet and the ever increasing number of people using the web, was going to cause a shortage in domain names.

As the big three – .com, .net, and .org – reached the point that available domains were merely comprised of unpronounceable and hard-to-spell leftovers, internet users began looking for more.

Countries began to market their own ccTLDs as generics, trying to appeal to both local and international users alike. Domain name registries saw the dollar signs and began clamoring to introduce alternatives.

So now that they’re on their way, how will new TLDs affect the value of your domains? Will .web, .car, .love and all the other endless possible TLD options impact the value of your portfolio?

My answer to this question is simple: yes.

There is no doubt all the new TLDs will impact your portfolio’s value. If you own anything other than .com, I think the value of your domains will fall. I feel that .net and .org will fall the least.

The real answer comes down to how the search engines rank the new TLDs. The TLDs that hold the most value will be able to compete in both the US and the international search market.

If Google treats them well, then they will be in the upper tier. The problem is the more TLDs that Google ranks, the more choices a domain owner will have.

As we know, the more choices the lesser the value and chance of a sale. If there are only three shoes on the shelf from which to choose it bodes better for the seller than a shelf with 100 shoes.

In my opinion, the real money being made is by the companies selling these new TLDs. The new releases will leave the domain investing community and domain buyers in general “holding the bag”.

The .travel and .mobi TLDs showed early what will happen as people shy away from a TLD after a short period of time. Speculators were left with worthless domains.

In order for a new TLD to work it takes massive adoption. The local geographic community, the domain investing community, business, and the general public must be a part for it to succeed.

The new .co TLD has come as close as any in the last five years to getting over this hump; .tv, and .me, have also found their place.

A profitable endeavor for the companies managing the release , but only profitable for a handful of people that hold the best of the names.

So back to the original question, will this hurt the value of my portfolio? My second response to my “yes” answer is I think it will increase the value of your .coms.

Dot-com domains are king and will always be the king. They are scarce , wanted and all those that hold the same keyword in alternative TLDs wish they held the .com. Those that tell you different are either naïve or lying.

Domains are often compared to real estate and .com to beachfront property, and I think it’s a good analogy. Beachfront has continued to be considered the most-wanted and highest-priced real estate.

I would throw in big city real estate in this comparison too. You can still buy homes and land outside the cities and away from the beach. Homes just as nice or nicer. Areas of land that are twice as big but still don’t have the value of the beach and city.

When people think of the internet they immediately think .com. When they think of high priced real estate they think of the beach and city. Along with beach and city property, I believe people will always perceive the .com as the highest value.

This is how I am approaching my investment in newer TLDs. I am treading lightly. I continue to invest heavily in .com with a 10% investment in other TLDs. That 10% is invested in super high-quality keywords.

I have no plans to invest in lesser domains, as I think the only possible way to make a profit on my investment is development and I don’t feel comfortable developing domains outside of my field or keywords from random categories.

When I buy outside of .com, I tend to buy in my niche (the names of plants) as they are in my “comfort zone”. For example, I purchased hosta.me because hosta.com is taken and would cost me a ton of money.

I have all the photos and information to develop a site and with hosta being a very collectable plant I thought hosta.me would work. I also can target US Internet users using my webmaster tools – the audience I am trying to reach.

That same domain was a hand-register which tells me that although that has value to me, I would have very little chance of reselling that domain. In short, a bad investment for a flip. In my opinion, this will be the case with 98% percent of all the new TLDs so be very dot-careful.