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Are you repairing or selling phones? Then the auction for Phones.net might interest you!

Domain Phones.net is in Auction

I am sure that by now you are aware that a great domain name can make or break a business. An exact match domain name can get you instant authority, a valuable asset and also decrease your advertising budget. According to MediaOptions an exact match domain can decrease your Adwords advertising budget by 35% and increase the click through rate of your ad for even 45%! In their example that meant a revenue increase from $60 million to $100 million in only 5 months!

With this display of power of an exact match domain it is not surprising that all good .com domain names have been purchased in the 1990 to 2000 and are either developed or for sale. The pricing depends on the domain name, the niche and also on the buyer. For example, 360.com was sold last week for $17 million to the company that built their business on 360.cn. Now NNN.com (that means number, number, number) are usually being sold in the $xxx,xxx range (it depends on the numbers, for example 888 is worth much more then 482, and what those numbers mean). The number domains would need a whole new post to explain why some are good and some are bad, so we will explain that another time.

Last year has caused a lot of buzz in the domaining industry because of a big entry of chinese domain investors into the domain world. They have been buying domains left and right for big amounts and from the start of the new year, it doesn’t seem that they are going to stop soon (360.com is just one example of a million dollar sale this year!). But it is not only investors that are purchasing top domains, more and more companies are seeing the value of an exact match domain name.

In the past few weeks there have been over 40 reported end user sales! But digging deeper one can find thousands of end user sales and one example of a company “getting it” is the purchase of Phone.com in 2003 for $1,2 million. The domain is fully developed and is ranked among the top 35,000 sites on the internet according to Alexa and on the front page they boast that they have worked with over 25,000 business!

This brings us to the latest auction that I just saw on Flippa.com (a domain and website marketplace) – Phones.net. The niche of cellphones, mobile phones or simply phones is one of the biggest markets in the world! Apple has had a recording breaking profit in the 4th quarter mostly just because of the outstanding sale of their Iphones!

I have done some digging and I saw that both Phone.com and Phones.com are both developed websites which means that, unless one of the companies goes bankrupt, these two domains are gone for good. The next best thing to own, if you can’t get the .com, is to own a .net. And net domains have had their share of huge sales as well. Just last year we saw the biggest of them when Mobile.net sold for $500,000!

I have reached out to DNIB.com (the broker who is selling the domain) and they told me that their auction has a much lower reserve that they expect to reach either by a bid much prior to the end of the auction or on the last day when these types of auctions get the most action.

I have to admit that I dabble in the domain name world a bit and think that exact match domains are one of the best investments for a business. It is like buying store space on the 5th avenue online.. So what do you think about domain names? For how much do you think Phones.net will sell for? Let us know your thoughts in the comment section below.

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TLN