Do you buy a lot of domain names? Worried that you’ll not make money out of it? Stop worrying, it seems acquiring premium domains is still very much profitable.
This year several high priced domains were sold: Ad.com was sold for $1.4 million, Fly.com – $1.8 million, Candy.com – $3 million, Toys.com – $5.1, and recently Insure.com for $16 million.
Insure.com, a publicly traded company in the NASDAQ stock exchange recently sold its domain and corporate name to QuinStreet for $16 million; ten times more than what it paid for when it acquired the domain in 2001.
QuinStreet, the Dot Com that also acquired Internet.com for $18 million, is an online performance marketing company. It helps businesses target consumers by using proprietary technologies and media reach to generate sales leads.
After QuinStreet takes over the domain, the former Insure.com entity will change its name to Life Quotes and will continue normal business operation since the sale involved only the corporate and domain name. Life Quotes will retain all of its assets, national brokerage contracts, fully licensed agents, call center operations, customers and prospects list, and nearly all of its current inbound affiliate and traffic partnerships.
However, Life Quotes is expecting a revenue reduction of 10 to 15 percent for the next two to six quarters now that they’ve sold their original domain name to QuinStreet. Some are even saying that it will take a lot of marketing dollars to purchase the lost traffic when QuinStreet takes over Insure.com.
Whatever the effects of this deal, it will be openly observed because Life Quotes is still a publicly traded company and is required by law to report its earnings on a regular basis.
More at:
http://www.techcrunch.com/2009/10/09/insure-com-sells-for-16-million/
http://www.elliotsblog.com/insure-com-sells-for-16-million-7361
http://www.kikabink.com/news/insure-com-website-and-domain-name-sold-for-16-million/
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