2009-12-12 | 3 comments
The sale of ServCorp.com has domainers both scratching their heads and congratulating the seller for the deal in this domain sale. To a new company or an investor this domain would have very little value relatively speaking. However to a company that operated for a number of years and has built their business around the name, the value is priceless.
Other factors are also present that garnered such a price. There is no doubt that the fact that ServCorp.com was previously a business site of a company of the same name in United States, sold to a company of the same name in Australia, helped to legitimize the high ticket price. Also it was an advantage that a professional domain broker was used in the negotiations, as they know the potential value that a domain would have to the right end-user.
It seems that the perfect storm was present for this sale: exact match of domain name to end-user, prior perceived legitimate use, and professional sales presentation and negotiation.
Labels: Domain Sales Tips
Why wasnt this one of those things where the domain name owner was asked to stop using the domain and give it up to the business name owner?
Excellent question, Jodi. I believe that if the domain had been parked then the buyer would have applied for a UDRP or used some other legal method to get the owner to relinquish the domain. However, in this case, and as mentioned in the post, the domain name was seen as being legitimately used for business purposes and not as reg’d for the sole purpose of selling. So the sale was of one business asset to another business. Another factor was the brokering or mediation between the parties. It was professionally handled all the way through and professionalism garners respect. In future posts we’ll look at how domainers can and should build their best domains into ebusinesses to attract quality end-users and make real revenue instead of simply parking them. Thanks for the question, Jodi.
Thanks for that explanation!