So while housing prices in the real world are falling, realestate on the internet is still booming. Well known Toy Store Toys R Us has just bought the domain name toys.com for $5.1 million in a neck and neck bidding war with National A-1.
National A-1 is a company that buys premium domains and re sells
them with huge margins; some examples of the domain’s they own are
free.com, boys.com, girls.com, divorce.com, etc.
All other companies eyeing the hot property toys.com bowed out at
the $3 million point, with Toys R Us and National A-1 fighting out the
remaining 2 million.
But if Toys R Us want to be the first thing people think of when it
comes to toys then $5.1 million was worth it, highlighting the growing
acceptance of the internet as a primary distribution channel.
Purchasing a Domain name like toys.com is probably already worth a
couple mill in branding dollars not to mention the SEO value Toys R Us
will be reaping from this, effectively saving them large amounts in PPC
spend as well.
National A-1 have also recognised the value of online realestate,
making their business dealing domains - interestingly their own home
page can be found at www.catnip.com, obviously one that hasn’t been
snatched up for millions yet.
