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Media Options Sells RH.com

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It appears that Andrew Rosener of Media Options has sold the two letter domain name, RH.com. According to Whois records, the domain name changed hands a little over a week ago, and the buyer appears to be a California-based company. I asked Andrew if he could share the sale price, but he could not due to a non disclosure agreement.

Media Options acquired the domain name in 2011 for an undisclosed price, and it appears to have been purchased via Domain Capital. Knowing Andrew, I would expect the company achieved a very attractive sale price. He mentioned that the buyer intends to use RH.com, and the landing page indicates the website is under development.

A little over a year ago, Andrew’s company sold DX.com. That sale was also subject to a non-disclosure agreement, but it was a quick flip as well.

Congratulations to Andrew, who was also recently nominated for a TRAFFIC Award for Domain Broker of the Year.

*** Update:

Toby Clements, another Domain Broker of the Year nominee, sold a two letter .com domain name last week. YG.com was sold for $125,000 via Toby’s newsletter.

When it Comes to Domain Name Sales, Inconsistency is an Issue

One of the biggest issues that high value domain name sellers and domain investors face is the inconsistency in selling domain names. I might be able to sell five $50,000 domain names in a month to five different end user buyers, but I might not be able to sell a $5,000 domain name for two months after that. There is very little consistency with domain sales.

Different prospects in different fields value domain names differently. As a result, one doesn’t know if he will generate $100,000 in net income a month from domain sales or $10,000 in a month. The inconsistency makes things more challenging, and it is one reason there aren’t a whole lot of people doing it for their primary source of income right now.

If you want to be a domain seller/flipper, you need to realize there will be little consistency with your sales. One month you might net six figures and another month you might only gross 5 figures (maybe less, although you probably couldn’t do it for a full time living if you’re not earning 5 figures a month).  After a while, you can get an idea of how much money you’re going to earn, but there’s always the possibility you’ll be way off with your projections.

The inconsistency with domain sales is one reason I’ve developed and maintained a few websites (like DogWalker.com and my blog) so that there is a specified amount of consistant revenue each month, but at the end of the day, selling domain names is inconsistent by nature.

You can certainly make a great living from selling domain names, but it’s not as easy as it sounds and it’s tough to predict.

Potential Buyers for LL.com Domain Names

As I mentioned earlier today, four LL.com domain names have come on the market in the last couple of weeks, and they are being brokered/represented by Sedo, Toby Clements, and Domain Guardians.

I was thinking about some potential buyers for these domain names and wanted to share these ideas. In my opinion, a two letter .com domain name can be a very solid investment (depending on the purchase price of course) and it can also help with marketing.

Four LL.com Names Being Marketed

It seems like two letter .com (LL.com) names have appreciated as much or more than any other type of domain name in the past 10+/- years. I am sure others have appreciated the same or more percentage-wise, but 2 letter .com names seem to have increased in value much more than most other types of domain names.

This week, I heard about two LL.com names that sold in private. I don’t know the prices, but I am pretty comfortable saying the sales were for low to mid 6 figures, with one of them likely being closer to mid-6 figures based on the information I was given. I’ve also seen four 2 letter .com names actively marketed for sale this month:

Boulevards Sells Denver.com in “Seven Figure” Deal

I just received a phone call from Dan Pulcrano, CEO of Boulevards New Media Inc. , and he was happy to share the news that his company sold Denver.com in a “seven figure transaction.” The buyer is Denver businessman Peter Niederman, CEO of Kentwood Real Estate, and I was able to confirm the deal with him over the phone. Niederman also  recently bought Boulder.com and he also owns and operates DenverRealEstate.com.

The exact terms and financial value of the deal are subject to a non disclosure agreement, but Boulevards will continue to manage the property on behalf of the buyer. Prior to the deal, Neiderman had been the exclusive real estate partner on Denver.com. Niederman’s company did $1.1 billion in residential real estate transactions last year and is on target for between $1.3-$1.4 billion this year.

Boulevards bought the domain name in 1996 for $6,250 as part of what is believed to be the domain name industry’s first significant portfolio purchase. Boulevards is currently the largest owner and operator of top tier US city names with properties that include Seattle.com, SanFrancisco.com, LosAngeles.com, Dallas.com, SanAntonio.com, Houston.com, Philadelphia.com, Memphis.com, Minneapolis.com, Raleigh.com and others.

After speaking with both the buyer and seller, it is very clear that this transaction is a win/win for both parties. Owning Denver.com will certainly benefit Niederman and his agents, and Pulcrano was able to sell the domain name for a considerable amount of money.

You can read the press release announcing the deal below.

3 Reasons to Use Third Party Escrow Service When Selling With Brokers

Domain brokers are an important part of the domain industry, and there are many fantastic brokers whose dealmaking skills bring revenue to domain owners. When using a broker or brokerage service though, I recommend using a third party escrow service such as Escrow.com,  Afternic’s escrow service, or Sedo’s escrow  to be an intermediary, and I’ll share a few reasons why this might be a wise idea.

Keep brokers honest

I’ve heard stories about brokers allegedly taking money off the top when closing deals on behalf of domain sellers. For instance, if I told a broker I want $50,000 for ElliotsBlog.com and a broker tells me he has a $40,000 offer, if he’s in the middle of the deal, he might actually have sold it for $50k and pocketed the remainder. If you work with a third party, the sales price will be transparent.

Ensure swift payment

After I transfer a name to a buyer or to a broker, I expect to be paid ASAP. There would be no reason for the broker to keep the buyer’s funds any longer than it takes to set up a wire transfer online (or get to the bank to do it in person) once the domain name is transferred to the buyer. With a third party escrow service, once the domain name is in the buyer’s possession, your funds are released.

Licensed, insured, and bonded

Generally speaking, US-based escrow services are licensed by state regulators, insured, and bonded. You don’t have to worry about them running off with your money and your domain name. When dealing with an unprofessional broker, you may give up the domain name and not receive the funds and you don’t have much leverage, especially if they aren’t based in the same jurisdiction as you (and litigation is probably very expensive).

I don’t see why a domain broker would have an issue using a third party escrow service to facilitate a domain sale. If they are concerned about their commission payment, you can ask them to have the buyer pay that directly and take it out of your payment.

Using an escrow service makes for a cleaner transaction and can ensure fairness for all parties.