I just received a press release from HomeInsurance.com announcing that the company has acquired HomeownersInsurance.com for over half a million dollars.
According to the press release:
“HomeInsurance.com has purchased the domain name HomeownersInsurance.com for a reported $570,000 in an all-cash deal. As America’s number one online home insurance shopping agency, executives at HomeInsurance.com project this purchase will grow their online home insurance shopping visitors to 100,000 consumers each month.“
Prior to the acquisition, HomeownersInsurance.com had been owned for quite some time by Homeowners Insurance Online Services, S. A., a Costa Rican company.
In my opinion, this is a smart acquisition for the company. According to the Google Adwords Keyword Tool, the term “homeowners insurance” gets 33,100 exact match local searches a month, while the primary keyword “home insurance” is only a bit higher at 40,500.
By having two different websites ranking well in Google for these two terms, they should drive considerably more traffic to the site.
One thing I really like about this purchase is that it shows that a company that knows its market can make projections on how a similar (but different) domain name will do once it’s indexed and well-ranked in search engines. It can then use those projections to model how long it would take to break even on a domain acquisition and can determine an acceptable price to pay.
It may seem silly, but I don’t think a lot of companies look at domain names in this way. Acquiring a great domain name like this is one way a company can reinvest in its business and increase its reach.