An online lead generation company for real estate professionals has paid $565,000 to acquire the domain name Carrot.com, upgrading from its previous domain OnCarrot.com. Much like a storefront window, a good domain will create awareness and attract customers and the right domain name can save you thousands of dollars on your marketing budget. Their brand was Carrot but their domain was oncarrot.com which caused a brand conflict as customers thought their brand name was oncarrot.
How did the price get to that level in the first place?
You can say that a domain is worth what a company or a person at a specific time is willing to pay for it. In this case the company Carrot was willing to pay 565,000 USD for it.
Rule number one – A domain name and brand name should always, if possible, be the same, because it is all about brand recognition. This is why the right domain name can be very precious to you or your company. A domain is your online brand. It is the place where your customer can go and find your products and services.
You should not underestimate the price of a domain name, especially if it is short, memorable and easy to spell like the carrot.com or voice.com which sold for 30 million USD earlier this year. Having the right domain name will make it easy for your customers to find you and remember you. Do you remember seeing ads with web addresses that you can no longer remember when you get home in front of the computer? Or web addresses that are so hard to spell that you give up in the end and go for something else? If your customers can’t find you they might end up with one of your competitors and that will mean less customers and less revenue in the end.
Are you in the same position as carrot.com looking for the domain name that matches your brand name? We will be happy to help you secure the right name for your company. Call dotwhat and speak to our domain acquisition specialist Marcus +45 44221941