Sale of Iran.com highlights value of “hot topic” domains with uncertain sustainability
By admin on Jun 15, 2007 in strategies, deals
Some domains will always have intrinsic value. Think news.com, suppplies.com, and trucks.com. These are the ultra-generics - subjects that are not overly sensitive to the constantly shifting focus of our collective mind. People are always looking for news. Purchasing managers are always thinking about supplies. And construction workers are always thinking about trucks (well, maybe not always).
The value of “hot topic” domains, in contrast, shifts as the focus of the collective mind shifts. Think WorldSeries.com, 2008election.com, and even parishiltonjailpics.com. Determining the value of these domains is a bit trickier than others because it requires a timing component and an assessment of the sustainability of the underlying topic.
The sustainability calculation is relatively straight-forward for some topics. Think about the 2008 election. People are already interested in the topic, and we know (approximately) when that interest will begin to fade. The value window is quite well-defined, and the value of domains tightly related to that topic will likely remain high in the window, and drop once the window closes.
Sustainability for other topics, though, is quite difficult. Think about poor Paris Hilton. Surely people are thinking about photos of her in jail today…but how long will that remain the case? What if she gets thrown in the slammer again…and again? What if she truly did find religion?
DNJournal reports that, this week, Iran.com sold for $400,000. From a US point-of-view, it seems to be a “hot topic” domain with uncertain sustainability. How long will Iran be on the collective mind? It’s probably a safe bet that we’ll be thinking about it for awhile, but that focus could also disappear overnight (perhaps some Tuesday night in November of next year).
The key for domainers, though, is that it shows that “hot topic” domains with questionable sustainability can still hold significant value. The interest in domain investments is reaching new highs, and it’s good to see the value of these speculative plays increase as well.
Technorati Tags: domain names, iran.com
uzma | Jun 26, 2007 | Reply
Iran is a country name, hot or not. And it an important oil-producing country with long well-known history as opposed to say, ivory coast. In my opinion it sold for very little. someone just passed a 3 mill offer on scotland (assuming everythign is reported accurately and honestly). I wouldn’t sell iran for less than 1 mill.
Matt | Jun 27, 2007 | Reply
I agree on the valuation. The growing consensus is that iran.com was sold at a tremendous discount.
As a country name, it will always have significant value as you suggest. I think the “hot topic” bumps it to the next level. The increase due to “hot topic” status is the amount with uncertain sustainability. If all of a sudden Iran is deemed friendly and disappears from the focus of the collective mind, the value of the domain likely drops back to just that associated with it being a plain old country name.
Regardless…you’re right…it sold for a song.