How I Spent a Few Thousand Dollars on My Perfect Domain Name

What a weekend! I just spent a few thousand dollars on a premium domain name and I’m here to share the experience!

I know some of you may think that’s crazy, and I won’t blame you – after all it’s a big chunk of money, but unlike  spending money on clothes or video games, a premium domain is a great investment in your business. That is exactly what drove my purchase.

I’ve purchased premium domains in the past, but never like this – it was an auction, and if you’ve ever participated in an auction before (ex: eBay) you should know firsthand it can be pretty exciting, especially when it’s something unique and you absolutely must have it. In the end you don’t just buy it, you win it!

Domain name auctions work a little differently than what most people would expect. Any bid placed in the last few minutes will extend the auction by additional 5 minutes. Essentially you’re waiting for the other bidder(s) to give up and walk away. The auction for my domain extended over half an hour from the scheduled end time. After the auction hit about $1000, the bid increment went up to $100 minimum each time – this made the price go up quickly.

As the auction went on, there were two or three times towards the end, when each time I was  sure I already won the auction. Unfortunately in those last few seconds the other guy placed another bid, resetting the time remaining to 5 minutes yet again – and the process starts over. I think the process can be a little frustrating, since the end time is not set in stone and you have no way of knowing how much the other bidders may be willing to pay for the domain name. In my case, one appraisal for this domain was at $12,000.

I won!

I was determined to get this name, after all, unlike many others bidding on these names to resell, I already had a business in place to setup under this domain name.

In the end I’m very happy with my purchase and I’m expecting a great return on my investment. My domain is easy to remember, its a great keyword, and its over 10 years old! I’m sure it will generate many sales and bring me more customers. Maybe I’ll share the actual domain name, and the results in another post in the future.

Share your thoughts or questions on premium domains below.