Ever since the internet became a part of the mainstream, there have been people buying a whole bunch of domain names and holding on to them in the hopes of selling them for a profit. If you have ever tried to get a domain name, you already know that there’s a pretty good chance it’s already reserved. This is mostly true for dot coms, but it’s also increasingly true for .net, .org etc… If you’ve ever wondered why most startups on the internet have weird made-up names, you have your answer.
Systematic.com was sold this week for a tiny $400,000! In this case, it’s a company that held the name and ran two separate websites on their domains. They decided to sell that one to eliminate confusion for users. You can find the press release on their new site.
A domain name’s price is based on traffic, popularity and just plain “how cool” it is. The Alexa ranking is usually a good indication of this because most of the domains that are bought for resale have nothing on them except ads, so if it still generates traffic, it means people are actually landing there for different reasons.
This is not really “news” but I though it’s a pretty cool thing (or just insane, perhaps) that a domain gets sold for a good price once in a while.