Thoughts

Andrew Miller

August 27, 2023

Unlocking the Potential: Premium Domains Thrive Amidst Economic Challenges

August has been a really strong month for the most valuable premium domains. Hilco Digital Assets deals for Chocolate.com, Sweeps.com, Lava.com and Plans.com closed. It will be on an upward trajectory for the remainder of the year. It is fair to ask why, considering we are in a tough climate, with interest rates rising, home sales and the entire mortgage business stalled, venture capital cautious, and valuations down. We are certainly still in the danger zone but starting to emerge from it. Smart money anticipates that several months in advance. The most premium domain names outperform all other asset classes long term as stand-alone investments, and provide exponential value across all facets of the businesses that understand the power of the investment. I have said it before; would you rather spend $12m for two Super Bowl ads that last 1 minute or $12m on a balance sheet asset that is your permanent brand and address to the world, has tax benefits, appreciates in value, and can add immeasurable credibility, authority, and enterprise value to your business? And if you do spend $12m on the Super Bowl, you better well have your exact match, category domain in it. We are in a handful of negotiations that will be epic deals when they go down.

Debunking Myths: Understanding the True Worth of Domain Sales

This week, I posted in response to debate over the price we sold the Plans.com domain name for on the new Squadhelp UPM. Discussion on the value of domains is productive. While it is accurate that Hilco Digital Assets is known for 7-8 figure transactions, that does not mean sales below that are bad outcomes. That is measured by many things, most importantly, the buyer and seller are both happy. As I said on X, transparency is crucial in domains and my track record is built on it and integrity. I have seen some Monday Morning QB’ing, largely from those who have never bought/sold a 7-8 figure domain name (I have 47 times), and all without any data. This is a name, as many on the UPM will be, that we have been advising on for awhile and was a great launch name for the ultra-premium marketplace. The buyer was 100 percent arms length from us and Squadhelp. I advise several successful, reputable domain investors and they all had a clear path to buy this domain for $275k and none opted to. If it was a surefire seven-figure name, some or all of these experts would have. There is nothing better than debate on values, it is what makes domains such a magnet for discussion but it is also important to weed out the credible comments from those just looking to “say no when someone else says yes”.

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