Today I spotted an interesting press release, the announcement of the $150,000 sale of User.com to UserEngage. I checked the date, December 4th, 2018. Hmmmm, I thought…isn’t this old news? Didn’t Elliot break the news of this sale back in October, and I wrote an article about how it sold for too cheap?
The beauty of the Internet is that twenty seconds later I had confirmed that yes, Elliot from DomainInvesting.com had broken the news of the $150k sale of User.com back on October 28th. I personally think that UserEngage got a great deal on this domain, and I wrote a post about how it probably was sold for too little. Well, even though it’s a couple months later, we can now hear a bit more from the UserEngage perspective on the acquisition.
The risk they took at a very early stage of their business life can surprise but company CEO, Greg Warzecha doesn’t have a doubt the purchase was worth it. “The money we paid, $150,000, seems a very high price for a domain. But when you think about it for a while, then you see it’s a great deal. Look, we are living in a world that is out of 4L domains!” (Source – PRWeb)
The press release also cites three other domain sales when talking about how much domains can sell for. They shared iReport.com which sold for $750 to CNN, Insure.com for $16M, and VacationRental.com for $32M. The strange thing about these examples is that only one of them was the sale of a domain name. Insure.com and VacationRental.com were businesses, if the domain was sold independently those numbers would be much lower.
It probably would have made more sense to mention more recent 4L .COM sales like Kush.com for $500k and Seva.com for $310,000 (Source – DNJournal). And hey, while we’re talking about similar sales, is it just me or would you have expected User.com to sell for more than Seva.com?
All this being said, there’s no doubt that buying User.com was a great move and I bet Greg is reaping the reward of this move, especially doing it so early in their company history. Congrats to the whole User.com team, I’m love to interview Greg a year from now and hear about the impact the domain had in its first year!