Candy.com sold for $3 million : Domain names as a marketing tool

in Domain Names Entrepreneurship Tech News by Francis Simisim — June 11, 2009 at 12:00 PM |

Candy.com was recently sold for $3 million to a company called G&J Holdings. The sale was handled by Rick Schwartz, who’s well known in the domaining industry and has only spent $100,000 a few years back. Why is it that Candy.com was sold for that high? Simple, It’s the best marketing tool for the company. These are some probable reasons why I believe they did it:

Product of the Business

– Candies are their business –

The owner of the company wanted to start their own candy business, and like many, online presence is definitely crucial as people in the US spend more time online than watching TV.

Search Engine Optimization (SEO)

– Try typing Candy in your Search Engines –

Candy.com definitely ranks higher in the keyword Candy in search engines than any other candy domain names sold. It is instant SEO for the company with not much effort, making sure that they’re seen in every search engine when the word candy is searched.

Brandable vs. Premium + Generic Domain name

– It costs a lot to get a Generic and a Premium domain name in one –

Instead of saving on domain names and acquiring a brandable domain name (e.g. GangVentures.com or JoinMinds.com), they chose to spend $3 million in domain names than marketing and advertising a brandable domain name. Candy.com is a natural advertising tool and doesn’t need much work to get tons of visitors all around the world to visit their website.

Credibility & Pride

– $3 million for a domain name? That’s how serious they are –

You’re company will also be more credible as owning a premium domain name shows that you’ve really invested heavily in domain names and you’re that serious in the business. It *could* also be a case of pride, how proud would you be if you told someone that your website is Candy.com. People (especially entrepreneurs and corporates) are starting to understand the value of domain names, most of them would have a clue as to what these domain names are worth.

The acquisition of Candy.com was big news for Domainers, it brought new exposure and awareness to the world. As the bad news on the bankruptcy of the recent owner of business.com, which was acquired at $360 million, was announced recently. Domaining is addicting and the more people become aware and use the internet more, the higher the values of the domain names become.

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