case study business using domain names benefitsWhat has been tough to prove to businesses is how domain names can benefit their business, when they ask for case studies or examples, everything is pretty much dominated by internet based companies (or more known online). This doesn’t convince them as much nor does it help them understand further the importance of a great generic domain name. But today, a traditional local shop business case study is gonna prove it…


… the news came out recently at the Coventry Telegraph (UK) on the guitar business (Richard’s Guitar) that owned Guitars.CO.UK. What is very interesting about this story is that the owner bought the domain name 10 years ago for a massive £10,000 (UK pounds) price tag, which during the 90’s was a totally ridiculous price for a ccTLD. Today, even including the economic recession factor, he was offered £35,000 for the domain name plus a share of profits to which he declined.


domain name guitar UK website— Selling Guitars is a lucrative business —


So why didn’t he take the deal? Very simple, he was getting good sales from it. There are also other benefits:


  • Reduced Marketing / Advertising costs (instead of print ads, tv or radio ads)
  • Open 24 / 7 (it is an e-commerce shop, even while his physical shop is closed)
  • International Presence (Worldwide coverage of the web)
  • SEO (Search Engine Optimization, which puts his business on top pages of searches)


The owner values his domain name at £100,000+ and wouldn’t settle for anything less than that. And I believe it’s even under priced, considering that this is the average stated figures:


800 Hits / day

20 Sales Per Day

£3,500 per guitar (Highest priced)


That means that he’s making £70,000 if all sold were the highest price, so even if you half that at £35,000 multiply by even just 5 working days in a week, you’ll get an easy £100,000 figure. Considering that some value domain names by yearly revenues, which it’s worth 8 – 20 times it’s yearly revenues, it could be worth a good million or more if it was the basis for calculating.


This is a great example of a business really taking off with the help of domain names, businesses should really open their eyes now and find the benefits that domain names have to offer and start investing in them. Sooner or later, competitors are going to see it and might do it before you, so it’s best to put your foot down and get the best weapon on your side before someone else does.

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