We will not buy business.com - It’s now official

Posted on June 24, 2007
Filed Under web 2.0 news |

We have been thinking about buying the business.com for a long time, but we decided to resign. Guess why?

If you don’t know how much business.com is worth just read those few lines from the WSJ:

“The company that grew out of business.com — a search engine used by businesses to find products and services — is now on the auction block, and could fetch anywhere between $300 million and $400 million, according to people familiar with the matter.

Closely held business.com is expected to attract a host of interest from the likes of media companies such as Dow Jones & Co. and New York Times Co., these people said. Requests for comment from Business.com and the New York Times were not returned yesterday evening. Dow Jones, publisher of The Wall Street Journal, declined to comment”.

Of course, we are joking about buying this domain, but the thing we want to underline is that hardly anyone has a business model that can sustain such high costs as $400 for a domain.

Let’s imagine you buy this domain. You can’t be 100% sure you business model will work, but you can be sure that in order to use this domain you have to spend hell a lot of money, which are sunk costs.

The main problem is how to estimate the value of such a domain and what kind of industry should be used for. That’s a big dilemma.

In brief, we are not going to buy business.com this week, but we will definitely read as much as possible about this issue.